Managed Service Provision - Solicitor's Journal
1st October 2004
Rent of Buy your Computer System? …that is the (new) Question
Years ago most ‘modern’ firms of solicitors had large computer rooms full of air conditioning units and masses of cables and ‘data processing’ staff who talked in tongues.
In 2004 things have changed, at least in most firms, however some still chose to employ their own specialist hardware and software engineers, while others rely upon the support skills of their respective suppliers.
Just as the technology has changed considerably over the past twenty years, so it may be time for business to consider changing the way it acquires its chosen IT systems in the first place.
We all seem to have the concept of owning property engrained in us from birth. Whether it’s a pair of roller skates, a bike, a home or a new computer system, we are encouraged to part with our hard earner cash and buy ‘it’ outright, even if that means going into debt.
However as we approach the half way mark in the first decade of the new millennium, does this traditional way of thinking still hold water? Is it the best way for your firm to spend its money, especially in relation to IT and all things Hi-Tech. Does paying cash ‘future proof’ your investment when, as we know, software and hardware technology are changing so quickly?
There are alternatives. While the vast majority of law firms continue with the tried and tested business model of writing large cheques for their chosen system - and going to the further expense of employing in-house staff to manage it, the LCL Group of law practices think somewhat differently.
It all started when the LCL Group, with offices in Leeds, Manchester and London opened a new facility in Bradford to specialise in high volume debt recovery. However, unlike similar law firms in this market LCL decided that they didn’t want to own their computer system.
Ian Longbottom, one of LCL’s directors, explained, “As a new start-up enterprise we were acutely aware of the need to establish ourselves very quickly in the market. We wanted to maximise the opportunity that existed, whilst at the same time securing our client base by delivering the very best possible service. However as with any new business we faced a lot of initial investment and therefore had to look at prioritising our needs. We wanted to take advantage of the latest and most up-to-date technology, but decided that to purchase a total system outright and go to the trouble of employing dedicated in-house IT staff was not the best way of employing our limited resources. So we looked around for an alternative approach and after an in-depth survey of the market opted for what is known as Managed Service Provision (MSP).
“This is where the supplier provides their customer (us) with the necessary hardware, system software and all the applications software that we required, as a fully managed service, for a fixed cost per user per month.
“One of the great benefits of such a service is that as and when our needs change we can very quickly and easily add additional users, for a small increase in the monthly fee. In addition to all the hardware and software, our single monthly MSP fee also provided for full system implementation, complete training for all the staff, comprehensive maintenance on all the hardware and on-line software support.
“The result is that we have achieved a distinct advantage over our competitors which has led directly to an increase in business. We can budget more accurately, we have a much clearer picture of the link between contribution and profitability per user, plus we have the tax advantages that come from renting.”
Mr Longbottom concluded by saying, “We decided to opt for an MSP approach because we thought that it would be more effective for our firm, and we were right. We have worked closely with our chosen supplier and now have a system that is second to none in its scope, functionality and the services it provides to our clients and users alike. For example, clients can now access their own cases via the additional on-line look up facility, reviewing and managing their cases in real time via the Internet. This new use of technology saves large amounts of time and is one of the many features of our first-class service that clients have found to be of tremendous benefit.”
The MSP system adopted by LCL Bradford is just one of the many novel ways in which firms can protect themselves against the vagaries of a technological revolution that shows no sign of slowing down.
Tony Klejnow, Managing Director
Linetime Limited
Leeds
LS19 7YA
T: 0113 250 0020
E: info@linetime.co.uk