Flat-rate IT: Zurich company records strong growth
Zurich-based IT service provider care4IT.ch grew by over 30 percent last year 2020 thanks to flat rate IT and managed services. In addition, the share of recurring revenues was increased to 35 percent for the first time. The forecasts and outlook for the current year promise continued unabated growth.
The "flat rate strategy" adopted by care4IT.ch a few years ago also bore its full fruit in 2020. Thus, despite the Corona pandemic, the company was able to record another financial year with an increase in sales of over 30 percent. This was achieved not least because the two owners Philipp Hollerer and Matthias Naber focused more attention on employee branding in addition to customer business, thereby increasing care4IT.ch's Kununu rating to a value of 4.9, which is also well above average in IT. In this way, the rapid new customer and project growth could be reconciled with the recruiting of new IT professionals.
Managed services and flat-rate IT are booming
The successful change in care4IT.ch's business model from a rather reactive project service provider to a proactive full-service provider is particularly evident in the rapid growth of recurring revenues. While management services have been growing at a constant rate of between 25 and 30 percent for several years now, income from flat-rate IT is currently virtually exploding. After around three years of introduction, the company now has a whole range of customers who have their IT comprehensively managed by means of a simple and transparent flat rate.
Sales will triple
In 2021, Philipp Hollerer expects flat rate revenues to at least triple. "It took us the last three years to understand the logic and risks of a flat rate business model in our industry so well that we could also work with it economically. Before that, we were often worried that at the end of the day we would sell our services too cheaply and therefore unprofitably" Philipp Hollerer explains the progress of the business development. "Flat rate has to be learned," he concludes his remarks.
Flat-rate IT: still a little-known model in Switzerland
"In Germany, flat-rate IT is now part of the basic offering at the vast majority of IT system houses. On the one hand, this may be due to a pronounced all-inclusive culture and the higher price pressure in Germany, but on the other hand, it has immense advantages for both customers and us as an IT service provider," explains Matthias Naber. "It helps customers to manage their IT costs transparently and predictably, and it helps us to build up a high-quality managed IT infrastructure, including specialist staff, and position it on the market," concludes Matthias Naber.
More information: care4IT.ch GmbH
