I'm working on integrating a recently acquired subsidiary, and I'm discovering some major issues with their IT setup that predates our takeover. I'm remote, so I've been relying on contractors for hands-on work. They were tied to a previous contractor who did a poor job with structured cabling—everything's a mess, from unlabeled cables to mismatched wiring standards. Just recently, while relocating some cables, we faced a loop issue that caused panic among the local staff. They called the ISP, which turns out to be the same shoddy contractor I thought we had let go. It appears they have a 10-year contract in place with seven years left! I need to know if any of you have dealt with such long ISP contracts and what justified them, as I suspect we're getting overcharged for managed services bundled into one bill. Has anyone experienced something like this?
3 Answers
Seems like a textbook case of firms getting roped into bad deals due to inexperience with ISPs. People don't often realize just how crucial it is to assess the service quality before signing those long-term contracts.
You’d think those long contracts are all about locking in costs, but honestly, they often exist because someone is benefitting from the situation. If there’s a conflict of interest at signing, you might still have a way out, but that could take some digging.
It's pretty unusual to lock into a 10-year contract unless you have some solid capex forecasts or it's a government facility. Typically, long contracts mean bad deals, especially if they're linked to poor service. I've seen some clients in Canada steer clear of these agreements because they can really backfire in the long run.
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