Since 2005, TSIA has been tracking service revenue and profit trends for the technology industry in our widely followed Service 50 index. We aggregate the financial performance of 50 of the largest global providers of technology services to identify service revenue and profitability trends, while also providing critical observations based on the current quarterly update.
In recent history, these trends have very clearly pointed to an increasing reliance on both service revenues and profits to sustain the health and growth of technology product companies.
Watch our recent Service 50 Q2 webinar, in which we identify the latest observations and trends for the technology services industry, complete with detailed data on how these top 50 companies are currently performing in Q2. Here’s a recap of some of the key points we covered.
I am pleased to announced that TSIA’s 2nd annual Knowledge Management survey is now open! Knowledge management (KM) is one of the most frequent inquiry topics from TSIA members across service disciplines. In fact, 24% of my inquiries over the last year were about KM and self-service, which is pretty impressive considering I cover 24 categories of tools and services in my research.
TSIA Member Survey,
The title may sound tongue-in-cheek, but there is a set of strong, fact-based data points that support the assertion that those that don’t offer managed services are risking the long-term health of their P&L.
In my second MS Pulse webinar of 2014, I revealed the market influence on managed services, focusing on several core MS Key Performance Indicators (KPIs) that all Managed Services Providors (MSPs) need to track, as well as some of the details on how companies are organizing their MS businesses.
Here is a snapshot of some of the data revealed.
key performance indicator,
managed services providers
Technology Services World 2014 Service Transformations is your most powerful and cost-effective way to learn, engage, and share strategies, best practices, and solutions to achieve Corporate Growth in the Age of Services.
Our power-packed schedule will help you understand the shift to B4B and provide you with a road map for successfully navigating your future. View the infographic below for an overview of how to thrive in what is the most challenging, exciting, and revolutionary time in our industry.
Technology Services World,
Michael Stipe sang (in the song “King of Birds”) that “standing on the shoulders of giants leaves me cold.” Stipe was referring to Sir Isaac Newton’s statement that humans can best move knowledge forward together; building on the knowledge of those who came before. Personally, I find standing on the shoulders of giants exciting and rewarding. I actively look for "shoulder standers." Their commitment to sharing and improving knowledge will make your team even more successful.
In traditional tech support, there’s a virtual pendulum of priority that swings back and forth from “customer experience” to “cost reduction”. While we want to make sure we’re doing everything possible to make our customers happy, we also need to be aware of our need to watch costs and be more efficient in our processes. However, we never want to cut costs so much that we end up negatively affecting the customer experience. Before we can scale support and success services for better revenue generation, we first need to better optimize the organizational capabilities of the people, technology, and processes that make it all happen.
In this webinar, we discuss TSIA’s organizational capabilities model, which will help you better visualize the answer to the question, “Do you have the organizational capabilities to meet the challenge?”
service revenue generation,
technology support services
Today’s professional services industry faces the unique challenge of needing to transition from a solely product-driven business model to one that also provides services and customer outcomes. Recent industry surveys have shown that software is replacing hardware, cloud is replacing on-premise, and services are becoming more valuable than products, and any organization that fails to stay current with these emerging trends can find themselves struggling to stay afloat.
In this webinar, we covered the current industry trends driving this need for change, and how TSIA’s PS Benchmarking reports can show you how to accelerate your understanding of strengths and weaknesses, and provide you with the tools to move your business from a Level 2 supplier to a thriving Level 3 or Level 4 organization.
Adoption of professional service automation (PSA) is on the rise, and it can make a big difference to your operational success. According to TSIA PS benchmark reports, companies that incorporate PSA see higher billable utilization, better rate utilization, fewer days to staff projects, increased project margins, and lower field costs when compared to their industry peers.
Unfortunately, there continues to be a few misconceptions and outdated ideas about how beneficial PSA is for professional services organizations, which is keeping companies from realizing their full potential through automation. In this webinar, I joined Steve Beaumont, services market manager of TSIA partner Planview, to address common questions and dispel some of the myths about professional services automation.
professional services automation,
Dynamics within the technology industry are changing rapidly to focus on providing more service-based offerings to customers, but the shift can be both intimidating and slow going without a detailed plan in place. There’s been an industry-wide, 80 billion dollar reduction in revenue, and this can be attributed to both hardware and software companies simply not knowing what steps they need to take in order to become Level 3 and Level 4 suppliers focused on driving customer technology adoption and delivering business outcomes.
TSIA has introduced an expanded service revenue generation (SRG) membership program that now provides coverage for the emerging area of account expansion as well as its traditional focus on service annuity renewal. This addendum to our previous model includes brand-new strategies to help your company evolve and increase service-based revenue.
In this post, we’ll answer some common questions about what you can expect with this expansion and how TSIA can further help guide you down the correct path to developing new organizational capabilities.
service revenue generation
Comparing your company’s performance against that of your peers is key to not only getting an edge on the competition, but also maintaining the health of your organization. But just what is the industry standard baseline for managed services providers?
TSIA’s MS research team has collected and analyzed benchmark data from a core sample of managed services providers in an effort to create a starting point that will allow you to compare and contrast your company’s performance against others within your industry.
key performance indicator,
managed services sales