Discover how you can find highly qualified contract IT service professionals with the skill sets you need, when and where you need them, on demand. Get the free white paper, “8 Ways On-Site Services Can Drive Revenue Now,” featuring commentary from industry analysts and leaders like Gartner, IDC and CRN.
WHITE PAPER:
8 WAYS ON-SITE
SERVICE CAN
DRIVE REVENUE NOW
SEPTEMBER 2007
SMThe On-Demand Marketplace for IT Service Professionals8 WAYS ON-SITE SERVICE
CAN DRIVE REVENUE NOW
TABLE OF CONTENTSOn-Site Service: Today's Sales Multiplier .................................................................................................. p. 1The Stars Align Around On-Site Service .................................................................................................. p. 1Long-Standing Barriers ..................................................................................................................................... p. 3New Models Are Changing the Game ....................................................................................................... p. 38 Ways On-Site Service Can Drive Revenue Now ............................................................................... p. 5About OnForce ..................................................................................................................................................... p. 8
ON-SITE SERVICE: TODAY'S SALES MULTIPLIEROn-site service has always been core to solution providers' value proposition and revenue mix.But today, more than ever, new market trends, end-user needs, emerging business models, andinnovative on-demand service delivery models are combining to create innovation-drivenopportunity.
This white paper explores the tangible ways solution providers can leverage on-demandservice in order to expand their businesses, enter new markets, lower costs, and betterserve and satisfy customers..solution providers are following the FOR SOLUTION PROVIDERS, THE STARS ALIGN AROUND ON-SITE SERVICEmoney.right Recently, Vertical Systems Reseller conducted an exclusive study titled What Do Endto service. Users Want? Importantly, the study indicates that end users are seeking a "broader set- CRN of skills from one provider - or at least one that can seamlessly coordinate the work ofmultiple providers." Among the required skills: on-site service.
Of note, the study also states that there is a significant opportunity for solution providers to expand upon their competencies by delivering the high-margin services
1WHITE PAPER: 8 WAYS ON-SITE SERVICE CAN DRIVE REVENUE NOW
end users need around such major IT initiatives as implementations and rollouts. Anotherrecent report, this one published by CRN, offers additional and compelling evidence thatmany solution providers are transitioning from a traditional, hardware-driven mindset to"one that focuses.on solutions and related services." The reason for this shift is simple: agrowing opportunity to profoundly transform their profitability proposition.
WORLDWIDEIT SPENDING FORECAST2006 2007 2008 2009 CAGR 2004-2009ComputingHardware 367.2 368.1 371.5 375.4 1.1%
Software 106.4 113.6 121.6 130.1 6.7%
IT Services 671.3 710.9 754.8 800.1 5.7%
Telecom 1,601.9 1,682.7 1,750.8 1,782.5 4.8%
All IT 2,746.8 2,875.4 2,998.7 3,088.1 4.6%
MARCH 2005 ($B) GARTNERŪ
In the Canadian marketplace, this opportunity brings with it challenges. The good news isthat companies (particularly smaller ones) increasingly are looking to VARs for completesolutions, including products, integration, installation, training, service and on-goingsupport. Yet, according to Robert Cohen, President & Business Editor, Integrated mar.comCorporation, "Many VARs in Canada are too small to provide clients with this full array ofservices - particularly on-site or on-demand services in areas outside their geographiclocations or their core staff competencies. VARs who can't scale their services to meetclient needs across all geographies and skill sets are inviting their competitors to do so."The good news is In Cohen's view, VARs need this on-demand ability to access IT service professionals - orthat companies risk leaving opportunity on the table.are increasinglylooking to VARs WIth regard to the magnitude of the opportunity, the CRN report which is based onfor complete extensive market research, points to such key markets as VoIP, mobile technology,solutions. security, storage, printing and imaging, and custom systems that have services-to-- Robert Cohen, product revenue ratios ranging from $2:1 to as high as $5:1. According to CRN, solutionIntegrated mar.com Corporation providers should fo... [download for more]