In my last entry, I provided a framework for classifying and tracking trends in the technology services industry. In this entry, I want to identify nine key trends that TSIA predicts will impact the industry. I also want to provide you an opportunity to voice your opinion regarding what trends you feel we should be tracking.
These are trends that will impact the performance metrics and results of a technology services business.
- Cloud computing: Impact of cloud computing on product-service revenue mix of hardware companies. I discussed this trend in the previous blog entry: Death of the 99.9999 Value Prop
- Commoditization: Hardware companies are facing continued erosion of product margins. This erosion is putting more intense pressure on service organizations to deliver both revenues and margins. This trend was discussed in Product Provider Perils.
- Pricing pressure: Survey work this year tells us that a clear majority of support organizations are facing intense pressure regarding their maintenance pricing and value proposition.
These are trends related to the business practices employed by technology service organizations to optimize their businesses.
- Managed Services: Managed services have become one of the fastest growing service lines within product companies. How common will the practice become for product companies to offer managed services directly to customers?
- Convergence: Converging service organizations and offerings to maximize economies. Service organizations are under immense pressure to optimize expenses.
- Globalization of the services delivery workforce: Well beyond support services, other service lines such as professional services have been forced to leverage global delivery models to optimize labor costs, scalability, and consistency.
These trends related to buying preferences of customers consuming technology services.
- Value Add Services: These are services to accelerate the value of a technology investment. How important are these types of offerings becoming to technology consumers?
- Social Media: How strong is the preference of technology consumers to use social media platforms to resolve problems? ? As social media applications continue to aggregate users, users are beginning to help each other. We discussed this trend of “crowdsourcing” to solve complex problems at our 2009 conference in Silicon Valley. How will technology service organizations adjust delivery practices to leverage these emerging user communities?
- Willingness to buy services: Enterprise markets have stagnated in this global downturn. Will consumer and small business customers be willing to purchase technology services? What types of services at what price points?
The summary of these nine trends is shown in the image below.
Now, time for your input. Which of these trends do you personally feel will have the greatest impact on technology service organizations over the next five years? Are there other trends you feel will be more impactful? Then write them in. Take a moment and voice your opinion.