SERVICEMAX New Research Says Field Service Will Be A Primary Revenue Driver By 2018
86% of Companies Say Field Services Will Become A Primary Revenue Driver In 2 Years, With 73% Already Citing Positive Impact of Field Service Management on Profitability
new independent report says field service will become a primary revenue driver for organisations by 2018, according to a study from Vanson Bourne, commissioned by service management specialist ServiceMax.
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The research surveyed 200 IT and field service decision makers in US, UK, France and Germany in companies of all sizes with customer field service departments. The study found that 86% of companies state field services will become a primary revenue driver for their organisations in an average of 24 months.
“Fuelled by the shift to outcome-based service models, shrinking product margins, and globalisation, industry watchers have been predicting that service revenue will eventually eclipse product revenue,” said Callum Budd, Project Manager at Vanson Bourne. “This is something echoed in our own research findings as 73% of businesses already cite field service management as having a positive impact on their organisations profitability, and 47% say field service management reduces costs.”
Most manufacturers have spent the best part of the last 50 years making sure they can efficiently make good products and their reward is a profit margin at the point of sale. The problem is that those profit margins are getting thinner and thinner. In a globally competitive market, many products are now commoditised, and with such tightly squeezed margins it’s diminishing the leverage from this sort of production-centric approach.
“Senior management are realising that service is the hidden gem within their organisations, which is something we’re already seeing in our own global customer base,” said Spencer Earp, Senior Vice President EMEA and Asia Pacific for ServiceMax.
Spencer Earp Senior Vice President
As companies begin to properly monetise their service departments, they have the opportunity to increase service revenues even further by supporting existing third party or competitive products. This creates an ongoing relationship with the customer that effectively locks out competitors, and provides an effective hedge in a downturn economy. Download a copy of the report here
http://lp.servicemax.com/PR-Research-Reports-Vanson- Bourne-Survey-2016.html
ServiceMax Europe Ltd 020 3846 7320
www.servicemax.com
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