Excellent Growth Perspectives for the Technology Services Industry

Technical services can produce substantial revenue growth, but achieving profitable growth requires a smart service strategy. A new study from Downton Service Management Consultants examines the strategies of successful service operations and how they produce revenue and profit growth. 41% of the surveyed companies concentrate on services of high added value or focus on the personal relationship with customers. Over 50% of these companies foresee more than 10%, revenue growth with one third expecting more than 20% revenue growth in the next years and nearly 40% of these firms estimate their annual margin growth to be more than 10%.

The respondents indicated they deploy one of the following strategies:

18% focus on brand driven, high value added services

23% focus on people driven, relationship-based services

31% focus on feature driven, high performance services offering more benefits

16% focus on price driven, high performance services at the lowest possible price

8% of service-organizations remain as a cost center

4% are moving from a cost centre to a profit centre strategy

The study was designed together with senior executives in round-table meetings and 180 companies in Europe and North America participated.

More information on the service and support industry can be found at www.supportindustry.com.