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Technician Business Tips

July 14, 2009

Crafting Tech Opportunities amid Economic Ruin

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Business-technology consumers are slashing IT spending. Companies are laying off workers by the thousands. And economists, finally declaring the U.S. is in a recession, are forecasting a down year for 2009. Amid all this bad news, solution providers are finding a silver lining in the economic storm clouds.

While IT solution providers may be seeing their business customers push out payments or delay deals, they are taking the now-confirmed recession in stride.

“It’s not like we are in the auto industry facing bankruptcy,” says Ken Lamneck, Tech Data’s president of the Americas, speaking about business and the current economy. “Our partners serve SMBs, and we are modeling low- to mid-single-digit growth for 2009—say 4 percent to 8 percent. As you go to the enterprise, there will be less than that.”

And IT solution providers attending IT distributor Tech Data’s recent TechSelect event in Washington, D.C., admit that signs of a down economy are evident, but are taking a wait-and-see approach to business. They say it’s like a “storm watch.”

“People are paying a little slower than in the past,” says Angela O’Donnell, managing director of New York-based W. O’Donnell Consulting, which specializes in the publishing industry.

“And they are a lot more cautious with spending,” says Jonathan Register, vice president of operations at Raleigh, N.C.-based Alphanumeric Systems, a solution provider that specializes in government customers.

IT solution providers that have shifted their business to a managed services or SAAS (software-as-a-service) model say business has remained steady. “We’ve put ourselves in a better place,” says Sam Ruggeri, president of Advanced Vision Technology Group in Hauppauge, N.Y.  “We haven’t seen renewals tail off.”

“We are looking at pitching managed services to smaller businesses,” says O’Donnell. “They are cutting back on IT staff and talking to us about how to fill the gap.”

“We are seeing the government extending refresh cycles from three to five years on the state level,” says Stephen Ale, chief operating officer at Fairfax, Va.-based Richards Computer, which also specializes in the government markets.

But projects are another matter, according to Ruggeri. And other solution providers agree.

“More projects are being put on hold,” says Debra Candido, vice president of administration at Manhattan Information Systems. “I feel like we are in a storm watch.  Is the storm going to hit us? Or is it not going to hit us?”

But as projects are deferred and the same old equipment must continue to be productive, Ale says that Richards Computer has noticed a pick up in its break/fix business.

And as the “storm watch” continues, these solution providers are implementing strategies to weather whatever comes ashore.

“We are doing tons of partnering,” says Ruggeri.

“We sent people to a customer training workshop,” says Ale. “Customers are going to be in a terrible mood. We don’t want to get pulled down with them.”

“The last recession we didn’t invest in training or new products, and that was a mistake,” says Candido.

But even with threatening clouds overhead, solution providers still see some bright spots.

“There are two clients I have that still have budget money they need to spend this year,” Ruggeri says. “I am cautiously optimistic.”

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Tech News

Field Solutions new Automated Contact Services redefine Web-enabled Service Order Management:

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Field Solutions, North America’s premier independent field service technician
resource, announces a suite of eight (8) new Automated Contact Services (“ACS Suite”) that sets a new standard in reducing clients’ service management costs, while speeding dispatch and improving the quality
control of outsourced field service. Real-time integration of SMS/Text messaging and IVR automated telephonic services into the work order management process allows clients to aggressively reduce service department costs while increasing field service contact, technician feedback, and real-time work order process control.

Field Solutions’ new ACS suite supports every step of the work order management process, from announcement through paperwork completion. Now Field Solutions’ automatic technician notifications and reminders, technician remote confirmation and status updates, and real-time service “alerts” for variation from performance expectations allows real-time quality monitoring, assurance, and action.

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Tech News, Technician Business Tips

OnForce’s Services Marketplace Index Reveals Consumers and Businesses Looking to Extend the Lives of Personal Computers and Desktops

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For the fourth consecutive quarter PC Desktop Repair sees highest volume of work orders;  Enterprises are using OnForce in creative ways to optimize efficiencies

BOSTON – July 13, 2009 – OnForce, the trusted online marketplace and national network of thousands of technology service technicians, today released the OnForce Services Marketplace Index (OSMI) for the second quarter of 2009. Based on more than 70,000 service events this quarter across North America, the OSMI provides a comprehensive analysis of key spending trends in information technology (IT) and consumer electronic (CE) services. Key findings this quarter show that spending in the break-fix sector from diagnose and repair to parts swap remained at a consistent high with Q1 2009, accounting for 63 percent of all work orders. In addition, OnForce saw enterprises utilize the platform more extensively to handle longer term projects in order to maximize efficiency.

In terms of highest volume categories, PC Desktop ranked first for highest work order volume for the fourth straight quarter in a row (accounting for nearly one third of all jobs.) Of this, three quarters were break-fix related work. Other high volume work categories for the quarter included TV/Video and Network, which accounted for 19 percent and 13 percent of all work orders respectively.

Check out the entire report here: http://www.onforce.com/OSMI/Q209

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