By Julie Giera,
Of the top 35 global IT vendors, 22 are either services providers or product companies with a large services business like IBM. This shift to services has been accelerating over the past five years among technology vendors looking to drive recurring revenues, deeper customer relationships, and additional channels for their products. Building a great services business is tough for many technology vendors, because the things that contributed to their success as product companies are the very things that can be their downfall in services. Forrester has identified the top ten strategies technology vendors can employ to build a great IT services business.
- Stick to services that closely tie in to your products’ strengths.
- Organize for services separately from products.
- Hire experienced sales people.
- Limit the services portfolio.
- Automate the proposal process.
- Market your message through multiple channels.
- Limit risk in very large contracts.
- Develop the channel and deal with conflict early.
- Weigh a direct service model against a subcontracting arrangement.
- Know your value proposition: Wal-Mart or Tiffany’s?