The Impact of Downsizing on Customer Services Organisations Europe 1992

126 Pages·1992·9.1 MB·English

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I
MAY
1992
THE IMPACT OF DOWNSIZING ON
CUSTOMER SERVICES ORGANISATIONS
EUROPE
1992
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INPUT
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Sudetenstrasse D-6306 Langgons-Niederkleen, Germany + 49 6447 7229
9,
THE IMPACT OF DOWNSIZING ON CUSTOMER SERVICES ORGANISATIONS INPl
Published by
INPUT
Piccadilly House
33/37 Regent Street
London SW1Y4NF
United Kingdom
Customer Services Programme - Europe 1992
The Impact of Downsizing on Customer Services Organisations
- Europe 1992
Copyright (c)1992 by INPUT, All rights reserved.
Printed in the United Kingdom.
No part of this publication may be reproduced or
distributed in any form or by any means, or stored
in a database or retrieval system, without the prior
written permission of the publisher.
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within the current corporate structure of INPUTs clients, and will not be disclosec
to any other organisation or person including parent, subsidiary, or affiliated
organisations without prior written consent of INPUT.
INPUT exercises its best efforts in preparation of the information provided in this
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INPUT shall have no liability for any loss or expense that may result from
incompleteness or inaccuracy of the information provided.
CEDT2 600 1992
• •
INPUT
Abstract
Downsizing is affecting the Computer Services Industry at all levels
and in all sectors. Equipment suppliers are expected to provide
capabilities equivalent to their traditional central hosts by using
multiple small systems organised in co-operative networks, field
service organisations are required to maintain multi-site, multi-vendor
networks (with equivalent or superior grades of service contract to
those for the systems they replace) on progressively lower budgets;
software producers are expected to provide open systems products and
applications at prices which match the levels set by the downward
pressures of new technology.
INPUT'S report on the Impact of Downsizing on Customer Services
Organisations examines the strategic moves by vendors to supplement
their traditional maintenance and support services with new services
which address a number of new areas. In Europe a major new service
sector is opening up to provide services to the desktop end user. Both
systems and equipment vendors, and the independent maintainers are
developing services for this market-place. This report describes those
efforts and the strategies behind them. The opportunity is sized and
forecast for five years ahead. The strengths and weaknesses of
offerings from selected vendors researched are also discussed.
Vendor recommendations are made to enable clients to plan their
market entry programmes.
Copyright 1992 by INPUT. Reproduction Prohibited.
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- CAT. No. 23-108 PRINTED IN U. S. A.
1
THE IMPACTOF DOWNSIZINGON CUSTOMER SERVICES ORGANISATIONS INPUT
Table of Contents
Introduction I-l
A. Objectives and Scope I-l
B. Methodology 1-2
C. Definitions 1-2
D. Report Structure 1-3
Executive Overview II-l
A. Users Squeeze Traditional Services II-
B Users Demand Desktop Services II-3
.
C. The Challenge to Equipment Suppliers II-6
D. The Challenge to Independent Maintainers II-8
E. Threats from Other Vendors 11-10
Repositioning for Non-Traditional,
Non-Maintenance Services III-l
A. Market Shape HI-l
B Changes in the Installed Base for Maintenance 111-3
.
C. Satisfying Emerging User Requirements ni-6
D. Vendor Performance ni-9
CE-DT2
Copyright 1992 by INPUT. Reproduction Prohibited.
THE IMPACTOF DOWNSIZING ON CUSTOMER SERVICESORGANISATIONS INPUT
Table of Contents (Continued)
IV L^ornponenis oi a uesKiop oervit.e TV-1
A. Equipment and Network Supply and Maintenance IV-2
B Installation and Training IV-3
c
C, Supply and Support of Application Software IV-4
D. Help Desk Services IV-5
E. Planning and Administration IV-6
F. Network Enhancement IV-7
G
Application Development IV-7
.
H. Outsourcing IV-9
V
User Requirements for Desktop Services V-1
I
A. Driving Forces V-1
B The Vendor Selection Process V-4
.
VI Vendor Profiles VI-1
I
A. Digital VI-1
B. Hewlett-Packard VI-4
C. PrimeService VI-7
Network Planning and Design VI-7
1
.
2. Multi-Vendor Services VI-8
3 Desktop Services VI-8
.
D. THORN EMI Computeraid VI-10
VM2
E. Data Logic
.
F. Information Systems Networks Limited (ISN) VI-13
VIM
^y^—^ The Opportunity
A. Market Size and Growth VII-l
B. Principal Vendor Strategies VII-5
C. Critical Success Factors VII-IO
Copyright 1992 by INPUT. Reproduction Prohibited. CE-DT2
THE IMPACTOF DOWNSIZING ON CUSTOMER SERVICES ORGANISATIONS INPUT
Table of Contents (Continued)
Appendices Definition of Terms A-1
A. Introduction A-1
B Overall Definitions and Analytical Framework A-2
.
L Information Services A-2
2. Market ForecastsAJser Expenditures A-3
3. Delivery Modes A-4
4. Market Sectors A-4
5. Trading Communities A-5
6. Outsourcing A-5
C. Delivery Modes and Submodes A-1
Software Products A-7
1.
a. Systems Software Products A-9
b. Applications Software Products A-10
Turnkey Systems A-12
2.
3. Processing Services A-13
4. Systems Operations A-14
5. Systems Integration (SI) A-15
6. Professional Services A-18
7. Network Services A-20
a. Electronic Information Services ~^ A-20
b. Network Applications A-21
8. Equipment Services A-22
D. Computer Equipment A-22
E. Sector Definitions A-23
Industry Sector Definitions A-23
1
.
2. Cross-Industry Sector Definitions A-27
3. Delivery Mode Reporting by Sector A-29
F. Vendor Revenue and User Expenditure Conversion A-31
B. Economic Assumptions B-1
^
A. European Exchange Rates B-3
B. European Inflation Rates B-5
C. Vendor Questionnaire C-1
D. User Questionnaire D-1
CE-DT2
Copyright 1992 by INPUT. Reproduction Prohibited. iii
THE IMPACTOF DOWNSIZING ON CUSTOMER SERVICESORGANISATIONS INPUT
Exhibits
-1 IT Customer Services n-2
-2 Key Characteristics of Desktop Services n-5
-3 Desktop Services Markets in Europe, 1992-1997 n-6
-4 Equipment Supplier Strategies n-8
-5 Independent Maintainer Strategies n-10
.6 Recommendations n-10
-1 Status of Current Extended/
Non-Traditional Services Market ni-2
2 Changing Distribution of User Installed Base
by Equipment Class, 1992-1997 ni-3
-3 Perceived Importance of Traditional
and Non-Traditional Services to Users ni-5
-4 Service Business Attributable to New Offerings ni-6
-5 Vendor Product Innovation and Roll-Out ni-7
-6 Assessment of Vendor Performance Compared
to User Rating of Category Importance ni-8
IV - 1 Traditional Desktop Services IV-3
- 2 Delivery of Help Desk Services, Desktop Services,
Europe IV-6
- 3 Extended/Non-Traditional Components
of Desktop Services IV-8
- 4 Degree of Outsourcing by Service Element IV-9
V
- 1 Driving Forces, Desktop Services, Europe V-2
I
- 2 Technological Driving Forces, Desktop Services,
Europe V-3
3 Market Inhibitors V-3
-4 Buying Process V-5
-5 Contract Length V-5
.
- 6 Vendor Selection Criteria V-6
i V Copyright 1992 by INPUT. Reproduction Prohibited. CE-DT2