Technology Service Providers in Recession Where Do You Fit

Technology Service Providers in Recession Where Do You Fit   No Title Lower PricingWork order prices in 2009 fell about 30 percent compared to work orders in 2008. OnForce reports now that work order pricing has been stabilizing for the past three quarters, indicating that we’ve hit bottom. No Title Fixing the OldBusinesses looked to […]

Written By
thumbnail Jessica Davis
Jessica Davis
Jan 25, 2010
Channel Insider content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More

1Technology Service Providers in Recession Where Do You Fit

 

2No Title

Lower PricingWork order prices in 2009 fell about 30 percent compared to work orders in 2008. OnForce reports now that work order pricing has been stabilizing for the past three quarters, indicating that we’ve hit bottom.

3No Title

Fixing the OldBusinesses looked to fix instead of replace…62 percent of all work orders in 2009 were in the break-fix category.86 percent of TV/video work and 78 percent of PC desktop work orders were break-fix.

4No Title

Looking to Technology to Save MoneyCustomers looked to more affordable technologies such as voice over IP (VoIP). VOIP and telephony work volume grew nearly 200 percent from the first quarter of 2009 to the fourth quarter of 2009.73 percent of all VoIP/telephony service events were new installation work.But work order value dropped sharply from $500 in 2008 as the highest revenue generating category at OnForce to just $150 in 2009.

5No Title

The Highest Paid WorkSecurity and wiring and cabling service events ranked as the most expensive work order categories in 2009, each surpassing $200.

6No Title

VARs DiversifyAbout 15 to 20 percent of VARs that provided technology services to businesses diversified by offering consumer electronics services including home theater installations and HDTV installations and warranty work.

7No Title

Unemployment Changes the MarketAs unemployment rose like flood waters around the country so did applications to OnForce’s technician database. OnForce estimates its technician applications doubled in 2009 compared to the year before.

8No Title

High-Priced Talent’s Free AgencyAt the same time applications increased, the caliber of technicians available also rose with Cisco, Oracle and VMware engineers joining the technician database.

9No Title

New Projects? Forget About It!New project work slowed to a crawl as workforces shrank and required fewer computers. IT organizations stacked the unused desktops and laptops in the closet.

10No Title

Still Waiting for the RefreshAt the start of 2010, OnForce saw no signs that the anticipated technology refresh of PCs and servers was happening anywhere.

11No Title

Work Order Volume StabilizesWork order volume also continued to stabilize in the fourth quarter of 2009, with installation work increasing by 3 percent.

12No Title

Mix of Job Types – Installations vs. Break-FixTotal service events in the fourth quarter…35 percent installation service events.59 percent break-fix events.

13No Title

Work Order Volume by TechnologyFor the fourth quarter of 2009 the top four categories in work order volume were:PC Desktop: 27 percent (down 3 percent from Q3)TV/Video: 17 percent (relatively flat)Network: 16 percent (relatively flat)Printer: 10 percent (relatively flat)

14No Title

Cheapest States to Hire TechniciansOklahoma, Vermont, and South Dakota were the least expensive states for onsite services in Q4, a shift from Q3 when Maine, New Hampshire, and Nevada were the least expensive states.

15No Title

Cities with the Highest Demand for TechniciansHouston, New York, and Chicago saw the most onsite service volume in fourth quarter of 2009, for the fifth quarter in a row.

Recommended for you...

Video: Why Women Are Leaving Tech – And How BouncePoint Plans to Stop It
Katie Bavoso
May 2, 2025
Video: Davin Jackson: The Cheat Code To A Career In Cybersecurity
Katie Bavoso
Jan 23, 2025
The IT Job Market in 2024: MSPs and MSSPs in Review
Jordan Smith
Jan 7, 2025
Video: The Three Pain Points Holding Back High Capacity Leaders
Katie Bavoso
Jul 25, 2024
Channel Insider Logo

Channel Insider combines news and technology recommendations to keep channel partners, value-added resellers, IT solution providers, MSPs, and SaaS providers informed on the changing IT landscape. These resources provide product comparisons, in-depth analysis of vendors, and interviews with subject matter experts to provide vendors with critical information for their operations.

Property of TechnologyAdvice. © 2025 TechnologyAdvice. All Rights Reserved

Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.