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Guide to Packaged Services
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A Guide to Packaged Services
Publication date: 7/07
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Lately, technology companies have been rolling out new “packaged
services” at a rapid rate. Though vendors are still experimenting
with implementation approaches, the basic elements are fairly
standard—a fixed scope (usually focused on a single task),
a fixed price, and a standardized methodology.
Of course, many traditional technology services—for instance,
maintenance, warranties, and training—have always been sold in
relatively standardized configurations. The more interesting trend,
however, is that the packaged service model is now being used as a
framework for portfolios of extended post-sale services. There is
a growing industry consensus that customers are willing to spend
money across the whole life cycle of product ownership, often in
areas where they need strategic business expertise rather than
traditional break-fix technical help. Packaged services look like
a good way to grow services revenue rapidly.
So far, most packaged services offerings have been relatively
small, at least compared to the big integration and deployment
contracts that have traditionally dominated the industry’s
professional services business. This seems to be a sensible
approach: For the customer, buying a standardized “best practices”
solution short-cuts the protracted cycle of proposals, bidding,
and contract negotiations that can bog down customized deals, and
also reduces the risk of failure. And for the vendor, the ability
to deliver the same service over and over again tends to create
efficiencies that can translate into exceptionally high margins.
Smiles everywhere.
What does it take to create successful packaged services? We’ve
been looking at this issue for several years, and recently we
asked ASP members and friends to share some of the lessons they’ve
learned about this new services model. This report provides an
overview of important strategies and tactics for developing a
portfolio of packaged services offerings.
- Identifying a compelling need
- Developing a services design template
- Designing a structured delivery process
- Sidebars: Examples and best practices
Copies of the survey are free to ASP members in the
members-only area.
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