The recession is having an effect on all companies, with a significant effect on investment. An area of concern in the service industry for a number of years has been the low level of investment in technology solutions – never exceeding 15% of the total investment. As a result the recessionary impact of this strangling of funds was not felt as heavily in the service operations and quite often reductions were targeted at more senior posts with a degree of flattening within the service departments, but relatively little or no reduction in technology investments. However most of the investment has been to more effectively use or upgrade what is already in place and not in new systems. Companies with a strategy that includes service continue to demonstrate a greater ability to weather the recession, as illustrated by the rate of return from service in Figure 1.
Figure 1
This latest review (April 2009) has confirmed that there has been little or no reduction in investment in service technology solutions based around mobile communication. In fact encouraged by overall price reductions investment has continued as the technology has become more cost effective – particularly as the telecom giants have seen the mobile solutions environment as an opportunity to increase speech, text and data volumes. A quick summary, of the results (outlined below) bears out these statements.
In summary the purchase or upgrading of mobile solutions has continued, supported by evidence that the solutions are providing increased value. Changing the use of the solutions to improve effective utilisation of front and back-office staff rather than just tracking engineers has had a profound impact on acceptance levels and speed of implementation.
Figure 2
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