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NelsonHall Reveals Findings of New Research into the End User Workplace Services Market
Key findings revealed in the NelsonHall research report include: — The market for outsourced EUWS is fairly mature in North America and Western Europe and many buy-side organizations are on their second contract in this area, or expecting to renew between 2008 and 2010. There is widespread buy-side interest in taking advantage of cost savings from increasing remote management of device estates, access to self-help portals and the use of lower-cost, off-site support staffing and help desks. — By 2012, EUWS revenues will move from a managed service installed base dominated by traditional offerings to an installed base dominated by remote managed offerings. Movement from traditional offerings to remote managed offerings within existing contracts is unlikely to occur until those contracts are ready for renewal. — The European market is slightly ahead in the adoption curve for remote managed EUWS because some key local vendors such as Getronics, Siemens, and Fujitsu Services have been active in the market with more advanced service offerings for longer than the large global providers that dominate the American market. — Green IT audits and advice will become a standard component of EUWS offerings as increasing numbers of buy-side organizations wish to market themselves as ethically responsible and environmentally aware. — The virtualized provisioning of thin-client end-user devices will begin to change the EUWS market but development will be constrained until 2010+ by the need to re-engineer application estates. — The strongest service growth in EUWS will come from network-centric or unified communications-based services, which will grow from c. 4% of the EUWS market in 2007 to reach c. 20% of the market by 2012.
"Key challenges for the development of the EUWS market are moving end- users away from reliance on on-site support, negotiating new pricing models, and developing flexible contract structures," said Ring. "In the traditional EUWS model, a significant proportion of on-site support and/or local field services personnel are required. This is the main cost component that is reduced with a virtualized service delivery capability. On average, the field services component can contribute 40-50% of the total cost of the traditional EUWS contract. This cost is not eradicated by a virtualized model but it can be reduced by c. 30% so that it comprises around 15 - 20% of total costs."
NelsonHall's research finds that the critical success factors for EUWS vendors include:
— having offerings that are flexible and modular — an EUWS portfolio that provides consultancy and application modernization services — a \"Green IT\" advisory service for EUWS
"Many vendors currently lack a green IT advisory service within their EUWS portfolio," warned Ring, "and yet this will become an increasing buy-side requirement. Particularly as the ability to offer green IT audits and advice for EUWS clients will also assist organizations looking to adopt low cost thin-client solutions."
NelsonHall's study addresses topics such as the changing shape of EUWS offerings, the impact of virtualization on the EUWS market, trends in remote delivery and field service support and the capabilities of key vendors in the market.
The "Assessing End User Workplace Services" study is available now as part of NelsonHall's IT Outsourcing program. Information about this program is available by contacting the following NelsonHall representatives:
— Rob Hughes: rob.hughes@nelson-hall.com or +44 (0) 870-770-5967 — Paul Connolly: paul.connolly@nelson-hall.com or +44 (0) 870-770-5967
About NelsonHall
Founded in 1998, NelsonHall is the leading global independent analyst firm in Business Process Outsourcing (BPO) and outsourcing. The company provides buy-side and sell-side organizations with deeper research and analyses in major BPO disciplines, as well as ITO, than any other research firm in the world. The company's subscription-based model provides subscribers with robust market analyses, case studies, vendor assessments, contract analyses, market reports and access to a content-rich BPO and ITO contracts database. The firm covers a wide range of industries, including financial services, government and utilities sectors, and tracks worldwide and regional BPO and ITO activity. For more information on NelsonHall, please visit http://www.nelson-hall.com.
SOURCE NelsonHall
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