OnForce Services Marketplace Index for 2009 Shows Return to Stabilization in Latter Half, Beginning Signs of Growth
BOSTON, Jan 25, 2010 -- OnForce, the trusted online services marketplace that empowers businesses to find highly skilled local service technicians, today released the OnForce Services Marketplace Index (OSMI) for both the fourth quarter of 2009 and the full 2009 Year End Report. The OSMI provides a comprehensive analysis of trends in information technology (IT) and consumer electronic (CE) services based on thousands of service events across North America. For the Year End report, OnForce measured data from more than $150 million of services transacted through the OnForce marketplace throughout 2009.
Last year, OnForce saw two major trends in the marketplace. Early in the year work order pricing was tested as the economy wavered; later in the year work order pricing stabilized for three consecutive quarters. The marketplace also saw an uptick of installation work order for the second half of the year. Both aspects provide some positive signs for technology service businesses in the coming months.
Highlights for 2009:
Over the course of 2009, several observed trends were in line with OnForce's year end prediction:
"Fix not Buy" was the mantra as businesses opted to repair current equipment rather than invest in new purchases.
Overall, 62 percent of all work orders in 2009 were in the break-fix category.
Nearly 86 percent of TV/Video work and 78 percent of PC Desktop work orders were break-fix.
"Cheap Remained Chic" as customers turned to more affordable technologies such as VoIP.
VoIP/Telephony work volume grew nearly 200 percent from Q1 2009 to Q4 2009.
New installation work accounted for 73 percent of all VoIP/Telephony service events for 2009.
Customers became price kings and strongly influenced the cost of equipment and services.
In 2008, VoIP/Telephony was the highest revenue generating category at $500. In 2009, work order values in this category declined to $150.
Security and Wiring & Cabling service events were the most expensive work order categories, each surpassing $200.
"Many of these trends will continue during 2010 as businesses continue to tightly manage their IT spending," said Peter Cannone, CEO of OnForce. "We expect a moderate return to growth over the next few quarters as companies will continue to be cautious, and as many are still faced with an overstock of technology equipment."
"For VARs, 2010 is about getting closer to your customers; to be successful in this climate it is critical to listen to customers' needs, become their partners, and offer a broad portfolio of software and services abilities. At OnForce, we believe that it is important to drive a new standard of service excellence by partnering with our service buyers and technicians," concluded Cannone.
Download the full report here.