News and Events
ServiceSource Reports Strong Demand for Maintenance and Support Contract Renewal Services and Record Revenue in 2008; Company Gaining Foothold into Healthcare Industry
ServiceSource cites technology industry's laser-like attention on protecting existing customers during the downturn as driving factor.
4 March 2009, San Francisco, CA — ServiceSource, a San Francisco, CA-based Service Performance Management leader for the high-tech industry, today announced its growing roster of technology clients in 2008 and strategic expansion into new vertical markets in 2009. As technology markets mature amid a depressed economy and IT companies invariably reign in spending on new products and licenses, ServiceSource has reported a steady stream of customer wins resulting from its focus on service share, the percentage of a company's total revenue opportunity captured from services and support. In 2008, the company grew at a rate of over 35% and achieved record revenue.
ServiceSource attributes its traction in 2008 to the tech industry's heightened need for a predictable, constant annuity revenue stream as protection during this bleak economic period. According to industry experts the total support and maintenance offerings in North America generate approximately over $150 billion a year, but technology companies typically capture less than 80% of this potential annuity stream, leaving more than $30B in potential incremental revenue on the table.
“The need to protect your customer base in these times cannot be emphasized enough,” said Mike Smerklo, Chairman and CEO, ServiceSource. “We've found that financial growth can indeed be found in unexpected areas of your balance sheet: support and services contract revenue. Increasingly we are hearing from our customers that the support and maintenance business is acting as a safe haven in these turbulent times, and we are here to help them protect and grow this vital part of their business.”
Key highlights from ServiceSource's momentum and growth in 2008 include:
- Addition and expansion of 16 new relationships with industry leaders in hardware, software, storage, and healthcare IT, including NEC, Avaya, GE Healthcare, Affymetrix, and Riverbed.
- The introduction of the Service Share Index, an industry benchmark to help companies' measure support and maintenance contract revenue opportunities and subsequently increase the amount customers spend on services. The Service Performance Management Report is published quarterly by ServiceSource to help companies benchmark their performance and watch industry trends.
- Announcement of a second European Service Center and expansion into APAC in the first half of 2009.
Jennifer Lescallett, Director of Technical Support from Affymetrix says, “The ServiceSource team is singularly focused on driving the entire service deployment process from start to finish. They are highly skilled and efficient at getting all the stakeholders on the same page and never lose sight of the ultimate goal of driving revenue for our company.”
Mr. Smerklo remains optimistic for the future of ServiceSource and the industry. “In my recent conversations with clients and industry leaders, it is clear to me that service and maintenance can continue to be an area of positive growth and profitability, and has the potential to help companies survive during these times”, said Smerklo. “There's no better time to invest in this part of your business.”
For further information please visit www.servicesource.com or call 415.901.6030.
For further information:
Kerry McGowne, ServiceSource, Tel: 415.901.8927 kmcgowne@servicesource.com
Nadia Guerirem, Bite Communications, Tel: 415.365.0391 Nadia.Guerirem@bitepr.com
About ServiceSource
ServiceSource is the service revenue performance company. We partner with technology, healthcare, and life sciences companies to maximize maintenance, support, and subscription revenue while optimizing customer loyalty. We increase contract renewal rates for clients on average by 10–25 percentage points — and in some cases by up to 40 points. These dramatic results are achieved via a purpose-built service revenue solution, including a suite of cloud applications and managed services built on a proprietary technology platform, which combines the industry's most robust data management engine and a unique service revenue master, leveraging our deep knowledgebase of benchmarks and best practices. Our solution delivers proven results through a 100% pay-for-performance business model that enables a success–driven, shared–risk partnership. Headquartered in San Francisco, ServiceSource has $5 billion in service revenue under management.
For more information on ServiceSource, visit www.servicesource.com or call: 415.901.6030.