View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
February 15, 1999

SYSTEM SUPPORT A STRATEGIC, BUT UNPROFITABLE BUSINESS

By CBR Staff Writer

System support is still one of the largest IT services market and one of the most strategically important in Europe, despite being one of the least profitable, according to a new report from International Data Corp. Gross profit margins are continuing to decline in the sector, and IDC says the only way to halt the decline is increased operational efficiencies. Those who enjoy the highest margins are the companies focusing on supporting their own product lines, who can, to some extent, set their own prices. Companies supporting third party products face the tightest squeeze, particularly in the desktop space. Subcontracting low margin activities, minimizing stock, automating support processes and generating economies of scale are all cited as a means of increasing efficiency. But high availability support and support centered around internet-based electronic commerce infrastructures will be the keys to success in this market, concludes the report, Operational Efficiency in the System Support Market, Europe.

Content from our partners
<strong>Powering AI’s potential: turning promise into reality</strong>
Unlocking growth through hybrid cloud: 5 key takeaways
How businesses can safeguard themselves on the cyber frontline

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU