[Infographic] Why Managed Services Organization Structure Matters
1 like1,595 views
The 2017 TSIA managed services benchmark study reveals that managed services have grown significantly, accounting for over 50% of total tech revenue, compared to just over 33% in 2011. The study highlights that managed services revenue grew from 6% to 23% of total services revenue between 2013 and 2017, indicating a shift in priority for tech CEOs. Additionally, dedicated managed services sales and client management strategies are shown to positively impact revenue growth and contract renewal rates.
[Infographic] Why Managed Services Organization Structure Matters
- 1. SOURCE: TSIA 2017 Managed Services Benchmark Study© 2017 All rights reserved. Technology Services Industry Association (TSIA) Will there be a better model in the future? Stay tuned: www.tsia.com/ms MS is growing faster than any other service FACT #1 WHY ORGANIZATION STRUCTURE MATTERS In 2011, services revenue was a little more than 1/3 of total tech revenue. In 2017 it is greater than 50%. FACT #2 SOLUTION #1 SOLUTION #2 PROBLEM Most tech companies are not optimized for managed services revenue growth 38% 56% 2011 2017 2013 2017 Services are now a top priority for CEOs From 2013 to 2017, managed services revenue grew from 6% of total services revenue to 23%. SOLUTION #3 Dedicated MS Client Management GENERAL SALES 30%22% DEDICATED MS SALES Revenue Growth when using Operating Income/EBIT when delivered by 30 25 20 15 10 5 0 30 25 20 15 10 5 0 OTHER SERVICES 17% 5% MANAGED SERVICES SERVICES SALES 89%GENERAL SALES 94%DEDICATED MS SALES Contract Renewal Rate when using 0 10 20 30 40 50 60 70 80 90 100 30 25 20 15 10 5 0 6% 23% THE AVERAGE NET-NEW MANAGED SERVICES Revenue Growth Rate is 27%! Dedicated MS Sales Dedicated MS Delivery 80%