Printer Friendly
The Free Library
23,416,918 articles and books


SYSTEM SUPPORT A STRATEGIC, BUT UNPROFITABLE BUSINESS.

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.
COPYRIGHT 1999 Datamonitor
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1999 Gale, Cengage Learning. All rights reserved.

 Reader Opinion

Title:

Comment:



 

Article Details
Printer friendly Cite/link Email Feedback
Publication:Computergram International
Geographic Code:4E
Date:Feb 16, 1999
Words:154
Previous Article:GLOBAL INTERNET BACKBONE WORTH $8BN, SAYS DATAMONITOR.
Next Article:FRENCH RETAILER CARREFOUR USES BRIO FOR WAREHOUSE.
Topics:



Related Articles
Market-driven success.
When can losses be deducted against S corporation basis?
Effort to Save Monticello Plant Fails.
TURKEY - March 25 - Turkish Airlines Announces Profit For 2001.
Beverly sees gain from shedding facilities.
Deregulation and fairness in transportation.

Terms of use | Copyright © 2014 Farlex, Inc. | Feedback | For webmasters