OnForce: Repair Services Outpace Installs in 2008

In a sign of the market slowdown, and the maturing nature of CE installations, OnForce reports that repair services were up 65 percent in 2008.

Twenty-one percent of the 300,000 work orders placed through the online marketplace Web site were for repair service on CE installations. OnForce has seen a strong migration in its services toward CE. It's original roots were only in IT.

The data was revealed as part of Boston-based OnForce's new OnForce Services Marketplace Index (OSMI) Year-End Report for 2008.

"Last year we saw a significant trend towards businesses and consumers fixing what they have and tightening their belts," says Peter Cannone, CEO of OnForce.

"This trend will continue across 2009. Businesses are looking to outsource more of their services in order to increase profit margins and cut costs. This is evident by the growth of both buyers and service work orders placed through our marketplace in 2008."

For 2009, Cannone predicts:

• Diagnosis and repair services will become a major focus for integrators as businesses are likely to continue delaying new equipment purchases
• Businesses/consumers that do purchase new technology will move towards less expensive brands or unbranded alternatives
• End-users will pressure vendors to cut prices even further
• Businesses will continue to outsource in areas such as corporate IT departments

"It isn't going to be easy, but there are opportunities for growth and success even in a down economy," says Cannone.

Other findings from the OSMI:

• 2008 saw a sharp increase in the "break-fix" — or repair — sector. Up to 65 percent of all work orders were break-fix
• Desktop computers, TV/Video and Point-of-Sale (POS) systems were the highest volume onsite service categories in 2008, accounting for more than 50 percent of all work orders
• CE accounted for four of the top five most expensive onsite services in 2008 (with the average cost per service of $250)
• Over the course of the Q4 holiday season, desktop computers ranked as the highest volume category for onsite service (over 22 percent of all Q4 work orders) with TV/Video coming in a close second with more than 21 percent of all Q4 work orders.