Should you change your service delivery model?

Should you change your service delivery model?

Customers are increasingly questioning the value of product-related services and price pressure on product support services is increasing. However, many companies cannot afford to follow the reduced prices tactic as they will suffer from reduced profit margins. Developing advanced services is a much sought-after solution for adding value for customers, but in most cases they have to be financed by your current portfolio of product-related services.

Many companies, therefore, have little real option other than to go back to the drawing board and revise their service models. What they really need to do is reengineer their service models to create Low Cost but High Value services.

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