Research Report by Top Service Associations Reveals Urgent Need for Increased Investment in Services Research and Innovation

Declining Economic Outlook Demands a Breakthrough in Service Business Models
SAN DIEGO--(Business Wire)--
Results from an industry survey focusing on services research and innovation,
sponsored jointly by AFSMI, SSPA, TPSA, and the Service Research & Innovation
Institute (SRII), demonstrate that a clear "services innovation imperative" is
being confronted tepidly and tentatively, if at all, by most technology
companies. The groundbreaking results of the survey are revealed in a
just-released report titled The Services Innovation Gap: How Many Technology
Companies Are Failing to Respond to Fundamental Challenges to Their Business
Model.

Technology companies are under enormous pressure to improve the performance of
their service businesses. And this pressure could well increase over time. As
technology firms become more services-centric, they will be less able to meet
overall company and shareholder expectations without making serious, systematic
investments in services research innovation. However, the results of this study
suggest that many technology companies are failing to invest in the types of
services research and development initiatives that will likely help them respond
to the shifting ground and dynamic conditions facing them.

"This is a watershed moment for technology services, with the current pressures
on the economy and the ensuing financial models," stated J.B. Wood, CEO of
AFSMI, SSPA, and TPSA-the three leading associations of the services and support
industry. "We`ve ridden the current technology service business model as far as
it can go. It is time for technology companies to dramatically step up their
investment in services innovation, but few companies are. Those who do will find
returns on R&D dollars that can be faster and often greater than traditional
spends on software or hardware development."

This important report outlines the basic nature of this issue and provides
specific implications and recommendations for technology services providers. The
good news is that because the services research innovation bar has been set so
low, technology companies can likely make a big difference in service excellence
with only relatively modest investments in services research and innovation.
More information on this key industry report can be found at www.afsmi.com,
www.thesspa.com, and www.tpsaonline.com.

About AFSMI, SSPA, and TPSA

www.technologyservicesworld.com/association_info.php

About the Service Research & Innovation Institute (SRII)

www.thesrii.org

AFSMI, SSPA, TPSA
Suzanne Hite, 410-774-5322
suzanneh@afsmi.com

Copyright Business Wire 2009