News | August 11, 2009

OnForce's Services Marketplace Index Reveals Consumers And Business

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OnForce, the trusted online marketplace and national network of thousands of technology service technicians, today released the OnForce Services Marketplace Index (OSMI) for the second quarter of 2009. Based on more than 70,000 service events this quarter across North America, the OSMI provides a comprehensive analysis of key spending trends in information technology (IT) and consumer electronic (CE) services. Key findings this quarter show that spending in the “break-fix” sector – from diagnose and repair to parts swap – remained at a consistent high with Q1 2009, accounting for 63 percent of all work orders. In addition, OnForce saw enterprises utilize the platform more extensively to handle longer term projects in order to maximize efficiency.

In terms of highest volume categories, PC Desktop ranked first for highest work order volume for the fourth straight quarter in a row (accounting for nearly one third of all jobs.) Of this, three quarters were break-fix related work. Other high volume work categories for the quarter included TV/Video and Network, which accounted for 19 percent and 13 percent of all work orders respectively.

“As evidenced by the overall drop in PC shipments this year, it is clear that businesses and consumers are still opting to repair and retain, rather than purchase new equipment for the time being,” said Peter Cannone, CEO of OnForce. “Although we are seeing cautious behavior in a challenging economy, there are signs of a turnaround including the stabilization of work order pricing in our Marketplace.”

Other key findings include:
  • While high in terms of overall completed work orders, TV/Video experienced the largest decline in volume this quarter. The category saw a four percent loss, from 23% in Q1 to 19% in Q2. This can be partially attributed to businesses and consumers opting to repair or install converter boxes for the Digital TV transition, rather than install new television sets.
  • Hourly rates for Home Theater onsite service continued to be priced higher than all other CE categories.
  • The “Other” category accounted for nearly 8% of all work order volume this quarter due to an increase in micro staffing and project related work among enterprises.
  • Average work order value for both VoIP/Telephony and PC Desktop dropped significantly over Q1 2009.
    • Work order values declined from $359 to $271 in the VoIP/Telephony category
    • Work order values declined from $114 to $101 in the PC Desktop category
  • Houston, Chicago, and New York saw the most onsite service volume for the third quarter in a row.
  • Kentucky, West Virginia, and Maryland were the least expensive states for onsite service in Q2, a shift from Q1 when Ohio, Indiana, and Massachusetts were the least expensive states.
    • Massachusetts saw a marked uptick in pricing for onsite services, jumping to #16.
“Due to economic conditions, we are seeing enterprises using the OnForce platform for more nontraditional service events,” noted Cannone. “With companies looking to maximize efficiencies across the board in a down economy, we expect this to be an increasing trend over the next year.”

The OSMI Q2 2009 report is available for download at http://www.onforce.com/OSMI/Q209.

About OnForce

OnForce is service made simple. The company provides access to a trusted national network of over 13,000 onsite service technicians connecting service demand with local supply through an online marketplace — easily, efficiently, and profitably. Nearing one million completed service orders, OnForce is a proven leader in helping service buyers increase profits, gain a competitive advantage, and contain service costs. The OnForce community is made up 5,000+ IT and CE service buyers and more than 13,000 service technicians who work in a number of technology categories, including computers, printers, networking, VoIP, point of sale, and consumer electronics. For more information, visit www.onforce.com.
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