Our client, a global manufacturer of barcode printer technology, was facing significant challenges arising from changes in both its product portfolio and wider market dynamics.
First, while there were diminishing numbers of legacy printer models left in active service, these still required full aftermarket support. This was essential, both to meet existing service level agreements (SLAs) and to maintain the company’s brand integrity and reputation.
Alongside this, new and ever-more reliable printer models required a more dynamic, flexible technical service and support offer than had previously been the case.
To meet these twin challenges, the company identified the need for a significant restructuring of its technical services and aftermarket support provision.
The company’s existing in-house technical service and support team was already finding it difficult to meet existing SLAs on, for example, preventative maintenance.
Further downsizing the in-house resources would only compound these service problems.
It also risked actually increasing the support costs per unit as economies of scale diminished.
All of this was further complicated by a wider strategic requirement to increase (rather than simply maintain) service levels, in order to meet rising customer expectations and maintain the company’s market leadership.
The company decided on an outsourced technical services solution which would allow it to reduce its fixed costs at the same time as meeting existing and future service level requirements.
A three-year outsource contract saw Qcom take on the management of 500 user contracts and c. 2000 printer units.
Seven service engineers covering the UK and Ireland territories were TUPEd to Qcom as part of the arrangement.
By outsourcing technical services and aftermarket support to Qcom, this technology manufacturer was able to restructure its technical service and support functions quickly and efficiently.
By TUPEing its experienced engineers to Qcom, the company was able to avoid the immediate financial and human costs of redundancies.
Longer-term efficiencies were created by converting fixed in-house costs to a more flexible cost model, able to take advantage of Qcom’s significant economies of scale.
With its specialist technical service and support infrastructure and resources, Qcom was able to quickly restore preventative maintenance levels in line with existing service level agreements.
In addition, we were able to introduce new 4-hour response time break-fix services and other enhanced service levels to reflect more agile requirements services needs of end-users in today’s highly competitive markets.
Outsourcing is a proven way for companies to respond quickly and effectively to changing market dynamics or strategic requirements. This is equally true whether the drivers are internal – such as the need to reduce costs – or external – the need to meet rising customer expectations or match competitor activity. Most often, as in this case, it is a combination of the two.
Qcom Managing Director