News

Computacenter services to take centre stage in 2009

Microscope contributor

Computacenter believes this could be the first year in its history that services contributions at group level overtake products margin and the largest reseller in the land reckons its days of pure box shifting are behind it.  

 

In a trading statement issued in early January, the reseller-come-integrator said services revenues in 2008 grew 6% year-on-year but more significantly it had won a number of services contracts that would positively impact 2009.

 

"Given our contracted services business, 2009 will be the first year at group level that we make higher contributions from services than products, it won't be a dramatic change but will be higher," said the firm's chief executive Mike Norris.

 

Customers are looking for ways to cut costs and are turning to services to assist with this aim the company said.

 

Product sales remained an important aspect of Computacenter's business mix but as part of a solution, said Norris.

 

"Clearly we make a lot of our money from services but to say we are a services company is pushing it a bit too far, we want to continue selling product but we have very few customers that buy only product and I expect that to diminish," he said.

 

As revealed last month, the UK operation has merged all product divisions into one business unit headed by director of services and solutions Mark Howling and staff will be rewarded more highly for services sales.

 

"Our people are incentivised to get the best returns on capital for the business and that comes from services," he said.

 

The company's 2008 preliminary financials are due on 10 March and they are expected to show that services accounted for around 48% of gross profit.


Join the conversation Comment

Share
Comments

    Results

    Contribute to the conversation

    All fields are required. Comments will appear at the bottom of the article.