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The use of third-party field service providers is a hot topic for all equipment manufacturers. Outsourcing to a third-party provider continues to be one of the most inquired about business challenges that we receive in the TSIA Field Service research practice. This is a huge topic that is applicable to nearly every organization: 9 out of 10 Field Service organizations outsource some or all their operations.
Percentage of Outsourced Field Service Operations
TSIA has provided a number of insights on the topic on how to successfully partner with third parties for field service outsourcing, including, including a blog post and conference keynote.
NI, one of TSIA’s industrial equipment members, was tasked with scaling their global field service organization to keep pace with growth. Their customer expected global quality and consistency, proficiency, and high system availability, which required nimble scalability and cost-effective delivery.
Historically, for support needs, staff was borrowed from other departments or freshly hired. Borrowing support could wear its welcome out quickly, and option two was expensive and not a quick fix. NI settled on the matrix below to help guide the decisions for staff sourcing based on volume and complexity.
One of TSIA’s partners, Field Nation, discussed ways to make direct employee resources more efficient. The idea is that sometimes to do more, you must do less. The actions that you deem you must do less of are prime for outsourcing.
The image above describes the ROI model as a way to frame the outsourcing thought process. The key is to align the type of resource with the value, the location, and the variability of the work.
The Service Delivery Segmentation Pyramid featured below provides a methodology to guide choices for what to outsource, and the results can fund the upskilling and creation of the new Field Solution Engineer. The layers incorporate the points of both NI and Field Nation’s presentations mentioned above.
Utilizing third parties for field service operations is here to stay. It requires focus and management to be successful.
TSIA will be providing a research paper in the fall of 2021, which will go into more detail about the research conducted and subsequent strategies to help manage third-party providers.
At our upcoming Technology & Services World Conference October 18-20, we will also convene a panel to discuss best practices, strategies, and future initiatives around using third parties for field service activities
For more information about Field Services and how membership can help you solve your most pressing business challenges, contact TSIA today.
July 27, 2021
Topics discussed in this post
The Technology & Services Industry Association (TSIA) is dedicated to helping technology and services organizations large and small grow and advance in the technology industry. Find out how you can achieve success, too. Call us at (858) 674-5491 or we can call you.