The Significance of Service Catalogue

Limesh Parekh highlights the importance of service catalog and lays down one more best practice every system integrator should implement and practice

There is always a bone of contention when something is not defined. When system integrators blame customer for short-changing service provider, they conveniently forget their own limited communication in the urgency to close the order. The customer is probably not justified in making assumptions, but then, neither are system integrators helpless victims; it is they who chose to be a victim or prepared themselves to be the bait.

Reiterating the importance of service catalogue, I bring to fore 1 more best practice every system integrator should implement and practice.

Any IT product or solution requires certain amount of additional services and consultancy to put it to 100% use and reap maximum benefits of product features. Client or user is not aware of most features and also might not know the "best practices" that can help him gallop his business.

We will start at the absolute basics, something probably all system integrators have done in the past if not continuing the same today: a client buying normal desktop PC. Does the client know how many services does the system integrator have to provide for a simple desktop to perform 100%. We attempted to list them:

 Installation of OS

 Installation and configuration of Anti-Virus

 Implementing company security policies (domain etc)

 Implementing backup policies

 Printers and other peripheral devices configuration

 Migration of existing data from old PC to new PC

 Configuring other software and tools on the same

 Setting up Internet access, emails access, etc.

 Training on use of particular feature or use of software

Most of the times though, customer as well as service provider both do not either comprehend this, or do not communicate well. The service provider thinks that the customer will not pay for services and is probably in a hurry to close the deal so decides to bundle it with the product or wants to take up the same at a later date, leaving loose ends that are bound to create dispute and sour the relations and prospects of new, continued business.

The problem gets compounded when a competitor, not knowing that the services are bundled, provides a quote without services for a lower price. Now the worst part is, customer falls for it. Remember, the customer is not always aware of the pitfall.

Moreover, when purchase officers (procurement dept) are in the fray they try maximum efforts to justify their salaries and thus suck the seller dry of all margins but ultimately the customer loses too, it is not only a disappointment for the system integrator alone. And therein lies the principal cause of problems of IT services industry

I think this is one of the main reasons for problems in IT Industry. As my per HIGH-FIVE strategy, I will give 5 reasons why every service provider should maintain and give "Service Catalogue" to his customer with his every quotation or proposal. This will not only help the service provider, but also the entire industry.

Capacity Demonstration

When a service catalogue is provided it a perfect way for the service provider to demonstrate the capacity of his team

For instance, the customer might have never imagined that branch-to-branch connectivity is possible by doing port forward, until he saw "Port forwarding Charges" in the service catalogue

Easier to let customer know certain services are EXTRA

A perfect way to list out things that are not free

When things are free, people tend to ask for more, so if we make them chargeable, demands automatically become reasonable

 Eliminates after sales service stress due to clarity at both ends

It needs to be done anyway

Even when you do not have and communicate your service catalogue you will have to do that extra work

But for ZERO cost, it creates bad relations and decreases the profitability of the seller

Better quote the customer for what can be done and at what price, rather than doing it for free

Helps while Bargaining 

Lets face the fact, people like to bargain, as it is, margins in hardware business are wafer thin and we require some buffer to protect us in face of reckless bargaining and cutthroat competition.

Service catalogue becomes "THE PERFECT BUFFER" at the client may bargain on services or product or additional services, but never on all three.

Differentiates us from others

In today's world, we have to be different than others, services offered differentiates us from others

Reasons or excuses by partner for not giving service catalogues, and their solutions

1. Its ok in your city, but here customers are special

There is not a single location in India, from where I have not heard this dialogue

Everywhere people are same, everybody likes to bargain, no one likes to pay

2. Customer will not pay

Why ? if you think he cannot afford, just think which car/mobile he uses

You might not be able to convince them? Not a problem, at least try

You might fail in first few tries, but I bet, in 4/6 weeks, your earnings will improve

3. Competition will take the order

I suggest, let both of them have that experience

Few customers may go, I strongly suggest let them go, they do not deserve your professional conduct, nor your services

4. Relations will sour

If our customers are our friends, don't we want our friends to be happy!

How can they be happy if we don't provide them good service!

How can we provide good services, without money?

5. Its not practice in our industry

When most of (us) System Integrators came to business, we were innovators. And now? Where did we drop that hat?

Why are we now afraid to lay down new system?

Lets try this, we have nothing to break, but the mindset.

Limesh Parekh

The author is CEO, Enjay IT Solutions