Service Leadership
Total Profit Solutions for IT Companies®
Service Leadership Index®
- Product GM% - BIC Profitability SPs: Q1-11 25.5% Q2-11 25.3% Q3-11 26.6% Q4-11 27.2%
- Product GM% - Median Profitability SPs: Q1-11 20.5% Q2-11 20.5% Q3-11 19.2% Q4-11 19.7%
- Product GM% - Bottom 1/4 Profitability SPs: Q1-11 19.9% Q2-11 20.5% Q3-11 18.5% Q4-11 14.8%
- Services GM% - BIC Profitability SPs: Q1-11 53.4% Q2-11 54.9% Q3-11 52.2% Q4-11 52.8%
- Services GM% - Median Profitability SPs: Q1-11 51.0% Q2-11 50.1% Q3-11 48.1% Q4-11 46.4%
- Services GM% - Bottom 1/4 Profitability SPs: Q1-11 36.1% Q2-11 41.0% Q3-11 42.9% Q4-11 38.8%
- SG&A% - BIC Profitability SPs: Q1-11 26.0% Q2-11 26.2% Q3-11 26.1% Q4-11 27.6%
- SG&A% - Median Profitability SPs: Q1-11 32.2% Q2-11 31.9% Q3-11 30.3% Q4-11 29.8%
- SG&A% - Bottom 1/4 Profitability SPs: Q1-11 35.7% Q2-11 34.6% Q3-11 36.9% Q4-11 35.4%
- EBITDA% - BIC Profitability SPs: Q1-11 19.2% Q2-11 19.2% Q3-11 17.8% Q4-11 17.7%
- EBITDA% - Median Profitability SPs: Q1-11 7.3% Q2-11 7.3% Q3-11 6.8% Q4-11 5.9%
- EBITDA% - Bottom 1/4 Profitability SPs: Q1-11 −2.4% Q2-11 −1.1% Q3-11 −2.7% Q4-11 −5.6%
Quarterly Solution Provider Performance
A Service Leadership Index Report: Surviving and Thriving in an SMB IT Recession
How Likely, How Bad, How to Survive and Thrive?
June 2008
Recession, what recession? Many Solution Providers are reporting good results. Yet the underlying signs of weakness in the economy persist. And most Solution Providers know the “mild” recession of 2001 hit the IT sector hard.
Our Solution Provider clients want to know:
- Is an SMB IT recession in progress or starting?
- If so, how bad will it be?
- What are the best strategies for surviving and even thriving during an SMB IT recession?
Indeed, the Service Leadership Index™ Quarterly Solution Provider Performance Report shows declining profits among even the top performing Solution Providers, as shown in the chart below.
