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IT Services: Costs, Metrics, Benchmarking and MarketingIT Services: Costs, Metrics, Benchmarking and Marketing

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IT Services: Costs, Metrics, Benchmarking and MarketingIT Services: Costs, Metrics, Benchmarking and Marketing

Learn More Buy

Boulders Ahead

Sirens' song: Professional services should be a high-margin component of a product company's portfolio.

Boulder ahead: Many product companies are experiencing lower than expected margins from their professional services business. Gross margins for professional service business units have been running at 12–15%, with net operating profits of 0. (Source: "Should Professional Services Be in Your Company's Services Portfolio?" Shera Mikelson, Hahn Consulting.)

Some of the best and brightest product companies have struggled in the voyage of profitably growing a services organization. IBM is constantly used as the poster child for success, a model for how a product company can move upstream and transition itself into a true service and solution provider. But how many companies have the deep pockets of IBM? In these days of open systems, how many companies have a locked-in install base that can carry them through the painful and unprofitable transition that IBM went through? And how many other examples of success have you read about? How long is the list of product companies that have actually developed a successful and profitable service organization that offers more than basic support services? The number of articles describing product companies that want to offer more complex services is endless. The number of articles documenting favorable results is almost nonexistent.

What causes product companies to struggle on this voyage? What causes so many of them to create consulting organizations that operate at low margins? Through my direct experience and research, I believe there are three overriding factors that prevent product companies from creating successful and profitable internal consulting organizations:

  • Lack of executive alignment

  • Mismatched business models

  • Product-centric mentality

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For inquiries and questions, we collect the inquiry or question, together with name, contact details (email address, phone number and mailing address) and any other additional information voluntarily submitted to us through a Contact Us form or an email. We use this information to address the inquiry and respond to the question.

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Surveys

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Customer Service

We communicate with users on a regular basis to provide requested services and in regard to issues relating to their account we reply via email or phone in accordance with the users' wishes when a user submits their information through our Contact Us form.

Other Collection and Use of Information


Application and System Logs

Pearson automatically collects log data to help ensure the delivery, availability and security of this site. Log data may include technical information about how a user or visitor connected to this site, such as browser type, type of computer/device, operating system, internet service provider and IP address. We use this information for support purposes and to monitor the health of the site, identify problems, improve service, detect unauthorized access and fraudulent activity, prevent and respond to security incidents and appropriately scale computing resources.

Web Analytics

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Security


Pearson uses appropriate physical, administrative and technical security measures to protect personal information from unauthorized access, use and disclosure.

Children


This site is not directed to children under the age of 13.

Marketing


Pearson may send or direct marketing communications to users, provided that

  • Pearson will not use personal information collected or processed as a K-12 school service provider for the purpose of directed or targeted advertising.
  • Such marketing is consistent with applicable law and Pearson's legal obligations.
  • Pearson will not knowingly direct or send marketing communications to an individual who has expressed a preference not to receive marketing.
  • Where required by applicable law, express or implied consent to marketing exists and has not been withdrawn.

Pearson may provide personal information to a third party service provider on a restricted basis to provide marketing solely on behalf of Pearson or an affiliate or customer for whom Pearson is a service provider. Marketing preferences may be changed at any time.

Correcting/Updating Personal Information


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Sale of Personal Information


Pearson does not rent or sell personal information in exchange for any payment of money.

While Pearson does not sell personal information, as defined in Nevada law, Nevada residents may email a request for no sale of their personal information to NevadaDesignatedRequest@pearson.com.

Supplemental Privacy Statement for California Residents


California residents should read our Supplemental privacy statement for California residents in conjunction with this Privacy Notice. The Supplemental privacy statement for California residents explains Pearson's commitment to comply with California law and applies to personal information of California residents collected in connection with this site and the Services.

Sharing and Disclosure


Pearson may disclose personal information, as follows:

  • As required by law.
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  • In response to a subpoena, court order or legal process, to the extent permitted or required by law
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  • To investigate or address actual or suspected fraud or other illegal activities
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  • To affiliated Pearson companies and other companies and organizations who perform work for Pearson and are obligated to protect the privacy of personal information consistent with this Privacy Notice
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Links


This web site contains links to other sites. Please be aware that we are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of each and every web site that collects Personal Information. This privacy statement applies solely to information collected by this web site.

Requests and Contact


Please contact us about this Privacy Notice or if you have any requests or questions relating to the privacy of your personal information.

Changes to this Privacy Notice


We may revise this Privacy Notice through an updated posting. We will identify the effective date of the revision in the posting. Often, updates are made to provide greater clarity or to comply with changes in regulatory requirements. If the updates involve material changes to the collection, protection, use or disclosure of Personal Information, Pearson will provide notice of the change through a conspicuous notice on this site or other appropriate way. Continued use of the site after the effective date of a posted revision evidences acceptance. Please contact us if you have questions or concerns about the Privacy Notice or any objection to any revisions.

Last Update: November 17, 2020