OnForce: OSMI for Q3 2009 Points to Cost Stabilization in IT and CE Service Work

Work order pricing in the OnForce marketplace holds steady for a second quarter; total break-fix service events declines slightly, while installs see an uptick

BOSTON – October 21, 2009 – OnForce , the trusted online services marketplace that matches solution providers with quality, local service technicians across the U.S. and Canada, today released the OnForce Services Marketplace Index (OSMI) for the third quarter of 2009. Based on tens of thousands of service events this quarter across North America, the OSMI provides a comprehensive analysis of spending trends in information technology (IT) and consumer electronic (CE) services. Key findings show that average work order pricing across the OnForce marketplace remained stable for the second consecutive quarter. Additionally, OnForce saw spending in break-fix work decrease slightly and a small increase in new equipment installations.

“While many companies continue to manage their service-related budgets tightly, the OnForce
marketplace saw signs of growth and stabilization this quarter. As we get closer to 2010 we are seeing spending on technology services even out in our marketplace as the supply and demand scale balances,” said Peter Cannone, CEO of OnForce. “We are also seeing indicators in the services industry and economy as a whole, which suggest more companies are beginning to invest in new technology as opposed to solely maintaining current infrastructure.”

Overall, prices within the OnForce marketplace stabilized for the second quarter in a row after
experiencing a period of downward pressure. Install work grew this quarter by 4 percent, offsetting the number of break-fix service events, which declined from 63 percent in the second quarter to 61 percent in the third quarter. VoIP, network, and audio saw the highest installation rates.

Other key findings include:

· The top four categories this quarter in terms of work order volume include:

o PC Desktop: 30 percent (down from 32 percent in Q2.)
o TV/Video: 16 percent (down from 19 percent in Q2.)
o Network: 15 percent (up from 13 percent in Q2.)
o Printer: Nine percent (steady compared to Q2.)

· The “Other” category accounted for nearly seven percent of all work order volume in Q3, remaining at an elevated state as enterprises continue to use OnForce for non-traditional and emergency service work.

· Hourly rates for home theater onsite service were the most expensive within the Consumer Electronics category.

· Maine, New Hampshire, and Nevada were the least expensive states for onsite services in Q3, a shift from Q2 when Kentucky, West Virginia, and Maryland were the least expensive.

· Houston, Chicago, and New York saw the most onsite service volume in Q3 for the fourth quarter in a row.

“Businesses will continue to look for ways to control IT costs throughout the end of the year and into the next,” noted Cannone. “So while we will continue to see elevated break-fix activity for some time, we expect installs to gradually increase as companies strategically invest in new IT infrastructure that will yield better long-term ROI.”

The OSMI Q3 2009 report is available for download at http://www.onforce.com/OSMI/Q309 .

About OnForce
OnForce is service made simple. The company provides access to a trusted national network of more than 13,000 onsite service technicians connecting service demand with local supply through an online marketplace — easily, efficiently, and profitably. With more than one million completed service orders, OnForce is a proven leader in helping solution providers increase profits, gain a competitive advantage, and contain service costs. The OnForce community is made up of 5,000+ IT and CE solution providers and more than 13,000 service technicians who work in a number of technology categories, including computers, printers, networking, VoIP, point of sale, and consumer electronics. For more information, visit www.onforce.com .