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Computer industry

The Shifting Landscape of Computer Support: From Free to Fee-Based

Strategic Insights

— 2 min read

As the complexity of computer systems grows, the need for reliable and efficient support services has become increasingly paramount. However, the traditional free help lines offered by computer manufacturers are facing significant challenges, including staffing problems and the fact that queries often relate to software issues rather than hardware difficulties. This shift is forcing industry leaders to move towards specialized, subscription-based help lines that promise speedy solutions while enabling companies to outsource their computer support operations, thus cutting costs.

Key Takeaways:

  • Seven out of 10 calls received on IBM's help line turn out to be software related, with nothing to do with the IBM product itself.
  • A growing number of industry leaders are moving towards specialized, subscription-based help lines, offering faster and more reliable solutions.
  • Teleware Support Inc. offers a wide range of software and hardware support for a subscription fee of $100 per year per machine, with a promise of a solution within 30 minutes and one call.
  • Computer manufacturers are struggling with the economics of help lines, with some selling a single product but facing many hours of staff time afterwards to help customers.
  • Lotus Development Canada Ltd. offers a free help-line service for 90 days with its products, with 35 staff members and a solution rate of 12 minutes on average.
  • The entire industry is moving towards fee-based services, with companies like IBM and Lotus Development Canada Ltd. starting to charge for their support services.

Statistics:

  • IBM received close to a half a million calls last year at its various consumer and corporate help lines.
  • IBM has a staff of about 200 to take care of queries.
  • Lotus Development Canada Ltd. answered 120,000 queries last year on its free help-line service.
  • Teleware Support Inc. promises to solve any problem within 30 minutes and on the first call.
  • The average cost of a solution at least one software developer was estimated to be around $1400.
  • Implementation of a subscription-based help-line service at Teleware was started in November of last year.

Sources:

  • The Globe and Mail - Adam Corelli
  • Compaq Computer Corp. - "Computer companies offer help lines for beleaguered business and home users"
  • International Business Machines Corp. - "IBM's help-line service is struggling with staffing problems"
  • Dell Computer Corp. - "Dell offers help lines for beleaguered business and home users"
  • Microsoft Corp. - "Microsoft offers free help-line service for its products"
  • Lotus Development Corp. - "Lotus offers a free help-line service for 90 days with its products"
  • IBM Canada Ltd. - "IBM Canada offers free help-line service for its products"
  • Teleware Support Inc. - "Teleware Support Inc. offers help-line support on a wide range of software and hardware"

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