Accenture and ServiceSource Join to Improve Recurring Revenues Generated By Technology Compananies
Addressing a long-standing industry challenge, Accenture and ServiceSource® have formed a global alliance to make it easier and faster for companies, such as manufacturers of computer software and equipment and medical technology devices, to generate and retain more recurring revenues from their customers. These revenue streams flow from various types of agreements such as hardware and software maintenance and support contracts, subscriptions offered by software as-a-service providers, and warranties for health and life science equipment.
These types of agreements are sold initially by the original sales teams, but then must be renewed periodically to ensure that companies continue to deliver the service and collect the revenue. For the past two decades, however, renewal processes and related data have become overly complex, disaggregated, and time-consuming to navigate. As a result, companies often have not invested the time needed to pursue these ongoing revenue opportunities with existing customers, and when they have, the results have generally been poor.
“Accenture and ServiceSource recognise the challenges associated with the recurring revenue sales process and see a big opportunity for technology companies to drive more recurring revenue — potentially $30 billion per year according to ServiceSource analysis – if they can transform this increasingly strategic piece of their business,” said Mike Smerklo, chairman and CEO of ServiceSource. “Most companies incorporate a significant recurring revenue component for much of what they sell including renewals for hardware, software, software-as-a-service and other subscription services. In fact, these renewals often account for 30-40 percent of a technology company’s revenues and as much as 50 percent of its profits.”
Working together, the two companies will combine leading technology, services and best practices to drive companies’ top-line results around existing and emerging recurring revenue streams. Accenture will deliver capabilities in systems integration, consulting, business transformation, and predictive analytics.
ServiceSource will deploy Renew OnDemand™, its cloud-based application that provides the data management, sales automation and sales analytics capabilities needed to maximize recurring revenue. Together, Accenture and ServiceSource will create a comprehensive “Recurring Revenue Blueprint”to help technology companies capitalize on these opportunities, including:
- Innovative industry practices for targeting recurring revenue and renewal opportunities, data management, value selling and minimising churn;
- Integration of existing systems and data including customer relationship management (CRM), enterprise resource planning (ERP), and billing applications;
- Sales transformation for incorporating new recurring revenue and renewal processes and practices into existing sales operations;
- Technology solutions based on ServiceSource’s Renew OnDemand, the only cloud application purpose-built to maximize recurring revenue; and,
- Selling and enablement managed services to enhance coverage and performance in recurring revenue.
“This agreement will deliver a comprehensive and integrated solution for what has long been an unwieldy and neglected renewals process,” said John Walsh, senior managing director in Accenture’s Communications, Media & Technology operating group. “By integrating Renew OnDemand with enterprise platforms and processes, we expect to drive real and lasting results for a variety of clients – notably those using ‘as-a-service’ business models as key enablers of growth and differentiation.”
ServiceSource International, Inc. (NASDAQ: SREV) is the global leader in recurring revenue management. Renew OnDemand™, the only cloud application built specifically to grow recurring revenue, automates a highly valuable but typically manual business process. By leveraging big data to give companies a complete view of their customers, Renew OnDemand and our proven services drive higher subscription, maintenance, and support revenue, improved customer retention, and increased business predictability.
With over a decade of experience focused exclusively on growing recurring revenue, ServiceSource's products and services are based on proven best practices and global benchmarks. Headquartered in the Cloud Corridor of San Francisco, ServiceSource® manages over $9 billion in recurring revenue for the world’s largest and most respected technology companies. ServiceSource renews a customer contract every 47 seconds through engagements in more than 150 countries and 40 languages. For more information, please go to www.servicesource.com.
Accenture is a global management consulting, technology services and outsourcing company, with approximately 275,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$28.6 billion for the fiscal year ended Aug. 31, 2013. Its home page is www.accenture.com.
This press release contains forward-looking statements, including statements regarding the benefits of ServiceSource offerings, our managed services and our Renew OnDemand cloud platform and application. These forward-looking statements are based on our current assumptions and beliefs, and involve risks and uncertainties that could cause our results to differ materially from those expressed or implied in our forward-looking statements. Thoserisks and uncertainties include, without limitation, fluctuations in our quarterly results of operations; the risk of material defects or errors in the our software offerings or their failure to meet customer expectations; migrating customers to Renew OnDemand and the ability to integrate Renew OnDemand with other third-party applications used by our customers; errors in estimates as to the renewal rate improvements and/or service revenue we can generate for our customers; our ability to grow the market for service revenue management; our ability to protect our intellectual property rights; the risk of claims that our offerings infringe the intellectual property rights of others; changes in market conditions that impact our ability to sell the Renew OnDemand solution and/or generate service revenue on our customers' behalf; the possibility that our estimates of service revenue opportunity under management and other metrics may prove inaccurate; demand for our offering that falls short of expectations; our ability to keep customer data and other confidential information secure; our ability to adapt our solution to changes in the market or new competition; general political, economic and market conditions and events; and other risks and uncertainties described more fully in our periodic reports and registration statements filed with the Securities and Exchange Commission, which can be obtained online at the Commission's website at http://www.sec.gov. All forward-looking statements in this press release are based on information currently available to us, and we assume no obligation to update these forward-looking statements.