It’s another one for the books as 2019 comes to close. These past 12 months have been a stellar year in many ways for Field Service Organizations (FSOs), Technology Vendors, and Field Service Leaders. It is not so much that this year contained any unexpected or earth-shattering events. Rather, this year we observed several developments that mark the successful progression of industry trends which have influenced the Field Service Industry for quite some time.

Here are seven developments and trends that occurred during 2019 that we believe are noteworthy of special attention:

1. Steady Economic Growth – Despite global economic uncertainty created in part to trade wars and Tariffs, the world’s economies continue to grow at a steady pace. Although down slightly from 2018, a global real GDP of 3.3% in 2019 has helped fuel revenue growth of many FSOs which has, in turn, enabled FSOs to invest in new technology and software.

2. Land Grab for Software Companies:  Field Service market growth combined with a slightly fragmented software market and the promise of continued investments in Field Service technology has resulted in a land grab of acquisitions Software vendors in 2019.  Notable acquisitions include IFS’s acquisition of Astea and ClickSoftware by Salesforce.  

3. Industry finds Solution to Labor Shortages: According to the Service Council, approximately two-thirds (67%) of FSOs faced a labor shortage this past year. This phenomenon spans multiple technology sectors including Consumer Electronics, Industrial Automation, Heavy Equipment, etc.   While it may be difficult to hire talent on a fulltime basis, FSOs in selected market segments (e.g. IT, Telecom, Retail/POS, Consumer Electronics) can fill gaps in service coverage through Freelance Management solutions and Contingent labor platforms.

4. IoT Powers Service: Manufacturers within B2B and B2C markets as have continued to roll-out IoT based applications and service offerings.  The benefits of IoT such as the ability to deliver an improved service experience and greater convenience are factors valued by both end-customers and field technicians.  As a result, IoT is now viewed as an integral part of the Field Service.

5. Digital Process Automation Goes Mainstream: The number of companies that have implemented software tools to facilitate Digital Process Automation within a Field Service environment increased significantly in 2019.   Technologies such as Augmented Reality, Artificial Intelligence, Voice Assistants and Bots are helping FSOs streamline, automate, and standardize service processes. At the same time, these tools have enabled FSOs to effectively solve a real and growing problem: a shortage of skilled labor.

6. Consumers Embrace Servitization:Subscription-based and Product as a Service (PaaS) offerings made their way to multiple technology sectors in 2019. The impact of Servitization can be observed in consumer markets, not just industrial and capital-intensive equipment markets where the trend originally developed. For example, Automobile manufacturers no longer promote the outright purchase of a car. Instead, consumers are encouraged to purchase monthly subscription programs that include warranty, insurance, and vehicle replacement after 2 years.

7. Service Marketers Step up their game:  Manufacturers are no longer taking a one size fits all approach to marketing and selling services. The Servitization trend has forced companies to be more strategic and creative in their attempts to market to consumers.   Manufacturers are now beginning to consider the preferences of different demographics, firm-graphic, and psycho-graphic factors when designing, pricing, and branding their service offerings.

Let us crack open a bottle of our favorite bubbly and drink a toast to 2019 as the year comes to end.   It really has been a phenomenal year when we consider the noteworthy developments highlighted above. Regardless of whether we personally benefited, these developments will certainly shape the future of our industry in the months and years to come.