IFS State of Service 2023: Challenges and Opportunities for Field Service Companies

The pressure to meet SLAs (Service Level Agreements), the shortage of skilled personnel, and the need to achieve technological superiority: In the IFS State of Service 2023 report, field service companies share their main challenges and strengths. 

Key Points: 

• Technological excellence has surpassed customer experience as the main competitive differentiator. 

• Sustainability is taking a prominent role. 

• Almost half of respondents (46%) struggle to meet customer SLAs. 

IFS, the global business cloud software company, has revealed the results of its global research*, identifying the main issues and key focus areas for field service organizations over the next 12 months. 

The results highlight the significant friction between opportunities, skills, and technology to overcome market disruptions. 

Technological excellence has surpassed customer experience as the primary competitive differentiator in field service. Nevertheless, nearly half of respondents (46%) state that their organizations continue to struggle to maintain service level agreements (SLAs), and 37% cite outdated or inadequate technology as a recurring constraint, indicating a clear technological gap that needs to be bridged. 

Field service companies face significant pressures not only to meet customer obligations but also to remain competitive and achieve future sustainability goals, considering other main concerns: a skilled workforce (40%), change management, and user adoption of new technologies (37%). 

This latter point is now the most important forward-looking commitment, closely followed by the modernization of outdated service management systems and the leveraging of new technologies. 

The Impact of Digitalization on Field Service Companies

Since 2018, there has been a significant increase in the use of technology and investments in this area. 

According to a 2022 study, the adoption of artificial intelligence (AI) has more than doubled, rising from 22% to 46%. Reverse logistics has increased from 25% to 54%, and the installation of chatbots has nearly quadrupled, going from 11% to 44%. 

Respondents who indicate technical leadership (29%) as their most critical distinction have quadrupled since 2018, surpassing customer experience (26%). This trend demonstrates how companies recognize that, without investing in the right digital technology, they risk becoming obsolete in a highly competitive and discontinuous market. 

The Future of Service Management: Investments and Technological Adoptions 

While technology is driving investment trends, some considerations indicate a continued focus on customer experience. 

FSM technological solutions rank high in terms of planned adoption: 

• Remote assistance ( 44% of respondents plan to implement IT)
• Wearables (44%)
• Knowledge management (42%)
• Simulations (41%)
• Scheduling optimization and automation (40%)
• Customer self-service (40%)

Marne Martin’s Comments 

Marne Martin, President, Service Management, IFS commented: “Our latest State of Service study paints a vivid picture – while customer centricity remains high on the agenda, the realization of the importance of technology as an enabler has become much clearer. Success is, however, dependent on the ability to orchestrate people and skills alongside market dynamics and customer demands for consistency in service.” 

“In an economy of scarce resources and rapidly rising costs, remaining competitive is based on modern service management tools that can help companies serve customers more efficiently.”  

Marne Martin, President, Service Management concluded, “Having the right technology has never been more vital than at the moment that organizations interact with their customers, provide services and deliver their best: in their Moment of Service”.  

The State of Service 2023 Global Report includes insights and guidance from some of the world’s most creative business and service executives from manufacturing, telecommunications, utility, and service provider firms, in addition to the study findings. 

To learn more, download the State of Service 2023 Global Report. For more details on the solutions offered by IFS, explore EAM solutions, ERP systems, Service Management, and Integrated Cloud Software. 

*The research was conducted by Mindforce Research, polling 400 senior-decision makers in Field Service across North America, Western Europe, the Middle East, and Asia Pacific. It is the third State of Service study commissioned by IFS, following versions in 2018 and 2020.