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'Technical Help' is Software Support's Meal Ticket
By Danialle Weaver
Have you ever frittered away a day trying to hook a new printer-copier-fax-scanner
machine up so it works properly with both your PC and your laptop? Only
to find out the issue wasn't an "IRQ" conflict or a software configuration
problem, but a decidedly low-tech external gizmo to switch between the two
computers?
If so, the experience probably made you madder than hell.
The same thing happened to Joseph Jacoboni recently. But instead of getting
angry, he rubbed his hands together and laughed. "We're going to be
in this business for a very long time," he observed.
Jacoboni's five-year-old company, Software
Support Inc., runs the call centers that provide answers to computer
user's questions. Located just north of Orlando along the booming Interstate-4
corridor, Software Support has developed a reputation for quality in an
industry not always known for that.
The result shows. The company is growing exponentially and revenues could
hit $30 million or more by the end of this year. Customers include computer
manufacturers and resellers, software publishers, Fortune 1000 corporations,
traveling salespeople, home office workers and even frustrated parents.
The company's motto: "The only call you need to make."
"We have a tendency in this industry to think the technology is mature
because we have very sophisticated interfaces that are easier and more intuitive
and that we have an environment in which manufacturers and software publishers
are creating compatible products," Jacoboni said. "The reality
is most computer companies still operate within their own confines - they're
concerned with their product's features and functions."
The frenzy of technology mergers and acquisitions and the rapid pace of
technology innovation only will exacerbate the problem.
Worldwide, spending on software support services is expected to double by
2000, to just over $30 billion, estimates International Data Corp. The U.S.
customer information services market, including help desk software and professional
services, will grow from $1.9 billion this year to $2.76 billion by 2000,
according to the Aberdeen Group, a Boston-based research firm.
Corporate America, faced with shrinking staff, dwindling resources and technology
flux, is turning to outside help in answering an increasing number of user
queries. More than 40 percent of companies that operate help desks are expected
to outsource at least some tasks by 1998, said The Gartner Group, a research
firm. Small to mid-sized companies, home offices and mobile users also are
crying out for support.
Ironically, while the need for support is exploding, computer makers and
software developers have pulled the plug on free lifetime support services
in order to cut costs and maintain razor-thin profit margins - services
they once claimed made their product better than the other guy's. Besides,
they were not fond of sporting a perennial black eye from callers over help-desk
quality.
As a result, intense competition has erupted among service providers seeking
to fill the void. Amy Osetek, a Dataquest analyst, said companies who survive
the inevitable shakeout must differentiate themselves from competitors and
pump up call volumes. Price, depth of offerings and technical expertise
are key. So is a clear, targeted message backed up with valued and unique
capabilities.
Software Support broadened both reach and volume in April when the company
introduced a support package targeted to small businesses and home offices.
In June, the company launched a revamped World Wide Web page (www.ssisupport.com)
that allows computer users to find free answers to common questions.
Dataquest's Osetek lauded the company's actions. The research firm "sees
a growing need for both phone and Internet-based support services to residential
and small office/home office markets," Osetek said. Other companies
should listen up, she suggested.
Software Support's strategy also has won compliments from a major competitor,
Tampa's Sykes Enterprises. Software Support has constantly expanded its
new offerings and exhibited "good focus" and "marketing flair,"
said Sykes senior vice president David Garner. "Jacoboni is serious
in his intent to provide quality services and in trying to ensure the industry
as a whole moves forward from a quality image standpoint."
"We have a first-call resolution rate of 93 percent," Jacoboni
said proudly.
Although Software Support is private and Jacoboni won't reveal specific
numbers, he said 1995 sales were in the $8 million to $10 million range.
This year, the company is "on track" to meet forecasts of $30
million to $40 million. Exponential growth is expected in 1997.
The company's headquarters and call center is staffed by about 300 support
technicians, nearly 85 percent of whom are full-time. The staff will expand
once a new building is finished two doors away. A second $3.6-million center
in Houston opened in February, and a third is to open in Salt Lake City
this year. On average, about 600 employees eventually will staff the Orlando
and Houston operations, with from 200 to 300 in Salt Lake City.
Software Support's fee structure starts at $25 per "incident"
and can go over $1,000 per year for a small business. Software and hardware
manufacturers are charged on a per-minute or per-call basis. According to
The Gartner Group, costs to corporations can range from $2 to $4 per minute,
or $8.59 to $36 per user per month.
The company has made a profit every year except its second, and all the
profits are reinvested into the company, said Jacoboni, who is the company's
principal owner and serves as president and CEO. Until recently, Jacoboni's
was the only seat on the board of directors, but the board currently is
being expanded. At least one of those seats likely will go to Logistix,
an independent software manufacturer in Freemont, Calif. Logistix recently
hired Software Support to provide worldwide call center services for its
products. As part of the deal, Logistix took an equity stake of undisclosed
size.
While providing support services may seem like a no-brainer now, the path
has not always been smooth for Jacoboni or for Software Support. Jacoboni,
a 43-year-old Detroit native, started his first company, a sales motivation
and training consultancy in Houston, at age 21. He expanded too quickly
and burnt himself out four years later. A series of sales management positions
led him to Central Florida and Maynard Electronics, which was acquired in
1989 by Archive Corp. of Costa Mesa, Calif. and which now is part of Lake
Mary's Seagate Software Storage Group.
After serving as director of sales and building Maynard's revenues to $50
million, Jacoboni began to burn out again.
"I had a daughter, who was then six, and I hardly knew her because
I was on the road so much," Jacoboni recalled. Chaffing at the role
of employee and tired of making money for others, the frustrated entrepreneur
took a six-month sabbatical, "to decide what I want to do when I grow
up."
Not looking forward to moving back to snowy Northern winters, Jacoboni sold
his house, borrowed against assets and scraped together $100,000 in startup
capital. In late 1991, he opened Software Support's first 1,200-square-foot
office in Lake Mary. There were 10 employees.
Things went well the first year. The company said it made a small profit.
The second year, however, brought a small loss. On its heels, in late 1993,
came a $44,883.95 tax lien from the Internal Revenue Service for failure
to pay employment taxes. (Late receivables were the problem; the lien was
released a month later.) Jacoboni calls it a typical bump in any entrepreneur's
path to success.
Another misstep was a sales office in Holland, envisioned as a major European
call center. That office opened briefly, then closed, after Jacoboni discovered
employee costs in Europe are higher than the U.S. because of liberal leave
and overtime policies. Instead, the company's springboard to the overseas
support market will be the new center in Salt Lake City. Salt Lake is in
an ideal time zone to service Pacific Rim markets, and the area is populated
with former Mormon missionaries, who because of their time abroad have excellent
multilingual capabilities.
Despite past troubles, Jacoboni has received many offers to invest in the
company or buy it outright. Small wonder: The company's competitor, Tampa's
Sykes Enterprises, went public April 30, and of this writing was counted
among the most successful of the spring 1996 IPOs. Software Support isn't
ripe yet for an IPO, but financials are audited, just in case.
Meanwhile, the company continues to grow. Software Support's extensive client
list includes Cisco Systems, NCR, Informix, Coral, Borland, Office Max,
Gateway 2000 and Dell. The company provides support for 170 shrink-wrapped
PC and Macintosh software programs for operating systems and applications
such as databases, spreadsheets, graphics, utilities, educational software
and games. The company also provides support for desktops, laptops, printers
and peripherals, as well as for connecting them together. It provides advanced
technical support services for networks, client-server solutions and Intranets,
as well as mobile PC users.
Software Support earned awards from two industry publications this year
for innovative service offerings. One of those offerings was Support ProFiler,
a software package that uses artificial intelligence to quickly pull up
information on a customer's computer configuration, existing applications,
whether the customer has called before and who took the call. The information
is routed to the technician's screen a split-second before the customer's
call is patched through.
It was Profiler that sealed a support contract with Centerior Energy Corp.,
an Ohio utility, for 700 field sales and marketing employees working at
odd hours from virtual offices in homes, distant hotel rooms or rental car
trunks.
"I was impressed with the way they used technology," said Centerior's
client services supervisor, Jerry Iagulli. "Other vendors do it with
brute force." Software Support also was the only vendor interviewed
willing to support Centerior's proprietary software.
Overall, Iagulli was impressed with the quality of service provided by Software
Support. He pointed to the company's requirement that each support technician
set aside two hours of each eight-hour shift for continuing training on
various software applications. (An industry rule-of-thumb suggests support
technicians should spend no more than five hours on the phone each day.)
Software Support does not hire entry-level support technicians. Rather,
each technician is expected to be knowledgeable in four or five separate
applications. Several times each day, a supervisor's "blind third ear"
checks the technician's tone of voice and rate of speech for appropriateness.
Supervisors monitor hold times and abandon rates and professionalism and
knowledge count: 15 percent of each paycheck is performance-based. Salaries
average $24,800; training is underwritten by a state Quick Response Training
grant of $218,580 and a $200,000 Seminole County grant, awarded in August.
Training is important, but it also takes professionalism to answer some
questions, explained Sales Engineer Stan Orelove. One caller asked where
the 'any' key is. Another wanted to know why the door to his CD-ROM drive,
which he used as a cup holder for his coffee, was now stuck shut.
"If people would just learn to use their F1 keys, our business would
drop considerably," Orelove said.
Don't hold your breath.
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