News Feed Item

UK employees Could Lose 223 Man Hours Every Year Due to Poor Customer Support from IT Service Providers, Says Rackspace Report

Inadequate customer service is costing UK employees almost 223 hours a year1 according to new research from Rackspace Hosting (NYSE: RAX), the open cloud company.

The Rackspace IT Industry Service Report, the first annual snapshot of IT service quality in the UK, found that the problem worsens when we look at IT teams. Thirty nine per cent of respondent company IT staff are estimated to be losing 6 hours or more per week on tackling IT problems and chasing suppliers.

This waste of resources has huge productivity implications, making it unsurprising that IT customer service now appears to be a key issue both mid-sized and enterprise businesses. Almost half (48 per cent) of respondents reported that customer service has become an increased priority over the last 12 months, while over a quarter (27 per cent) already regard customer service to be a high priority.

Taylor Rhodes, Managing Director, International at Rackspace said: “A staggering amount of man hours are being wasted by UK businesses as they struggle to manage and control IT service issues. CIOs are taking note however and it is encouraging to see service being acknowledged as a crucial factor in procurement decisions along with parameters such as price, security and uptime guarantees.”

UK businesses switch providers if customer service is not up to scratch

Although the average score for IT service satisfaction amongst enterprise IT decision-makers interviewed was a relatively high 7.2 out of 10, a total of 69 per cent of respondents have dropped IT suppliers in the past 12 months because of customer service shortfalls.

“Our report shows that ‘satisfactory service’ is no longer good enough. Seven out of 10 of the respondent UK companies have voted with their feet in the past year and changed suppliers because of poor quality service,” continued Rhodes. “In today’s highly competitive business environment, customer support is a crucial factor, which is precisely why Rackspace champions a culture of ‘Fanatical Support’. The results revealed today prove that many IT suppliers in the UK today are not rising to the challenge and are quite rightly losing out on business as a consequence.”

‘Why are we waiting?’ ask UK businesses

The most common causes for complaint relate to IT suppliers having an inadequate level of interaction with their customers, rather than issues of a technical nature. A poor response time to faults (32 per cent) and a low quality of communication (32 per cent) were the most commonly reported customer support failings.

Moving forwards, it is clear that IT organisations need to take a customer-centric approach if they want to win and retain business. This view is supported by Stephen Mann, Senior Analyst, Infrastructure & Operations, Forrester. In a recent blog post Stephen stated:

“Research shows what a difference customer experience makes to company success. Rackspace is such a company – it differentiates itself through service. Rackspace exemplifies the benefits of employing the right kind of people (‘obsessive’ about what they do) and shows how this competitive differentiator has translated into business success. They rely on capable people, not limited and rigid processes operated by “scriptbots,” to support their customers.”

1 The average number of hours lost by an employee due to an IT failure as used in this release is calculated by taking a fixed mid-point for each range indicated by the respondents in the survey (for example, the fixed midpoint for the range 2-6 hours is 4 hours), multiplied by the respective percentage of respondents who selected that range, with the resulting amounts for each range then added together (this was equal to 4.75 hours). The sum was then multiplied by 47 weeks, a typical number of weeks worked by UK employees in a year.


About the research

This research was conducted by Vanson Bourne in September 2012 amongst 250 organisations with at least 250 employees. The study included organisations from private and public sectors. Vanson Bourne is a specialist research-led consultancy carrying out user research within a technology context. Vanson Bourne's clients range from start-ups to well-known companies that need expert guidance, delivering robust and credible research-based analysis. Detailed information and the full survey report can be found here.

About Rackspace

Rackspace® Hosting (NYSE: RAX) is the open cloud company, delivering open technologies and powering more than 190,000 customers worldwide. Rackspace provides its renowned Fanatical Support® across a broad portfolio of IT products, including Public Cloud, Private Cloud, Hybrid Hosting and Dedicated Hosting. The company offers choice, flexibility and freedom from vendor lock in. Rackspace has been recognised by Bloomberg BusinessWeek as a Top 100 Performing Technology Company and is featured on Sunday Times list of 100 Best Companies to Work For. Rackspace was positioned in the Leaders Quadrant by Gartner Inc. in the “2011 Magic Quadrant for Managed Hosting.”

Rackspace Limited, the UK subsidiary of Rackspace Hosting®, is headquartered in San Antonio with offices and data centers around the world. For more information, visit rackspace.co.uk.

Forward Looking Statements

This press release contains forward-looking statements that involve risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of Rackspace Hosting could differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including any statements about historical results or third party data that may suggest trends for our business or industry; any statements of the plans, strategies, and objectives of Rackspace for future operations or growth; any statements of expectation or belief regarding future events, and any statements of assumptions underlying any of the items mentioned. Risks, uncertainties and assumptions include the possibility that expected growth or success may not materialize because of the lack of acceptance of cloud computing in the marketplace or specifically, Rackspace’s cloud computing services, Rackspace's failure to execute on its operational plans, rapid technological changes that adversely affect the demand for Rackspace services, and other risks that are described in Rackspace Hosting's Form 10-Q for the quarter ended June 30, 2012, filed with the SEC on August 9, 2012. Except as required by law, Rackspace Hosting assumes no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, will discuss why and how ReadyTalk diverted from healthy revenue an...
SYS-CON Events announced today that Transparent Cloud Computing (T-Cloud) Consortium will exhibit at the 19th International Cloud Expo®, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. The Transparent Cloud Computing Consortium (T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data proces...
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
Intelligent machines are here. Robots, self-driving cars, drones, bots and many IoT devices are becoming smarter with Machine Learning. In her session at @ThingsExpo, Sudha Jamthe, CEO of IoTDisruptions.com, will discuss the next wave of business disruption at the junction of IoT and AI, impacting many industries and set to change our lives, work and world as we know it.
In today's uber-connected, consumer-centric, cloud-enabled, insights-driven, multi-device, global world, the focus of solutions has shifted from the product that is sold to the person who is buying the product or service. Enterprises have rebranded their business around the consumers of their products. The buyer is the person and the focus is not on the offering. The person is connected through multiple devices, wearables, at home, on the road, and in multiple locations, sometimes simultaneously...
Established in 1998, Calsoft is a leading software product engineering Services Company specializing in Storage, Networking, Virtualization and Cloud business verticals. Calsoft provides End-to-End Product Development, Quality Assurance Sustenance, Solution Engineering and Professional Services expertise to assist customers in achieving their product development and business goals. The company's deep domain knowledge of Storage, Virtualization, Networking and Cloud verticals helps in delivering ...
In the 21st century, security on the Internet has become one of the most important issues. We hear more and more about cyber-attacks on the websites of large corporations, banks and even small businesses. When online we’re concerned not only for our own safety but also our privacy. We have to know that hackers usually start their preparation by investigating the private information of admins – the habits, interests, visited websites and so on. On the other hand, our own security is in danger bec...
The Internet of Things (IoT), in all its myriad manifestations, has great potential. Much of that potential comes from the evolving data management and analytic (DMA) technologies and processes that allow us to gain insight from all of the IoT data that can be generated and gathered. This potential may never be met as those data sets are tied to specific industry verticals and single markets, with no clear way to use IoT data and sensor analytics to fulfill the hype being given the IoT today.
SYS-CON Events announced today that Hitrons Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Hitrons Solutions Inc. is distributor in the North American market for unique products and services of small and medium-size businesses, including cloud services and solutions, SEO marketing platforms, and mobile applications.
OnProcess Technology has announced it will be a featured speaker at @ThingsExpo, taking place November 1 - 3, 2016, in Santa Clara, California. Dan Gettens, OnProcess’ Chief Analytics Officer, will discuss how Internet of Things (IoT) data can be leveraged to predict product failures, improve uptime and slash costly inventory stock. @ThingsExpo is an annual gathering of IoT and cloud developers, practitioners and thought-leaders who exchange ideas and insights on topics ranging from Big Data in...
Enterprises have been using both Big Data and virtualization for years. Until recently, however, most enterprises have not combined the two. Big Data's demands for higher levels of performance, the ability to control quality-of-service (QoS), and the ability to adhere to SLAs have kept it on bare metal, apart from the modern data center cloud. With recent technology innovations, we've seen the advantages of bare metal erode to such a degree that the enhanced flexibility and reduced costs that cl...
As companies adopt the cloud-to-streamline workflow, deployment hasn’t been very seamless because of IT concerns surrounding security risks. The cloud offers many benefits, but protecting and securing information can be tricky across multiple cloud providers and remains IT’s overall responsibility. In his session at 19th Cloud Expo, Simon Bain, CEO of SearchYourCloud, will address security compliance issues associated with cloud applications and how document-level encryption is critical for sup...
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes ho...
SYS-CON Events announced today that Impiger Technologies will exhibit in Booth #109 at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Impiger Technologies is a world-class, enterprise software product engineering company specializing in Mobile Application Development, Cloud Applications, Microsoft Technology Solutions, Web Technology and Telecom Services. Impiger Technologies helps enterprises improve busi...
SYS-CON Events announced today that Enzu will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to focus on the core of their online busine...