SOURCE: ServiceSource

May 10, 2006 00:00 ET

Global Technology Clients Select ServiceSource as One-Stop Partner to Manage Maintenance Contracts Worldwide

Company Builds International Success on the Leadership of Crosbie Burns as EVP of EMEA Operations & Jack Johnson as VP of EMEA Inside Sales

SAN FRANCISCO, CA -- (MARKET WIRE) -- May 10, 2006 -- ServiceSource, a global outsource sales organization focused exclusively on increasing support and maintenance revenue for technology companies, today announced that international sales efforts have exceeded expectations in the first year and projects extensive growth for 2006. The company provides a one-stop partnership for effectively maximizing maintenance renewals worldwide and provides one single view of clients' overall global maintenance results. The company's international growth is built on the leadership of two key executives from the technology services industry: Crosbie Burns, Executive Vice President of EMEA Operations, and Jack Johnson, Vice President of EMEA Inside Sales. Both Johnson and Burns bring over 20 years of technology industry expertise at leading companies such as PeopleSoft, JD Edwards, and BEA Systems, and have proven track records of success at the executive management level. They lead ServiceSource global operations from the company's international headquarters in Dublin, Ireland. Demand for the outsourcing service has far exceeded expectations, with over 200% achievement against original revenue projections and client acquisition targets.

Profitable since inception in 1999, ServiceSource was founded with one mission: to maximize support and maintenance revenue for technology companies. ServiceSource's global efforts are currently growing at an unparalleled rate, and the company boasts an international client list including: AspenTech, BEA Systems, BlueCoat Systems, Borland Software Corporation, Novell, and Quantum. It currently manages 7 regions throughout Europe for Sun Microsystems. Internationally, ServiceSource counts the technology industry's leading companies as clients, serving over 35 hardware, software and telecom equipment providers.

Proof that technology companies with European operations need to address the strategic challenges associated with maintenance renewals is referenced in a January 20, 2006 Gartner Dataquest report "Market Trends & Forecast: Infrastructure Support Services, Worldwide, 2005" written by Bob Igou. Gartner forecasts that IT support services offerings will generate $52.6 billion in Europe, Middle East & Africa by 2009.

For technology companies with significant European operations, this maintenance stream has the potential to generate 15% to 20% of total worldwide revenue. Yet renewal rates for European operations are typically below reported industry averages and often as low as 45%. This underperformance is due to the fact that maximizing international maintenance revenue requires a significant investment such as: a dedicated service sales team, native language speakers, knowledge of in-country practices, and systems which manage local currencies.

"In less than a year, ServiceSource has perfected the maintenance sales process for our clients country by country in order to maximize revenue. By hiring native language speaking sales professionals, understanding the business protocols in each market, and delivering a single reporting view into EMEA results, our clients receive a more comprehensive service than they can possibly afford to build internally. There is a very obvious market need for the unique service offering we provide and the technology leaders in EMEA have been quick to take advantage of this," said Crosbie Burns, ServiceSource's EVP of EMEA Operations. Jack Johnson, VP of EMEA Inside Sales at ServiceSource, further added that "ServiceSource clients require predictable success worldwide and results that are consistent around the world, regardless of increasing complexity. The entire leadership team is committed to our global clients' needs, and we tailor our best practices approach to each individual market."

The company's international operation is headquartered in Dublin, Ireland, where ServiceSource currently provides native language sales capabilities in seventeen languages including: Arabic, Dutch, German, Flemish, French, Italian, Norwegian, Spanish, Slovak and Swedish. It operates 6 days a week in order to serve European, Middle Eastern and African markets.

More about Crosbie Burns:

Burns is the EVP of EMEA Operations for ServiceSource and has over 20 years of experience in the IT sector, focused around ERP solutions for medium and large-enterprise companies. Before joining ServiceSource, Burns was vice president and managing director of the UK and Ireland operations for PeopleSoft, following the acquisition of JD Edwards, and was largely responsible for the successful integration of the two companies in the UK. Prior to joining PeopleSoft, Burns was UK managing director of JD Edwards, responsible for shifting the company's focus to providing solutions with increased business value. Other previous experience includes management roles at Momentum Computing and Creative Computers in Australia. Burns holds a Bachelor of Commerce degree from Canterbury University in New Zealand.

More about Jack Johnson:

Johnson is the VP of EMEA Inside Sales and brings over 25 years of experience in customer support and professional services for technology companies. Johnson began his career in service sales at Digital Equipment Corporation, where he managed U.S.-based teams for renewals and services sales. His most recent roles included both service sales and customer support delivery for BEA Systems North American operations. He consistently outperformed targets on a $200+M base of business. Johnson holds a Bachelor of Science degree from the University of Richmond, and post graduate certificates in Organizational Design.

About ServiceSource

Profitable since its inception in 1999, San Francisco-based ServiceSource is dedicated solely to maximizing support and maintenance revenue for technology companies. Within the technology industry, support and services revenue totals over $135 billion worldwide, and companies typically realize only 84% of their maximum opportunity. It is this revenue gap that ServiceSource uncovers, manages, and closes on behalf of its clients. ServiceSource clients benefit from improved financial performance, a higher level of predictability in their annuity stream and increased visibility over reported results. The company is privately held with funding from Benchmark Capital. For more information on ServiceSource, visit www.servicesource.com or call 415.901.6030.

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