It’s easy to agree that “recurring revenue” is predictable, stable income for any company. Recurring revenue becomes more important because it allows you to spend more of your energy in growing your business rather than getting new business or reaching the same revenue level you did the year before.
In order to generate more recurring revenues from their customers, Accenture (News - Alert) and ServiceSource have teamed up to form an alliance that makes it easier and faster for their customers to get and retain more recurring revenues from their customers. This alliance helps the customers to create multiple revenue (options) streams, resulting in cash flow in the business.
These multiple revenue streams have been created through various types of agreements such as hardware and software maintenance and support contracts, subscriptions offered by software as-a-service providers, and warranties for health and life science equipment.
Mike Smerklo, chairman and CEO of ServiceSource said in a statement, " Accenture and ServiceSource recognize the challenges associated with the recurring revenue sales process and see a big opportunity for technology companies to drive more recurring revenue — potentially $30 billion per year according to ServiceSource analysis — if they can transform this increasingly strategic piece of their business, In fact, these renewals often account for 30-40 percent of a technology company's revenues and as much as 50 percent of its profits."
Both the companies will combine leading technology, services and best practices to drive companies' top-line results around existing and emerging recurring revenue streams.
Accenture and ServiceSource will create a comprehensive "Recurring Revenue Blueprint" to help technology companies to identify recurring revenue opportunities. Accenture will offer capabilities in systems integration, consulting, business transformation, and predictive analytics. On the other hand, ServiceSource will install Renew OnDemand, its cloud-based application that offers the data management, sales automation and sales analytics capabilities needed to maximize recurring revenue.
Edited by Rory J. Thompson