(EMAILWIRE.COM, August 06, 2009 ) SAN DIEGO, August 6, 2009 – The Technology Professional Services Association (TPSA), has announced Q2 2009 results of the TPSA Service 50, a quarterly aggregation of the financial performance of 50 of the most influential technology solution providers. The quarterly report ranks and analyzes technology services providers and tracks critical trends in product-service mix, service margins, and product focus.

“Our research findings show that during the second quarter, product margins continued to be under pressure, but, interestingly, the pressure on top-line revenues appeared to slow down as operating profits held firm and services margins improved," said Bo Di Muccio, Ph.D., TPSA senior research director.

Key trends that emerged from The Service 50 Q2 study included evidence that companies are continuing to spend budget dollars on technology services, thus pure services providers are continuing to improve margin efficiency.

In addition, many software providers are successfully achieving profitability in the current economic downturn through increased services revenues, improved services margins, and improved operating incomes. However the hardware industry is facing product margin pressure combined with declining operating incomes.

"With a smaller service buffer and pricing pressure, the hardware industry is clearly taking the hardest hit from the economy, but is holding its own overall," Di Muccio added.

For more information on The Service 50 and other TPSA research, visit http://www.tpsaonline.com/research_overview.asp.

About TPSA
The Technology Professional Services Association (TPSA) is the first and only organization for executives who create, produce, deliver, manage, measure, and optimize technology services in the world’s leading corporations. For more information, visit www.tpsaonline.com.

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