Over the last several months, ESG Research has been performing a research project on oXya’s managed services for SAP. We hired ESG—a reputable IT research firm—to validate our services and unique offerings, including a dedicated team that is assigned to each customer, and our ‘all inclusive’ offering for a fixed monthly fee.
The end result can be seen in the below brand new video, but it wasn’t a fast nor easy process to get there. For those who think “OK, oXya paid them so they’ll say anything asks them to”, my answer is – no, it doesn’t work this way. As a reliable research company, ESG won’t say anything we ask them to, just because oXya hired them. We needed to prove to ESG, every step of the way, that we indeed deliver everything we claim. In fact, it’s similar to how we needed to pass multiple tests by SAP Corp over the past year, in order to get SAP’s GLOBAL certifications for SAP HANA® Operations Services, Cloud Services, Hosting Services, and of course – an SAP Global Partner certification. We just recently received all these global certifications (we already had certain certifications for many years, but not globally), and are very proud of that. See our SAP certification logos in this blog and in the video.
(oops, not sure I’m supposed to talk about the certifications… I may have just revealed something that we planned to release next month, before SAPPHIRE Orlando, to attract more people to come visit us at the large and amazing Hitachi booth; marketing won’t be happy…)
Let me tell you a little about the “behind the scenes” that led to this video; we worked really hard to prove to ESG that oXya does deliver on what we claim.
Nik Rouda, Senior Analyst with ESG Research, was skeptical about two main things:
- Personal Touch & Dedicated Team. Our commitment is to assign a dedicated team with all relevant expertise (Basis, DB, OS, HW, etc.) to each of our customers. This is what we’ve been doing since oXya was founded, back in 1998. Nik was especially skeptical about our ability to grow globally and continue with that approach. After all, none of our global competitors operates this way; when you call them with an issue, you get a different support person each time, from somewhere around the world; often they don’t know you nor your SAP systems, and your ticket circulates between various silo teams, until your issue was resolved. This kind of service significantly delays the time to resolution, and make customers unhappy (I wrote last month about the oXya unique delivery model, versus the standard model).
- ‘All Inclusive’ Service. Another thing that Nik was doubtful about is our commitment for an ‘all inclusive’ service for a fixed monthly fee. Many people believe this sounds insane from a financial perspective, and especially since we don’t suggest multiple change management ideas to customers, like many of our competitors do (and they also charge you and arm and a leg for that, of course). For oXya, having long-term customers who are happy and renew their service with us, time and time again, is worth all this. First, it’s our company values of Commitment, Trust, and Service that are driving us. But even more so, if you think of the acquisition cost for a new customer, or the cost of customer churn, you’ll understand why our approach also makes perfect sense from a financial perspective.
BTW, as part of the background work preparing for interviews with Nik, we wanted to learn what is our real customer churn, and how happy our customers are with oXya’s services. Here are the results:
- As of this month, March 2016, oXya has ~335 enterprise customers around the world.
- Over the last 5 years, oXya lost 2 customers who did not renew their services with us (yes, that’s not a mistake – just 2 customers in 5 years!). That’s a churn rate of 1% in five years!
- One of these two customers, BTW, did not renew its service contract with us since they were acquired, and the acquiring company worked with a different SAP managed services provider. That loss of a customer felt bad, but it had nothing to do with our service, and there was nothing we could have done to keep that customer.
Let’s back to the “behind the scenes” story. In order to prove our service commitments and claims, Nik asked to meet with our customers, and he did. He held long interviews with customers, and heard from them exactly what we tell the market and what every prospect hear from us – about our great and committed service, which includes a dedicated team that knows the customer very well and the customer knows all team members; the 'all inclusive' service and the fact that we don’t look for ways to overcharge our customers; and much more.
We also proved to Nik how, nearly a decade ago, oXya expanded its services beyond the EMEA market, and built successful service and hosting centers—with local teams—in Americas and APAC (our Americas operations will celebrate 10 years next year). Over the last year, since Hitachi acquired oXya, we’ve been expanding more rapidly, yet we are still passionate about maintaining our service levels, personal touch and dedicated team, which are what brought us thus far and have been the basis of our amazing success and happy customers.
At the end of the process, Nik acknowledged that we indeed managed to grow and expand significantly, on a global basis, while still maintaining our unique service offerings. Still, he was a bit hesitant and skeptical whether we will be able to continue growing at this fast pace, and still maintain the same type of services and levels of service. You can hear that in the video, when he talks about our future growth, and that’s understandable – he is an analyst, so he needs to be cautious.
For us at oXya, on the other hand, there’s no question that we’re moving forward exactly like we operated thus far, and that we’re not going to let anything harm or change our amazing service, not even continued fast growth. Customer satisfaction is in our core DNA, and we’ve proven that time and time again. We also have a unique, internal model for how we train new SAP experts and build our teams for fast growth, but that’s something for a different blog.
So enjoy this video, and I hope to see many of you at SAPPHIRE – stop by the Hitachi booth, look for the oXya team, and feel free to discuss your SAP challenges with us. You can also email me at any time, to email@example.com.
Melchior du Boullay
Managing Director, Americas
oXya, a Hitachi Group Company
Melchior du Boullay is Managing Director, Americas at oXya, responsible for all of oXya’s operations across North, Central and South America since 2007, when oXya started operating in the Americas. Melchior has nearly 15 years of experience as an SAP Basis admin and technical consultant, SAP project manager, SAP account management, and business development.
oXya, a Hitachi Group Company, is a technical SAP consulting company, established in 1998. oXya provides ongoing managed services (outsourcing) for enterprises around the world. In addition, oXya helps customers that run SAP with various projects, including upgrades and migrations, including to SAP HANA. oXya currently employs ~600 SAP experts, who service 335 enterprise customers and hundreds of thousands of users around the world.