Report: Service and maintenance contracts to bode well for integrators

According to a new report from market research firm IMS Research, security system service and maintenance will account for 33.4 percent of the systems integration market by 2014 as integrators look for ways to increase their RMR.

In addition to providing integrators with a steady cash flow over a long-term period, the report titled "The Americas Market for Security Systems Integration – 2010 Edition," also notes that service and maintenance contracts are also more profitable for the industry, as profit margins for service and maintenance can be 30 percent or higher, compared to 20 percent or lower for equipment.

Report author and IMS Research analyst Ewan Lamont says these service and maintenance contracts also provide integrators with greater resistance to an economic downturn and also make their companies more appealing to investors.

"Additionally, there are major benefits for end-users who can extend the life-cycle of a well maintained system or save money by outsourcing the services that they would have previously handled in-house," said Lamont. "One example of this is in the casinos market, where service and maintenance was traditionally handled by on-site technicians, but is increasingly being outsourced, providing new opportunities for security systems integrators."

For more information or to purchase a copy of the report, visit