Why Retail Field Service Delivery Is In Crisis

By Wael Mohammed, Field Nation

After two years of pandemic-related disruptions, retailers are ready to get out of survival mode and start investing in the future–especially in their IT infrastructure and digital transformations. In fact, IT spending as a revenue factor has increased on average by 40 to 50% since 2019, according to the global research and advisory firm IHL Group.

But it won’t be smooth sailing for retailers. While they may be ready to implement their IT improvements, finding talent to do the work won’t be easy. Right now, there are:

• 700,000 open IT jobs in the United States (Comptia)
• About 40,000 posted field service technician jobs (Indeed.com)

The rise of IT projects and the lack of IT talent to implement them is a massive challenge facing the industry. In our work with clients across the country, we see three primary factors behind this field service delivery crisis.

Reason #1: The Pandemic Changed Consumer Preferences

It is hard not to notice that malls, restaurants, and airports are using more self-checkout options. The trend started before COVID, but pandemic-era consumer preferences accelerated the shift toward digitalization and connected devices. 

In turn, this created a need to install and maintain self-checkout platforms. According to our data, demand for this type of work increased 42% from 2020-to 2021 and shows no signs of stopping in 2022. Wireless work is also up 36%.

Changing consumer behavior is driving this growth. They expect a certain level of ease when ordering items online. And now, they want shopping in brick-and-mortar stores to be just as easy. Unfortunately, it’s becoming tougher to deliver on their expectations due to talent shortages.

Reason #2: Talent Is Harder To Find

The current labor landscape gives retailers more reason to invest in tech-driven options that ensure a positive customer experience. Self-serve point-of-sale options become even more critical when you don’t have employees to check people out.

Additionally, many retailers are updating payment terminals and adding more store communication platforms to empower the team members they do have.

To stay competitive in the future, retailers must make life easier for their smaller-than-usual teams, and investing in technology is their most sustainable solution.

Reason #3: Inventory Management Is Now Critical For Retail Success

Driven by supply chain disruptions and product shortages, 47% of retailers cite inventory visibility as their number one reason for investing in new technology (according to a recent survey by the IHL Group). Retailers also want to:

• Refresh POS infrastructure (46%)
• Update OMS (37%)
• Add self-checkout (33%)
• Update payment terminals (28%)

These are all worthwhile investments. Yet, based on both the data and the conversations I’m having with clients, inventory challenges are putting the most pressure on retailers when it comes to finding new technology solutions.

Unprecedented IT Spend Levels

It is clear that retail is going through a significant digital transformation. According to IHL Group, retail IT spend (as a percentage of revenue) has increased a whole percentage point since COVID-19 started. While this increase may not seem significant, it equates to what IHL Group calls a “once-in-a-generation increase in IT spend.”

Now the question is: who will manage this technology investment? And when the new technology is implemented, who will support it?

One option is to partner with an IT support vendor that connects you with independent contractors through a talent platform. This on-demand approach is built for the ebb and flow of business. It also meets the needs of many in today’s IT workforce.

We will continue to see retailers invest in IT infrastructure over the next 12 months, especially in networking upgrades that support wireless and connected devices. Retailers and restaurants will also have to invest in their fiber infrastructure. The result? More in-use devices will require more low voltage data and voice cables.

Labor shortage issues will continue, too. This will require field service organizations in the retail sector to identify new strategies for finding the skilled talent and geographic reach they need to meet the industry’s demand.  

About The Author

Wael Mohammed is the executive vice president of product management and strategy for Field Nation.