Many UK companies aren’t properly prepared for new EU service management legislation “Many UK companies aren’t properly prepared for new EU service management legislation” warns AFSMI UK President Uxbridge, Middlesex, xxth October 2004. Chris Farnath, the newly appointed UK President of AFSMI (the International Association for Services Management) has warned technology companies that they face commercial ruin if they continue to treat service management as of secondary importance. He made the remarks during his opening address to UK service management professionals at the recent Service Management Europe 2004 show. Highlighting new EU legislation such as the WEEE (Waste of Electronic and Electrical Equipment) and RoHS (Reduction of Hazardous Substances) regulations, Farnath said that service management will take on a completely new significance over the next two years - and companies that don’t plan for these changes today will face significant commercial disadvantage tomorrow. The WEEE regulations, which are now law and must be operational as of August 2005, make it mandatory that electronic and electrical equipment suppliers reclaim a substantial percentage of the content of all old equipment; with failure to comply possibly leading to a blanket trading ban right across Europe. WEEE puts responsibility for establishing ‘take-back’ infrastructure and reporting on compliance firmly in the hands of product producers. The RoHS regulations are expected to come into force in 2006 and will carry an equally harsh penalty for non-compliance. Farnath believes that a significant majority of UK companies aren’t properly prepared for these changes. Farnath, who is director of services for contact centre technology specialist Aspect Communications, came to the AFSMI UK chair three months ago at a particularly testing time for the service management industry. The reduction of middle-management in the service industry has reflected in a decline of membership in AFSM International over the last five years. “It’s getting harder and harder to differentiate a technology company’s offerings purely on the basis of delivering excellent service management” he claims. “Over time, individuals and companies have simply come to expect good service – so the true value of exceptional service is not recognised the way it used to be. What will change this picture significantly is the new EU legislation. There’ll be a sea change in the way service management is viewed by senior management – with failure to take it seriously having far broader commercial implications than ever before”. Under Farnath’s guidance and with the full support of its members – including senior management from BSkyB, Unisys and Canon – the fortunes of AFSMI have already shown a dramatic improvement this year. The association has become more pro-active in leading the Technology Driven Services Industry worldwide and discussing and providing roadmaps for new scenarios that create opportunities for more growth and profitability. A strong increase in corporate membership has been signalled - and the organisation has ambitious goals for the coming year. “We aim to establish strong leadership and enhance our position as a thought leader on service management thereby creating an environment for best practice sharing and networking amongst service management professionals” said Farnath. Julian Mosquera, Director LCP Consulting and Board Member of AFSMI UK, has been raising the profile of issues such as WEEE over the last two years. He commented, "Not only is it surprising how little action has been taken on a national and company level, but that this is matched by an alarming lack of awareness across senior management of the issues and business impact that they can have. When service management solutions are thought through, they can be seen to offer both strategic advantage and financial improvement." AFSMI has a White Paper available on its web site for those concerned about WEEE. Further information can also be found on the DTI Sustainability web address at http://www.dti.gov.uk/sustainability/weee/ About AFSMI Founded in 1975, the Association for Services Management International (AFSMI) is a global, not-for-profit, professional association. AFSM International continues to be the only vendor-neutral professional membership society dedicated to providing the educational programs and networking opportunities that enhance the success of executives, managers, professionals, and their companies involved in s-business. AFSMI is an invaluable resource for the information, news, training, staffing assistance, networking facilitation, research data, and published studies that our industry requires. AFSM International is the acknowledged leader in providing career development for s-business professionals. "S-business" (the services business) is the term coined by AFSMI to describe the technology services industry. S-business includes all of the activities, organisations, and individuals involved in providing customer services and support for technology-based products and solutions. For further information go to www.afsmi.org Press contacts: Simon Morris, Marketing Director and Board Member of AFSMI UK Tel: 01753 503302 simon.Morris@afsmi.org.uk Julian Mosquera, Director LCP Consulting and Board Member of AFSMI UK Tel: 01442 872298 julianm@lcp-ashlyns.Com Michael Gray, Michael Gray Associates, PR Agency Tel: 0208 744 9168 Michael@grayassociates.Co.uk

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