Product Type: Market Research Report
Published by: Service Performance Insight
Published: February 2007
Product Code: R3421-2Description Professional services organization (PSO) executives must improve every aspect of their business in order to succeed against a backdrop of increased global competition, changing business models, workforce attrition, enhanced regulatory compliance and more demanding clients. Strong executive vision and leadership are a must. But a solid information foundation that will provide greater visibility and operational efficiency is also paramount to PSO success. The informational tools have grown over the past decade: from manual systems, to spreadsheets, to targeted applications, to integrated Professional Services Automation (PSA) and Enterprise Resource Planning (ERP) solutions.
This report describes the changing professional services economy and provides detailed results from a December, 2006 - January, 2007 survey of 83 PSO executives who are members of PSVillage (www.psvillage.com), an industry-leading collaborative portal for professional services organizations. It specifically analyses the results of organizations that have implemented either PSA or ERP solutions to automate and optimize the core business processes.
The benefits observed from this study should permeate services-driven organizations of all types. The goal for organizations of all sizes is to become more efficient in the use of human capital, business processes and financial resources.
Table of Contents
- PREFACE
- CHAPTER 1: EXECUTIVE SUMMARY
- CHAPTER 2: SURVEYOBJECTIVES
- CHAPTER 3: PSA SOLUTIONS
- PSA Defined
- The Benefits of PSA
- PSA Independent Software Vendors
- What Does an Integrated Solution Look Like?
- PSA Integration Points
- The Information Management Components of PSA
- PSA is Becoming Mission Critical
- CHAPTER 4: DETAILED FINDINGS
- Firm Demographics
- Pain Points
- Solution Requirements
- Solution Selection
- Organizations not using PSA
- Organizations using PSA
- Business Processes Changed
- Benchmarks
- Other Benefits
- Satisfaction with PSA and the Vendor
- Participant Interviews
- CHAPTER 5: PSA RETURN ON INVESTMENT (ROI)
- Inputs
- Model
- Variances
- CHAPTER 6: CONCLUSIONS
- APPENDICES
- Appendix A: Author Profile
- Appendix B: Related SPI Research
- Appendix C: Survey Instrument
- Appendix D: Independent Software Vendors
- Appendix E: Acronyms Used in This Report
- Figures
- Figure 1: PSA’s Integration with Existing Enterprise Applications
- Figure 2: PSA Integration with Business Mgmt. and External Comms.
- Figure 3: Organization Size
- Figure 4: Worker Locations
- Figure 5: Professional Services Sub-Vertical Markets
- Figure 6: Percent of Employees Billable
- Figure 7: Annual Projects Worked on Per Consultant
- Figure 8: Consultant Hourly Burdon
- Figure 9: IT Budget as a Percent of Revenue
- Figure 10: Engagement Fee Structure
- Figure 11: Implementation Cost Breakdown
- Figure 12: PSA Annual Cash Flow
- Tables
- Table 1: PSA Core Modules— Issues, Functionality, Metrics
- Table 2: Applications Integrated with PSA
- Table 3: Survey Respondent Demographics
- Table 4: Breakdown of Organizational Costs
- Table 5: Top 10 External Factors Affecting Organizational Success
- Table 6: Top 10 Internal Factors Affecting Organizational Success
- Table 7: Solution Module Need and Use
- Table 8: Factors Considered When Purchasing a PSA Solution
- Table 9: PSA ISVs Considered
- Table 10: Enterprise Resource Planning ISVs Considered for PSA
- Table 11: Project Portfolio Management ISVs Considered for PSA
- Table 12: PSA’s Effect on Serving Other Organizations
- Table 13: Reasons Why Organizations Have Not Purchased PSA
- Table 14: Leading Reasons for PSA Purchase
- Table 15: The importance of PSA in improving business processes
- Table 16: Satisfaction Ratings with PSA
- Table 17: Pre- and Post-PSA Deployment Benchmarks
- Table 18: Other Benefits of deploying PSA
- Table 19: PSA Vendor Satisfaction
- Table 20: PSO Firm Statistics - Pre PSA Deployment
- Table 21: PSA Deployment and Ongoing Costs
- Table 22: PSA Benefits
- Table 23: Enterprise Resource Planning ISVs
- Table 24: Professional Services Automation (PSA) ISVs
- Table 25: Project Portfolio Management (PPM) ISVs
- Table 26: Lexicon of Acronyms and Abbreviations
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