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Service Performance Insight Business Solutions for the Service Sector

Product Type: Market Research Report
Published by: Service Performance Insight
Published: February 2007
Product Code: R3421-2
Description
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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