Few industries change as rapidly or evolve as continuously as the professional services industry. As the economies of developed nations continue to shift to be predominantly service-based, the firms that produce that output are continually reinventing themselves to overcome obstacles, satisfy market needs, and seize opportunities. Every year SPI Research surveys those firms and develops their annual Professional Services Maturity Benchmark. The 2018 Professional Services Benchmark shines light on the state of the professional services industry.
This past year saw services firms record the highest profits reported within the last decade, aided by technologies that allowed for more efficient delivery of work and utilization of resources. That, along with the highest headcount growth recorded in the past 10 years, suggests a market optimistic of opportunity yet to be tapped.
The industry does, however, face challenges to that growth. Several factors suggest an increasingly competitive landscape—including weaker pipelines, fewer wins per bid, slowing revenue growth, and a continuing shift towards riskier fixed price contracts.
The most successful organizations are reinventing themselves to cope with these challenges. They are shifting to subscription- and usage-based recurring revenue business models to diversify their offerings and to help build more predictable revenue streams. They are expanding globally to take advantage of the faster growth in the European market relative to the US and Asia Pacific regions. They are investing in infrastructure and evolving corporate cultures to support the natural transition of their staffs from Boomers to Millennials. Clearly, the firms that are able to adapt are the ones that will succeed.
All of this begs the question: In this environment of continual change, are your business systems keeping up, or are they holding you back?
Here at Projector, we are proud to have played a small role in the success of our clients by building Professional Services Automation (PSA) software designed to adapt to, manage, streamline, and simplify the needs of top-performing services firms, even as they change and evolve. We are also proud to have worked successfully with hundreds of the most successful firms in the industry, 42 of which have participated in this survey. Our congratulations go out to the three Projector clients who were recognized among the “Best of the Best” performers this year, one of which celebrated being the only organization to have consistently won the “Best of the Best” designation for nine years running.
Projector PSA is a proud sponsor of the work SPI does to help the professional services community measure and improve its performance, and we hope that it provides you with some perspective as you evaluate yours. We would enjoy the opportunity to speak with you about the challenges you face and how systems like Projector might help you turn those challenges into competitive advantages. We are pleased to have played a small part in bringing you this important work and hope the insight it contains will help you to achieve your goals no matter what surprises 2018 and beyond may bring.