The second half of 2010 saw the professional services market starting to emerge from one of the worst recessions in decades. Organizations were just starting to hire, and all of the key indicators, such as annual revenues, bill rates, and backlogs, were trending up. Last year, Service Performance Insight, in their annual PS Maturity Benchmark Report, predicted accelerated growth in 2011, and advised services organizations how to position themselves to capitalize on the nascent economic recovery.
True to form—and despite natural disasters in Asia, revolution in the Middle East, impending economic meltdown in southern Europe, and a sluggish recovery in the US—the global professional services market did indeed experience strong growth in 2011. SPI Research’s 2012 Professional Services Benchmark Report shows most key performance indicators significantly up, but not quite back to pre-recession levels, indicating both strength in the market and room for additional growth.
In 2011, smart professional services managers took the opportunity to invest. This year’s survey showed the greatest year-over-year gain in adoption of commercial Professional Services Automation solutions, rising from 51% in 2010 to 63% in 2011. This was fueled in large part by a 9% market share gain in users of Projector’s PSA software.
PSA solutions were also key to significant improvements in performance. This was evidenced by the dramatic advantages the top 10% performers had over the rest of the survey pool in terms of billability, utilization, employee retention, delivery effectiveness, and client satisfaction. The top performers grew their revenue 55% faster than the rest and enjoyed profit margins nearly double that of their peers. Of the top 10 participating firms that fell into this best-of-the-best category, every one of them had invested in a PSA application, and two of them had chosen Projector.
What’s remarkable about SPI’s 2012 PS Maturity Benchmark Report is that it not only provides exactly this sort of insight into performance, but it replaces supposition with data, backs up intuition with analysis. Within its pages lie the benchmarks that show how your organization compares not just to the market average, but also to its top performers. Just as significantly, it provides valuable, actionable visibility into some of the strategies and systems that helped the professional services elite achieve and exceed their business goals.
To see these perspectives and to start benchmarking your organization against your peers:
- Sign up to download the 2012 Professional Services Benchmark Survey Results
We hope the insight that it contains helps you to achieve your goals no matter what surprises 2012 and beyond may bring.