March 9, 2010 (MMD Newswire) -- According to SPI Research's "The 2010 Professional Services Maturity Model Benchmark" report the top performers concentrated on business process optimization in narrow and highly specialized vertical industries. Of the 225 professional service organizations that participated in Service Performance Insight's research, top performers addressed specific industry issues such as retail price optimization; commercial real-estate portfolio management and call center optimization. Other top-performing firms focused on recession-resilient industries: not-for-profit fund raising; education learning systems and aerospace and defense. Only one firm in this year's best-of-the-best was a large global systems integrator. SPI Research believes an intense concentration on specific vertical business processes must be a business priority for Professional Service organizations as competition and off-shoring have reduced horizontally-focused firms to little more than staff augmentation providers with low margins and limited client loyalty.
Tenrox sponsored the The 2010 Professional Services Maturity Model Benchmark because it believes that this report would help its clients by providing actionable insights and a comprehensive benchmark of key performance metrics. "As someone who runs a professional services team I found this report to be insightful and full of actionable information. Tenrox is a proud sponsor of SPI Research and supports any initiative that advances and improves project and service delivery," expressed Mounir Hilal, VP Professional Services at Tenrox."Our survey of more than 400 service organizations shows that deploying best of breed Professional Services Automation software that is integrated with financials results in a 10% margin improvement and a 7% increase in resource utilization. The benefits grow significantly for larger organizations," explains David Hofferberth, Managing Director at SPI Research. "The most successful and profitable service organizations have also integrated their PSA software with CRM and human capital management (HCM) solutions. Tenrox is recognized as an industry leader for its best of breed on-demand PSA solution and its strong integration expertise."
The benchmark covers six professional service segments: hardware and networking; software and software as a service (SaaS); systems integration; managed services and management consulting.
The Top 15 firms significantly outperformed their peers and the benchmark average with almost double the revenue growth and 30% higher net profit.
Top 15 Professional Service Organizations
Measurement Top 15 Firms Benchmark Average Advantage
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Annual Revenue Growth 6.0% 3.4% 76%
EBITDA 34.5% 26.6% 30%
Annual Revenue per consultant $262K $201K 30%
Annual Billable Hours per person 1,685 1,362 24%
On-time projects 92% 78% 18%
Reference clients 80% 73% 10%
The newly published SPI Research report identifies the growing trend towards less on-site project delivery as a significant productivity accelerator with almost 40% of all billable hours now delivered remotely. Real-time information visibility is a key enabler: best in class professional service organizations have instantaneous control over all facets of their operations, and deploy consistent processes for the management of projects and resources. They establish their differentiation through effective sales and marketing campaigns, which translate into higher bid-to-win ratios and a lower level of discounting.
Alan Waitt, Global Director of Consulting for ASI, observed, "This report is invaluable for any PS person who is responsible for either initiating a PS business or operating one at any stage of the maturity life cycle." Over 3,000 project and service-oriented organizations have come to rely on the fact-based analysis and deep insights SPI Research packs into its annual PS Maturity Model Benchmark report. The 2010 Professional Services Maturity Model benchmark report was created by Jeanne Urich and R. David Hofferberth, P.E. and provides information gleaned from 395 PS organizations over the past three years, 225 in 2009 alone.
The report contains:
• Analysis of over 170 key performance indicators (KPIs)
• Base, bonus and bill rate information for 11 job titles
• Six PS vertical markets: hardware and networking; software and SaaS; systems integration; management consulting and managed services
• Detailed profit and loss statements and expense ratios by PS vertical and organization size
• Comprehensive Glossary of financial terms for PSO's Download a complimentary copy of the 213 page report, containing 266 insightful charts and tables right here: The 2010 Professional Services
Maturity Model Benchmark.
Download a complimentary copy of the 213 page report, containing 266 insightful charts and tables right here: The 2010 Professional Services Maturity Model Benchmark.
About Service Performance Insight
Service Performance Insight focuses on the global service economy. We provide a unique depth of operating experience combined with unsurpassed analytic capability. In our consulting engagements, we help our clients ignite performance by objectively assessing strengths and weaknesses to develop a full-faceted improvement plan, with measurable time-bound objectives.
SPI Research provides an informed and actionable third-party perspective for service executives and technology providers. Our market research and reporting forms the context in which both buyers and sellers of information technology-based solutions maximize the effectiveness of solution development, selection, deployment and use.
Contacts: SPI Research
R. David Hofferberth, P. E.
513.759.5443
Jeanne Urich
650.342.4690
About Tenrox
Tenrox online project management software solutions empower client companies to meet the challenges of globalization, enterprise fragmentation and increased regulatory scrutiny. Available on-demand or on-premise, Tenrox project management software solutions have served more than 800 organizations in 50 countries, maximizing project and resource management efficiency, data security and reliability. Since 1995, Tenrox has been offering its project management software tools to several, high profile clients such as GE Infrastructure -GE Fanuc, Rio Tinto Alcan, E*TRADE Financial Corp, Blue Cross Blue Shield NC. Alstom, IBM, SNC Lavalin, Hydro Quebec, Pioneer Natural Resources, Westinghouse Rail Systems, SAS, Thales, US Army, The Pentagon, Talisman Energy, Oxfam, Thermo Fisher Scientific, Estee Lauder and Wyeth. Tenrox project management software is available through direct sales channels and a network of worldwide partners. For more information about the company or its award-winning family of products, go to http://www.tenrox.com
Media Contact:
Marie Melchiorre
Tenrox Public Relations
http://www.tenrox.com/
877-483-6769 Ext. 4603
publicrelations@tenrox.com
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