SAN FRANCISCO--(BUSINESS WIRE)--According to Service Performance Insight’s “The 2012 Professional Services Maturity™ Benchmark” report the technology professional service industry is on fire! 2011 was a very good year as average net profit for the sector increased to 13.5%! Embedded service organizations (PS organizations within Software, SaaS and Hardware companies) were the biggest winners as their net contribution margin climbed to 17%. Independent PS organizations saw their net profits grow to 10.6%.
A strong recovery for the professional service sector began in 2010 and accelerated in 2011. This year’s highlights include: http://spiresearch.com/spi-research/reports/2012psmb.html
- Revenue growth: the leading indicators for growth — annual revenue growth, headcount increases, size of the deal pipeline and percentage of revenue in backlog — were all up in 2011, almost recovering to the pre-recessions highs seen in 2007. Year-over-year revenue growth (13.7%) has consistently outpaced year-over-year headcount growth (10.1%) which means PSO’s are continuing to ratchet up productivity.
- Salaries are up: After three years of layoffs, headcount and salary freezes, base salaries and incentive compensation increased across all major job categories. The average base salary for seven job titles (senior manager, project manager, business consultant, technical consultant, solution architect, account manager and training specialist) rose 4.8% in 2011 on top of an 11% rise the year before.
- Productivity continues to improve: The percentage of billable staff compared to total staff has risen every year from 67% in 2007 to 73% in 2011. At the same time average billable utilization across all global geographies and verticals has increased to 70% in 2011 up from 65% in 2008.
The complete 218 page report, which contains 252 insightful charts and tables, is now available for $995.
Click here to purchase: http://spiresearch.com/spi-research/reports/2012psmb.html
Corporate sponsors include: FinancialForce.com, Intacct, PS Journal, NetSuite, Projector PSA and SAP.
The 2012 Professional Services Maturity™ Benchmark report provides information gleaned from 825 PS organizations over the past five years. The report contains:
- Analysis of 177 key performance indicators (KPIs)
- Base and variable compensation for 11 job titles
- Eight PS vertical markets: Advertising/Marketing, Architecture/Engineering, IT Consulting, Management Consulting, PS within Hardware, PS within SaaS and Software companies
- Detailed income statements
PS Executives are saying…
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“I just finished reviewing the 2012 PS Maturity™ Benchmark. This is a treasure trove of information. I can’t think of a topic that isn’t reviewed in a detailed and insightful manner. This is especially true of topics like social media, collaboration tools, and service productization that are evolving rapidly. You have done an amazing job this year. Hats off!”
Mike Alsup
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“The PS Benchmark is incredibly valuable to us. We leverage it for identifying gaps in our organization as well as opportunities for substantial improvement. I use it to inspire my team to reach for higher standards. We also use it to guide our decisions on process, investments in people, and technology.”
Josh Baxter
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“We have used the PS Maturity Benchmark for many years to measure key aspects of our firm and to gauge the progress we have made. We have made some fundamental changes based on the benchmark to improve our firm’s overall results. I have not been able to find data as comprehensive from any other source.”
Gord Smith
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Service Performance Insight (SPI) is a global research, consulting and training organization dedicated to helping professional service organizations (PSOs) make quantum improvements in productivity and profit. In 2007, SPI developed the PS Maturity Model™ as a strategic planning and management framework. It is now the industry-leading performance improvement tool used by over 5,000 service and project-oriented organizations to chart their course to service excellence.