2016 Professional Services Maturity™ Benchmark - PS Journal
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Item Number: SPI16PSMBPSJ
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The report contains:
- 214 pages with 237 insightful charts and graphs
- Analysis derived from 549 Professional Service Organizations representing over 350,000 consultants
- Five year trend analysis for 200 key performance indicators (KPIs
- Detailed income statements
- Profiles for the Top 20 Best-of-the-Best service firms
- Thirteen PS vertical markets:
- IT Consulting: 190 firms representing ~ 108,800 consultants;
- Software PS: 89 firms and ~ 52,485 consultants;
- Management Consulting: 68 firms and ~ 17,315 consultants;
- Architects and Engineers: 50 firms with ~ 21,425 architects and engineers;
- SaaS PS: 43 firms and ~ 25,020 consultants;
- Managed Services: 17 firms with ~7,785 consultants;
- Hardware (and Networking) PS: 16 firms with ~ 23,500 consultants;
- Research and development: 15 firms with ~ 38,660 consultants
- Value-Added Resellers: 14 firms with ~ 9,425 consultants;
- Accountancies: 12 firms with ~ 1,970 accountants and auditors;
- Marketing and Advertising: 12 firms and ~ 2,475 consultants;
- Staffing: 9 firms and ~ 21,660 consultants.
- Other PS: 13 firms and ~ 19,000 consultants
The 2016 Professional Services Maturity™ Benchmark revealed industry growth of more than 10 percent for the fifth consecutive year. PS segment vitality is evidenced by strong job growth, with year over year headcount expanding by 7.8%. The 549 PS organizations represented in this benchmark employ over 350,000 consultants who each produce, on average, $198,000 in annual revenue; collectively these firms generated over $69 billion in PS revenue. Even better, these firms reported strong earnings growth with average net profit moving up from 13.2% in 2014 to 15.5% in 2015.
On the horizon, PS headwinds appear to be picking up momentum. Major leading indicators such as the size of the sales pipeline, bid to win ratios and backlog were all down sharply in 2015. At the same time, voluntary and involuntary attrition has risen to 12.9%, the highest level since the recession. The gap between the best performing and worst performing PSOs continues to widen. This year the 300 (55%) lowest performing firms generated merely 2.1% in net profit while the top 100 (20%) generated 23.5% in net profit.