2017 Professional Services Maturity™ Benchmark
Item Number: SPI17PSMB
The Professional Services Maturity™ Benchmark is designed to help Professional Service Organizations (PSOs) understand their relative performance compared to an expansive benchmark of peers. It provides visibility into critical business processes and key performance measurements so organizations can compare, diagnose and improve their own performance. It provides prescriptive advice so organizations can pinpoint current levels of maturity and visualize the steps required to advance to the next level. Service Performance Insight (SPI) Research first introduced the "New Professional Services Maturity Model™" benchmark report in January, 2008. Since that time more than 15,000 PS organizations have adopted it to chart their course to service excellence.
The report contains:
- 229 pages with 251 insightful charts and graphs
- Analysis derived from 416 Professional Service Organizations representing over 200,000 consultants
- Five-year trend analysis for 200 key performance indicators (KPIs)
- Detailed income statements
- Profiles for the Top 21 Best-of-the-Best service firms
It also includes detailed analysis of 18 Professional Services vertical markets that includes:
- IT Consulting: 133 firms representing ~ 63,000 consultants;
- Software PS: 57 firms (~ 32,000 consultants);
- Management Consulting: 46 firms (~ 15,000 consultants);
- SaaS PS: 41 firms (~ 9,000 consultants);
- Architects and Engineers: 35 firms (~ 23,000 architects and engineers);
- Other PS: 46 firms (~ 42,000 consultants);
- Value-Added Resellers: 14 firms (~ 1,000 consultants);
- Accountancies: 9 firms (~ 3,000 accountants and auditors);
- Marketing and Advertising: 9 firms (~ 1,000 consultants);
- Managed Services: 8 firms (~ 2,000 consultants);
- Research and development: 7 firms (~ 11,000 consultants);
- Hardware (and Networking) PS: 6 firms (5,000 consultants);
- Staffing: 5 firms (~ 1,000 consultants);
- Manufacturing: 3 firms (9,000 project-based professionals);
- Healthcare/Medical/Pharma/Biotech: 9 firms (~ 10,000 project-based professionals);
- Government Contracting: 1 firm (~ 1,000 project-based professionals);
- Construction: 2 firms (~ 100 project-based professionals);
- Public Sector: 3 firms (~ 10,000 project-based professionals).
The 2017 Professional Services Maturity™ Benchmark revealed industry growth of nine-percent, the first time it was below ten-percent in the past five years. The 416 PS organizations represented in this benchmark employ over 200,000 consultants who each produce, on average, $205,000 in annual revenue, the largest amount in five years! Collectively these firms generated over $35 billion in PS revenue. While profitability dropped slightly in 2016 from 2015 (15.5% to 14.2%), it still was better than average for the industry.
There are issues facing the industry, selling have become more competitive as evidenced by a lower bid-to-win ratio, but the sales pipeline and quarterly backlog have risen hinting to a better 2017! Employee attrition continues to rise as it becomes more difficult to find, hire and retain talent. Many PS firms have embraced Cloud applications to improve communication and collaboration and overall productivity.
As of this writing 2017 has just begun. While SPI Research expects volatility in the market, we also expect executives in every industry will now more than ever before depend on the advice and guidance given to them by leading consultants. No one can precisely predict the future, so having enough options available to ensure success regardless of how the market moves, will benefit PSOs significantly. Good luck over the next year!
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