PS COMPENSATION
Compensation goes to the heart of technology
professional services profitability and management.
Compensation is a key structural component for technology professional services (TPS) organizations, on par with organizational structure, business processes, metrics and skills.
There is a brutal reality facing TPS organizations in which compensation plays an important role. While the ability to increase billable rates continues to be under pressure, the cost of onsite consulting staff has not been decreasing, based on all information from the marketplace. These factors work together to create a significant impact on labor margins specifically, and on our ability to build, deliver, and optimize TPS businesses in general.
In short, because TPS organizations primarily deliver highly specialized services without the benefit of large scale global labor arbitrage, the cost needle is difficult to move. Compounding the problem is the fact that managing compensation for key roles–that is, how best to create the correct incentives for the right behaviors—continues to be something of a blind spot for many TPS organizations.
TSIA has been engaged since 2006 in addressing the dearth of information in the marketplace specific to TPS compensation, through research, writing, public speaking, and—importantly, a set of industry benchmarks against which TPS executives can gauge their own compensation practices.
Explore the following links to learn more about this critical topic:
There is a brutal reality facing TPS organizations in which compensation plays an important role. While the ability to increase billable rates continues to be under pressure, the cost of onsite consulting staff has not been decreasing, based on all information from the marketplace. These factors work together to create a significant impact on labor margins specifically, and on our ability to build, deliver, and optimize TPS businesses in general.
In short, because TPS organizations primarily deliver highly specialized services without the benefit of large scale global labor arbitrage, the cost needle is difficult to move. Compounding the problem is the fact that managing compensation for key roles–that is, how best to create the correct incentives for the right behaviors—continues to be something of a blind spot for many TPS organizations.
TSIA has been engaged since 2006 in addressing the dearth of information in the marketplace specific to TPS compensation, through research, writing, public speaking, and—importantly, a set of industry benchmarks against which TPS executives can gauge their own compensation practices.
Explore the following links to learn more about this critical topic: