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Bo Di Muccio
TSIA fields hundreds of PS member inquiries every year. Always among the most common service business challenges (SBCs) represented is how to improve professional services price performance and grow professional services revenue. That’s why for the last decade, TSIA has been capturing extensive professional services rates and pricing practices information in our Professional Services Market Rates Study. This study distills the latest developments in professional services pricing and collects detailed data surrounding 8 job titles at 3 levels in roughly 60 countries to provide our members with the most current market rates benchmarks and data. In this post, I’m going to share what this study can do for your organization through real-world examples of how it’s currently being applied to businesses in the industry.
To provide more context about exactly what can be achieved by applying the data gathered from TSIA’s Professional Services Market Rates Study to an actual business scenario, I spoke with Tim Matanovich of Value and Pricing Partners, one of TSIA’s esteemed Consulting Alliance Partners and a specialist in helping companies achieve better price performance. Here’s what he had to say.
Tim: “Value and Pricing Partners has been working with TSIA Members on offering design, value and pricing challenges for a nearly a decade now. I can honestly say, for pricing professionals, TSIA’s Professional Services Market Rates Study is a gold mine. Here are some examples of observations we’ve found with some of our clients using the data from this study:
For pricing professionals, TSIA's Professional Services Market Rates Study is a gold mine.
In addition, I've also just put together a video you can watch that shares 3 more case studies about value and pricing for professional services. This video has even more examples of TSIA's Professional Services Market Rates Study in use, as well as other TSIA resources.
By combining our own analysis of historical transactions, data science methods and TSIA data, such as that gathered from the Professional Services Market Rates Study, we formulate individualized treatment plans for any combination of region, product, customer, and project lifecycle. This allows our clients (and TSIA members who work with us) to go beyond rate setting and traditional discount control to establish value with their customers and compete more effectively. Just some of the areas we can help with include low profit business models (e.g. SaaS), weak offerings and value props, low value capture, aggressive price competition, high discounting, etc.
More intelligent pricing practices, beginning with use of the TSIA Professional Services Market Rates Study, allow you to step out of the race to the bottom and prepare a customer journey that is individualized, long lasting, and value-driven.”
TSIA’s Professional Services Market Rates study is free as part of your Professional Services TSIA membership. Using the data from this study, you can put your firm on the path to set rational, profitable pricing levels that are adaptive and outcome-driven. This can be a one-time exercise, or a modeled solution with machine learning capability that adapts and adjusts as you grow. Contact us today to learn more about this study and the many other great research initiatives TSIA has to offer that can help your organization stay competitive in the market and increase profitability.
Whether you’re already a TSIA member or have been considering membership, this is a way for you to quickly pay for your entire TSIA membership with the revenue generated from just one of your service lines.
Tim Matanovich, Value and Pricing Partners
Post Date: March 13, 2018
Bo Di Muccio, Ph.D., is the distinguished vice president of research, Professional Services, for TSIA. He is also the chairperson of the TSIA Professional Services Advisory Board. Using his nearly 15 years of experience in technology industry research, analysis, and consulting, Di Muccio develops and delivers research and advisory programs that help some of the world’s leading technology companies build and optimize their professional services business.
The Technology Services Industry Association (TSIA) is dedicated to helping technology and services organizations large and small grow and advance in the technology industry. Find out how you can achieve success, too. Call us at (858) 674-5491 or we can call you.