The shift toward outcome-based offerings in the technology industry has redefined what it means to create and manage a successful product and service portfolio. Typically, the term “product” refers to technology offers specifically. In an economic context, services are human-delivered technology services like technical support, consulting, and training that are often sold to support the product. 

Revenue growth from these human-led services, combined with revenue from technology sold, “as a service,” is currently outpacing technology product growth. The ability to package, price, and position your service offerings effectively is no longer optional; it’s essential. 

To help you stay competitive, we’re highlighting the need for effective service offer management (product management capabilities focused on service offers) and why it matters more than ever; how deploying the right people and processes to manage service offerings can level up your organization’s capabilities.

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Defining Service Offerings Management and Their Scope

TSIA defines offering management as designing, pricing, and optimizing service and technology offerings to align with customer needs and maximize revenue potential.

A compelling service offering, whether technical support, customer success, education services, managed services, or professional services, isn’t just a list of service-level agreements and features. It’s a complete value proposition built around:

• Target customer personas and their business challenges.
• A clear, compelling value proposition.
• Specific business outcomes the service helps achieve.
• Simple, standard packaging and pricing models.
• Focused, timely enablement for sales and marketing teams.
• A feedback loop for ongoing improvement based on customer feedback.

Leading organizations treat service offer management not as a one-and-done exercise, but as a formal, ongoing, and broadly collaborative lifecycle process. Unfortunately, many teams still operate without a defined practice for managing service offerings, leading to fragmented portfolios, missed revenue targets, and underwhelming customer satisfaction.

Top Service Offer Management Challenges

Building a portfolio of high-impact, profitable service offerings comes with a fair share of challenges. Based on ongoing research, benchmarking, and data from hundreds of members, we have identified some of the most common obstacles and solutions to address them.

1. Monetizing Customer Success

Organizations continue to struggle with turning customer success offerings into revenue-generating motions. Charging for adoption-focused services can drive higher NPS, stronger retention, and increased expansion; however, many teams lack clarity on where to begin or how to communicate the value effectively.

Solution: Develop customer profiles, define outcome-based packages, validate willingness to pay through market trends, and pilot tests that resonate with each specific customer.

2. Fragmented Offer Development

Many offer management processes are still developed in silos by support, professional services, or customer success teams without shared processes or unified frameworks. This results in inconsistent messaging and missed cross-functional opportunities.

Solution: Implement a standardized offer lifecycle process across all service lines. Establish centralized governance and cross-functional collaboration through an offer management platform.

3. Inadequate Collaboration With Product Teams

As the industry moves toward SaaS (Software as a Service) models, offers must blend technology solutions and services into a single outcome-based solution. However, many product teams remain focused on features rather than services.

Solution: Build tighter integration between the service and software company's product management. Jointly define customer outcomes and co-create offers that align with customer behavior and expectations.

4. Lack of Formal Capabilities

Most companies wouldn’t dream of launching a new product without a defined process. Yet, many still create services ad hoc without formal offer managers, governance structures, or go-to-market readiness.

Solution: Invest in dedicated offer management in SaaS roles, equip them with data-driven frameworks, and ensure accountability across the service offer and portfolio management landscape.

Related: The State of Offering Management 2025

Service Offer Management Best Practices

High-performing companies follow a consistent set of practices when managing service offers. Based on data from TSIA’s Offering Management research, here’s what the best-in-class are doing differently:

• Using a formal service offer lifecycle.
• Building cross-functional teams.
• Starting with the customer.
• Designing for outcomes.
• Launching like a product.
• Measuring and iterating.

These steps ensure each service offer is built for impact, backed by customer experience insight, and aligned with business goals.

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Integrating Service Offer Management With Customer Success and XaaS Models

The lines between technology and services blur as more companies shift to recurring revenue models and XaaS strategies. Today’s most effective service offerings are tightly integrated with customer management programs and product capabilities to deliver holistic outcomes.

Here’s how offering management plays a critical role in that shift:

• Customer success alignment: A well-structured strategy for managing service offers ensures that customer success offerings aren’t just reactive support, but a proactive engagement that customers value and are willing to pay for. Prioritizing value realization (customer success) is a key observation.
• XaaS portfolio integration: To remain agile in a cloud-managed or subscription-based environment, your products and services must be adaptable, modular, and continuously evolving. Effective offering management ensures your offerings align with customer segments and changing business needs. The convergence of product management and service offer management is a likely shift toward “value management” across previously siloed technology and services divisions. 
• Business transformation enablement: When done right, offering management becomes a core enabler of digital transformation, turning one-time services into repeatable, recurring revenue engines. This involves transformations in offering management functions (aligning features and pricing portfolios to customer outcomes), revenue functions (ability to sell business outcomes, grow existing customers, protect ARR), and delivery functions (ability to deliver what is sold profitably). 

Organizations that integrate these capabilities into their operating model position themselves for long-term success in terms of profitability and enhancing customer satisfaction.

Related: TSIA Offering Management Benchmarking

Why Service Offer Management Is Essential to Your Strategy

TSIA benchmark data establishes that pacesetter companies approach service offer management with the same rigor and structure as technology product management. They move beyond strategies that predominantly rely on cost-plus service pricing and embrace data-driven, customer-centric design, innovation, and cross-functional collaboration. Traditional cost-plus and market-based pricing models are increasingly unsuitable. 

Evolving pricing models to capture value is a top challenge. Value-based pricing, which accurately reflects the value delivered to customers, is gaining traction. TSIA data demonstrates that value-based pricing provides the best margin performance.

At TSIA, we’re here to help you price your services, grow your recurring revenue, and deliver offers your future customers can’t live without. The TSIA Portal provides everything you need to automate execution, leverage insights, and give the best service for every individual customer.

Related: The Slow Transition to Value-Based Offer Pricing

Your Key Takeaways

• Service offer management is essential for driving profitable growth in outcome-based and XaaS business models—it’s no longer a nice-to-have.
• Cross-functional collaboration and a formal service offer lifecycle are critical to creating scalable, customer-centric offerings that deliver tangible business outcomes. Formalizing offering management processes is recommended.‍
• Top-performing organizations integrate services formally as part of the value proposition, using data-driven tools, structured governance, and continuous iteration to stay competitive and aligned with customer needs.