Research Report

The State of Professional Services: 2018

The Role of Professional Services in the Customer Value Journey

In this report you’ll get top trends, practices, and observations on the outlook of professional services, including:

  • Continuing pressure on the PS business model. Despite steadily increasing project margins (helped partly by rising subcontractor margins), operating costs are rising, thus helping to drive a downward trend in net operating income.
  • Portfolio broadening. Non-attached (adoption, value realization, business consulting) revenues are increasing.
  • Flat financial KPIs. Many key measures of PS performance have been consistently flat over the last two years, most notably utilization rates and rate realization.
  • Customer time to value. Indicators of customer time to value are a mixed bag in these two-year trend views. Business days to develop and launch new services is trending down. However, share of repeatable revenues is flat, and the story around several other indicators of a PSO’s ability to accelerate customer time to value is rather unclear. Practices and metrics related to CTV is a topic to which we will return in this report.

The need for the PS function to define and maximize its role in the customer journey, in general, and in accelerating customer time to value, especially, will only increase this year and in the foreseeable future. Use this report as a guide to professional services success in 2018.

Research and industry insight from TSIA has helped to articulate and quantify challenges and opportunities better to senior management and benchmark our services against peers in the industry.

Dana Brants, Head of Services Marketing, SWIFT

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