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A recent study from CMap and Consultancy BenchPress has found that over 80% of consulting firms are run using spreadsheets, or a collection of standalone tools, with just 17% using a Professional Services Automation (PSA) system to run their firm.
Despite this, the study also found that consultancies using a PSA system experience significant growth, with higher utilization, better visibility of margin, and an increase in revenue per partner, with PSA adopters generating 7% higher utilization than those consultancies largely using spreadsheets.
The research revealed that over a third of non-PSA users are likely to adopt a PSA system in the next three years, as the PSA market is predicted to double in the same time frame. Recent adopters of PSA systems cited the inefficiency of their “patchwork” of tools and solutions as the main reason for making the jump.
In today's fast-paced business environment, consultancies need to be open to technology to help them remain relevant while providing a significant boost to their bottom line. With the PSA market set to double in the next few years, now is the time for consultancies to consider the benefits of implementing a PSA system.
These findings show that while many consultancies still use traditional tools and methods to run their firm, they also demonstrate the potential for growth and efficiency gains for those willing to adopt new technology. As the market for PSA systems continues to grow, consultancies need to consider the benefits that these systems can bring to their business.
“Consulting firms are rapidly realizing it’s time to ditch the spreadsheets and start integrating key project and resource management workflows in a Professional Services Automation (PSA) system. Optimizing utilization is consultancies’ single biggest lever for driving profit, and with clear evidence that PSA adopters generate 7% higher utilization vs. spreadsheets, it is little surprise that PSA adoption is forecast to double in the next three years.”
-Jon Stead, Chief Strategy Officer, CMap