Press Releases
Tenrox Sponsors the 2010 Professional Services Maturity Model Benchmark
Vertical industry focus is the key differentiator for leading Professional Service firms according to SPI Research’s newly published report
Glendale, California - March 4, 2010
According to SPI Research’s “The 2010 Professional Services Maturity Model Benchmark” report the top performers concentrated on business process optimization in narrow and highly specialized vertical industries. Of the 225 professional service organizations that participated in Service Performance Insight’s research, top performers addressed specific industry issues such as retail price optimization; commercial real-estate portfolio management and call center optimization. Other top-performing firms focused on recession-resilient industries: not-for-profit fund raising; education learning systems and aerospace and defense. Only one firm in this year’s best-of-the-best was a large global systems integrator. SPI Research believes an intense concentration on specific vertical business processes must be a business priority for Professional Service organizations as competition and off-shoring have reduced horizontally-focused firms to little more than staff augmentation providers with low margins and limited client loyalty.
Tenrox sponsored the The 2010 Professional Services Maturity Model Benchmark because it believes that this report would help its clients by providing actionable insights and a comprehensive benchmark of key performance metrics. “As someone who runs a professional services team I found this report to be insightful and full of actionable information. Tenrox is a proud sponsor of SPI Research and supports any initiative that advances and improves project and service delivery,” expressed Mounir Hilal, VP Professional Services at Tenrox.
“Our survey of more than 400 service organizations shows that deploying best of breed Professional Services Automation software that is integrated with financials results in a 10% margin improvement and a 7% increase in resource utilization. The benefits grow significantly for larger organizations,” explains David Hofferberth, Managing Director at SPI Research. “The most successful and profitable service organizations have also integrated their PSA software with CRM and human capital management (HCM) solutions. Tenrox is recognized as an industry leader for its best of breed on-demand PSA solution and its strong integration expertise.”
The benchmark covers six professional service segments: hardware and networking; software and software as a service (SaaS); systems integration; managed services and management consulting.
The Top 15 firms significantly outperformed their peers and the benchmark average with almost double the revenue growth and 30% higher net profit.
| Top 15 Professional Service Organizations |
| Measurement |
Top 15 Firms |
Benchmark Average |
Advantage |
|
| Annual Revenue Growth |
6.0% |
3.4% |
76% |
| EBITDA |
34.5% |
26.6% |
30% |
| Annual Revenue per consultant |
$262K |
$201K |
30% |
| Annual Billable Hours per person |
1,685 |
1,362 |
24% |
| On-time projects |
92% |
78% |
18% |
| Reference clients |
80% |
73% |
10% |
The newly published SPI Research report identifies the growing trend towards less on-site project delivery as a significant productivity accelerator with almost 40% of all billable hours now delivered remotely. Real-time information visibility is a key enabler: best in class professional service organizations have instantaneous control over all facets of their operations, and deploy consistent processes for the management of projects and resources. They establish their differentiation through effective sales and marketing campaigns, which translate into higher bid-to-win ratios and a lower level of discounting.
Alan Waitt, Global Director of Consulting for ASI, observed, “This report is invaluable for any PS person who is responsible for either initiating a PS business or operating one at any stage of the maturity life cycle." Over 3,000 project and service-oriented organizations have come to rely on the fact-based analysis and deep insights SPI Research packs into its annual PS Maturity Model Benchmark report. The 2010 Professional Services Maturity Model benchmark report was created by Jeanne Urich and R. David Hofferberth, P.E. and provides information gleaned from 395 PS organizations over the past three years, 225 in 2009 alone.
The report contains:
- Analysis of over 170 key performance indicators (KPIs)
- Base, bonus and bill rate information for 11 job titles
- Six PS vertical markets: hardware and networking; software and SaaS; systems integration; management consulting and managed services
- Detailed profit and loss statements and expense ratios by PS vertical and organization size
- Comprehensive Glossary of financial terms for PSO’s Download a complimentary copy of the 213 page report, containing 266 insightful charts and tables right here: The 2010 Professional Services Maturity Model Benchmark.
Download a complimentary copy of the 213 page report, containing 266 insightful charts and tables right here: The 2010 Professional Services Maturity Model Benchmark.
About Service Performance Insight
Service Performance Insight focuses on the global service economy. We provide a unique depth of operating experience combined with unsurpassed analytic capability. In our consulting engagements, we help our clients ignite performance by objectively assessing strengths and weaknesses to develop a full-faceted improvement plan, with measurable time-bound objectives.
SPI Research provides an informed and actionable third-party perspective for service executives and technology providers. Our market research and reporting forms the context in which both buyers and sellers of information technology-based solutions maximize the effectiveness of solution development, selection, deployment and use.
About Tenrox
Tenrox is the only true workflow-driven project and service delivery solution for today’s globally dispersed project workforce. Tenrox Cloud PSA and Cloud PPM solutions are best of breed browser independent offerings built on the Microsoft platform. Tenrox’s intuitive user interface, easy to configure options, and quick connect technology simplify deployment, accelerate user adoption and make project workforce management fun. We have been around for 15 years and counting; growing profitably. Our field tested experience, deep integration expertise and commitment to a best of breed cloud-based strategy mean you get the best project and service delivery solution there is from a best of breed vendor solely focused on innovating; providing you with advanced functionality and a seamlessly integrated project portfolio management and professional services automation solution. Tenrox is big enough to be dependable, fast and innovative but small enough to actually listen to you.
Since 1995, Tenrox solutions have served more than 800 organizations in 50 countries such as: IBM, General Electric, US Army, The Pentagon, Port of Long Beach, Talisman Energy, ConocoPhillips, Eaton, Pioneer Natural Resources, Invensys Rail Systems, SNC Lavalin, Hydro Quebec, JDA Software, Guidance Software, SAS, SAP, Alstom, Thales, Amphenol, Rio Tinto Alcan, Abbott, PharmaNet, Telus, Alcatel Lucent, Yellow Pages Group, Corning, Family Health International, Oxfam, Estee Lauder, Willis Group Holdings, E*TRADE Financial Corp, and Butler University.
Tenrox project management software is available through direct sales channels and a network of worldwide partners. For more information about the company or its award-winning family of products, go to http://www.tenrox.com
Media Contact:
Marie Melchiorre
Tenrox Public Relations
450-686-7365
publicrelations@tenrox.com
Product or service names mentioned herein are the trademarks of their respective owners. |
|
|
| |
 |
“When we saw that Tenrox could also provide best in class resource and project management, it was clear this was the system we needed to build a cloud-based infrastructure for all of our needs as we continue to expand.”
Space150,
Claire C.,
CFO
|
|
|
