According to SPI Research, the leading independent technology services research firm, the 10th annual Professional Services Maturity™ Benchmark revealed revenue and headcount growth dipped to new seven-year lows, while employee attrition reached a ten-year high. Europe reported improvement while the Americas and Asia-Pacific experienced a decline. PS industry headcount growth (6.5%) slowed to the lowest level in 7 years while consulting workforce attrition rose to a new high of 13.5%.
The 416 PS organizations represented in this benchmark employ over 200,000 consultants who each produced, on average, $205,000 in annual revenue. Collectively, these firms generated over $35 billion in PS revenue.
Despite lower revenue growth and profits, many leading indicators improved in 2016. Revenue per consultant, project backlog, the size of the sales pipeline and the number of projects delivered on-time all made positive gains. In the face of turbulence, the overall fundamentals of the Professional Services industry remain strong with PSOs making tremendous strides in improving productivity. Today far less time and cost are spent on administration and travel as PS-specific business applications have enhanced productivity and virtual consulting delivery has reduced the burden and cost of travel.
Using information that is typically confidential, such as detailed income statements, the 229-page report analyzes 200 key performance metrics and includes 251 supporting charts and graphs. The report contains income statements and expense ratios for fourteen professional service (PS) vertical markets — including accounting, advertising, engineering, networking, IT consulting, managed services, management consulting, research, software, SaaS, and Value-added resellers. Profiles and success tips from this year’s Best-of-the-Best firms deliver fresh insights.
The tenth annual benchmark from Service Performance Insight draws on a database of 2,482 PS organizations to provide an in-depth analysis of PS metrics and performance. Purchase the report here for $1,295.
About Service Performance Insight
Service Performance Insight is a global research, consulting and training company dedicated to helping professional service organizations make quantum improvements in productivity and profit. In 2007, SPI developed the PS Maturity Model™ as a strategic planning and management framework which has become the industry-leading performance improvement tool used by over 15,000 service and project-oriented organizations to chart their course to services excellence.