The PS Maturity™ Benchmark is the world’s most respected authority for the technology services sector.
Today, SPI Research, the leading independent research and consulting firm dedicated to helping professional services (PS) organizations make quantum improvements in productivity and profit, published the 13th annual Professional Services Maturity™ Benchmark.
For professional service organizations, 2019 was year of smooth sailing with improvements shown in most major indices. Signs of global consulting prosperity were revealed as annual revenue generated per consultant reached a new high of $207K! Revenue per employee was equally impressive reaching an all-time peak of $170K! Service organizations are benefiting from the increased use of integrated business applications to push productivity to new levels.
The 513 Professional Services organizations represented in this benchmark employ nearly 275,000 consultants; collectively these firms generated over $43 billion in PS revenue.
The important billable utilization metric, which indicates the number of annual hours consultants are doing productive, billable work, improved to 1,435. Equally important, attrition, which measures the percentage of employees who voluntarily or involuntarily resigned during the year, declined to 13.2%, down from 13.9% in 2018. Given a massive skilled talent shortage, a decrease in attrition has a major impact on bottom-line profit as it can cost over $150,000 to replace a valued consultant in the technology services arena.
An important indicator of client satisfaction, “Client referenceability” improved from 71.9% in 2018 to 72.2% in 2019. The survey asks firms to report the percentage of their clients who are referenceable. In other words, satisfied clients who would act as a reference for their products and services.
Using information that is typically confidential, such as detailed income statements, the 196-page report analyzes 138 key performance metrics and includes 209 supporting charts and graphs along with income statements and expense ratios for ten professional service (PS) vertical markets — including accounting, architecture and engineering, government contractors, IT consulting, marketing and advertising, management consulting, software, SaaS and VARs (Value-Added Resellers). Profiles and success tips from the top 25 Best-of-the-Best firms deliver fresh insights.
The thirteenth annual benchmark from Service Performance Insight draws on a database of over 6,000 PS organizations to provide an in-depth analysis of PS metrics and performance. Purchase the report here for $1,995.
About Service Performance Insight
Service Performance Insight is a global research and consulting company dedicated to helping professional services 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 35,000 service and project-oriented organizations to chart their course to services excellence.