Vertical Industry Focus is the Key Differentiator for Leading Professional Service Firms According to SPI Research’s Newly Published Report, the 2010 Professional Services Maturity Model Benchmark

SAN FRANCISCO--(EON: Enhanced Online News)--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.

“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.”

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.

The 2010 Professional Services Maturity Model benchmark report was created by Jeanne Urich and R. David Hofferberth, P.E. Corporate sponsors included Citrix; Deltek; Microsoft; OpenAir/NetSuite, and Tenrox and association sponsors included IT Alliance and PS Journal.

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 PS Maturity Model Benchmark 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

The complete 213 page report, which contains 266 insightful charts and tables, is now available for $995.

To see the table of contents and purchase the report click: http://www.spiresearch.com/reports/reports/rpt10PSMM.htm

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.