The 2012 Professional Services Maturity™ Benchmark Report

Last week, Service Performance Insight released The 2012 Professional Services Maturity™ Benchmark. SPI puts out this report every year to help Professional Service Organizations compare their yearly results to their "benchmark of peers". There was significant growth in the last year, and the results show that the technology professional service industry is booming!

SPI mentions that some of the year's highlights include:

Revenue growth: the leading indicators for growth — annual revenue growth, headcount increases, size of the deal pipeline and percentage of revenue in backlog — were all up in 2011, almost recovering to the pre-recessions highs seen in 2007. Year-over-year revenue growth (13.7%) has consistently outpaced year-over-year headcount growth (10.1%) which means PSO’s are continuing to ratchet up productivity.

Salaries are up: After three years of layoffs, headcount and salary freezes, base salaries and incentive compensation increased across all major job categories. The average base salary for seven job titles (senior manager, project manager, business consultant, technical consultant, solution architect, account manager and training specialist) rose 4.8% in 2011 on top of an 11% rise the year before.

Productivity continues to improve: The percentage of billable staff compared to total staff has risen every year from 67% in 2007 to 73% in 2011. At the same time average billable utilization across all global geographies and verticals has increased to 70% in 2011 up from 65% in 2008

One of our Partner's Gord Smith, speaks in the article about how Ideaca benefits from using the PS Maturity Benchmark report:

“We have used the PS Maturity Benchmark for many years to measure key aspects of our firm and to gauge the progress we have made. We have made some fundamental changes based on the benchmark to improve our firm’s overall results. I have not been able to find data as comprehensive from any other source.”

Gord Smith
Partner

Have a look at the press release featured on Business Wire and check out

www.spiresearch.com for more details on The 2012 Professional Services Maturity™ Benchmark Report.

 

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