Detailed research undertaken by CMap in partnership with Consultancy BenchPress shed light on the widespread usage of spreadsheets among consulting companies, as well as the major benefits enjoyed by those who use Professional Services Automation (PSA) technologies.
According to the report, more than 80% of consulting companies typically use spreadsheets or independent tools for their operations, while just 17% have adopted PSA systems to conduct their businesses.
Despite the dominance of conventional methods, the study found a strong link between PSA usage and a significant increase in consultancies.
Those using a PSA system reported increased utilisation rates, improved profit visibility, and a significant increase in revenue per partner.
For example, PSA adopters displayed an astounding 7% greater utilisation compared to their counterparts who mostly used spreadsheets.
According to the report, more than a third of consulting companies that are not presently using PSA systems want to do so over the next three years. This predicted spike is consistent with market forecasts of a doubling of the PSA market during the same era.
Respondents who recently switched to PSA systems identified the inefficiencies of their previous “patchwork” of tools and solutions as the key motivators for making the change.
In a dynamic business climate where agility and efficiency are critical, consultancies must embrace technology to remain competitive and increase their bottom line.
With estimates for a twofold increase in the PSA industry in the future years, the report emphasises the crucial need for consulting firms to investigate the benefits of establishing a PSA system.
The findings highlight a clear contrast in the consultant landscape: while the majority continue to use traditional tools, those embracing PSA systems demonstrate the potential for significant growth and operational efficiency.
As the market for PSA solutions grows, consulting firms are urged to consider the revolutionary benefits these systems might provide to their operations.
“Consulting firms are rapidly realizing it’s time to ditch the spreadsheets and start integrating key project and resource management workflows in a Professional Services Automation (PSA) system. Optimizing utilization is consultancies’ single biggest lever for driving profit, and with clear evidence that PSA adopters generate 7% higher utilization vs. spreadsheets, it is little surprise that PSA adoption is forecast to double in the next three years,” commented Jon Stead, Chief Strategy Officer at CMap.
The study serves as a wake-up call for consulting firms to reassess their operational strategies and consider the transformative impact of embracing modern technologies such as PSA systems.
With the industry evolving rapidly, those willing to adapt and innovate stand to gain a competitive edge in the increasingly competitive consultancy landscape.
For more information, you can visit https://www.cmap.io/blog/benchpress-press-release.
About CMap: CMap exists to help professional services companies win more work, deliver it more profitably and make better business decisions. With tens of thousands of users around the world, CMap’s end-to-end CRM, project and resource management software liberates consultants, architects and engineers from endless spreadsheets and disparate systems, providing a single platform for operational success.