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  • 26 Professional Service Automation Statistics You Must Read: 2019 & 2020 Data Analysis & Market Share

26 Professional Service Automation Statistics You Must Read: 2019 & 2020 Data Analysis & Market Share

Category: B2B News

The inherent customer-focused nature of the professional service industry has induced significant changes and innovations within the entire space. As professional service automation statistics have shown, the industry is changing, and fast. Notably, there are rapid technology developments, changing employee needs, and emerging client demands.

Consequently, there is an increasing urge for professional service firms to implement robust professional service automation software. As an industry player, you also need to keep your eyes firmly fixed on the changes taking place in the industry.

In this article, we’ve compiled the most critical professional service automation statistics you should know. The goal is to help you remain abreast of the fundamental industry changes and succeed in this increasingly competitive sector.  Having these data at your fingertips will help you adapt to changes with ease and devise ways to improve service delivery.

key professional service automation statistics

1. Statistics on Client Expectations

The tide is steadily changing, and customers have become the focal point of the professional service industry. Apparently, today’s customers are empowered, have high expectations, and are authoritatively driving change in the service industry. As a result, the need to meet customer expectations has become an important metric, one that service businesses should endeavor to achieve.

  • Client expectations are increasing in quality of work (51%), speed of service delivery (50%), cost of work (48%), transparency (37%), and accountability (37%). (Mavenlink)
  • Also, according to another professional services report by Mavenlink, a whopping 85% of service businesses acknowledge that client expectations are increasing. (Mavenlink)
  • 63% of customers expect a business to deliver new services more frequently now than ever before. (Salesforce)
  • Additionally, professional services industry statistics show that 68% of customers say that they would purchase more from a company that offers excellent service. (Gladly)
  • Professional services market statistics by Microsoft indicates that 54% of customers today have higher customer service expectation. (Microsoft)
  • Even the increased competition, professional service firms in the US generated a combined total of $2 Trillion in revenue in 2018. (Select USA)

Top 5 Areas Where Client Expectation Is Increasing

Top 5 Areas Where Client Expectation Is Increasing
Quality of work: 51%

Quality of work

51%
Top 5 Areas Where Client Expectation Is Increasing
Speed of service delivery: 50%

Speed of service delivery

50%
Top 5 Areas Where Client Expectation Is Increasing
Cost of service: 48%

Cost of service

48%
Top 5 Areas Where Client Expectation Is Increasing
Transparency : 37%

Transparency

37%
Top 5 Areas Where Client Expectation Is Increasing
Accountability: 37%

Accountability

37%

Credit: Mavenlink

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Takeaway

Meeting customers’ expectations remains an essential factor for a long-term service business strategy. This is because, with the increased expectation, customers are more likely to seek services from a firm that demonstrates relevant expertise to meet their needs.

Besides, today’s customers have shown a subtle inclination towards services that are offered on a per-project basis. For these reasons, if you are looking to earn continued business, you must expand services and optimize processes. Besides, you should run a business with added agility to raise satisfaction levels. More importantly, you must know the techniques for improving customer experience to enhance service delivery.

2. Professional Service Automation Software Market Statistics

Up until the last few years, the impact of disruptions and innovations on the professional service industry was less visible. However, recently, the marketplace has experienced rapid growth, and the speed of change is poised to continue to accelerate. This is mainly due to the agility of service providers and the call for higher speed and quality services by customers.

  • The market size will grow at a CAGR of 11.7% and is predicted to hit over $16 billion by 2025. (Grand View Research)
  • The communication and marketing firm sector is expected to grow at the highest CAGR of 15.5% during the focus period 2019 to 2025. (Grandview Research)
  • The global professional services automation software market is projected to grow at a CAGR of 11.9% to reach $1.576 billion by 2024. (Zion Market Research)
  • The IT professional services market size is expected to expand at a CAGR of 8.4% to reach $1.070 billion by 2025. (Grandview Research)
  • Of the three segments, Saas, IaaS, and PaaS, SaaS controls the largest market share at 68.7% of the professional services automation market. (Kimble Apps)
  • Also, according to a professional services market report by IDC, a premier global marketing intelligence firm, the public cloud services market expanded by 28.6% year over year in 2017 to reach $63.2 billion in revenues. (IDC)
  • Interestingly, professional service marketing statistics indicate that over 75% of service businesses have implemented professional services automation solutions. (Projector PSA)
  • Additionally, companies using PSA software have a better annual revenue per employee at $158,000 versus the $147,000 posted by businesses that have not implemented a PSA solution. (Upland Software)
  • According to Upland Software, companies that use professional service automation software have a better employee billable utilization rate of 72.1% compared to those that don’t use a PSA solution at 67.3%. (Upland Software)

professional services market size

What do these stats mean?

Change has become part of the professional service industry, and growth has taken a strikingly similar pattern across all sectors. The market is proving to be a rich goldmine, and going by the statistics, its size will grow enormously.

To respond, software providers have seized the opportunity, developing innovations to counter the growing demand. Competition amongst developers has intensified, and this is goods news for service firms. As it stands, startups and small businesses can now afford solutions that were exclusively reserved for industry behemoths.

3. Industry Challenges Statistics

Like every other sector of the economy, the professional service niche has its challenges. The industry is fraught with a host of problems that carries the potential to derail the growth of service businesses. However, data has shown that challenges emanating from project and resource management are the most prevalent.

  • The top challenges that service businesses faced in 2017 include: improving margins (38%), increasing revenue (37%), improving client satisfaction (30%), hiring and retaining top talent (29%), increased competition (23%), and lack of resource to complete work (18%). (Mavenlink)
  • Another report by Mavenlink intimated that 50% of service firms turned down work because they had no resources to get them done. In total, approximately 65% of service firms have turned down a project for various reasons. Besides, 31% of projects are not completed because of inadequate budget, and 30% of clients’ projects are not completed in time. (Mavenlink)
  • According to Hinge Marketing, 40% of management consulting businesses cite increased competition as a hamstringing challenge. (Hinge Marketing)
  • 32% of professional services firms find it difficult to forecast their staffing needs based on the impending demand for service. (Mavenlink)

Top Challenges Facing Business in Professional Service Industry

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Credit: Mavenlink

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Takeaway

There is no denying, challenges to the professional services businesses are aplenty. However, some of the challenges are of your own making, and thus, the remedy must come from within.

For example, you must evaluate your firm and learn how to manage your project teams more effectively to boost productivity. Besides, you should align your staffing resources and new tools to address typical challenges decisively. This can be achieved by implementing tools that empower you to creatively find employees online and offline. Most importantly, you must improve the service offering to raise satisfaction levels and expedite business growth.

Leading Professional Service Automation Software

  1. monday.com. Centralized storage and access to all information regarding projects are possible with this application. Get to know what makes it a top professional service automation software in this monday.com review.
  2. Wrike. This cloud-based software is dedicated to professional services and streamlines workflow with its automation capabilities. Read this Wrike review to learn more about what it offers.
  3. BigTime. Get rid of arduous processes using this integrated time management and billing software. Details are here in this BigTime review.
  4. QuickBooks Enterprise. Growing businesses can benefit from this accounting platform that automates estimates, proposals, and other documents. This QuickBooks Enterprise review can help you better understand the software’s capabilities.
  5. ProjectManager. Project planning and scheduling tools are the core features of this application. See what else it can do in this ProjectManager review.

4. Adoption of Modern Technology Architecture Statistics

Technology harbors immense promise for all sectors of the economy. The professional service niche is no exception. However, unlike in other areas, the service industry faces unique technology infrastructure challenges. For this reason, it’s becoming increasingly crucial for all leaders to adopt professional services software with caution.

For example, a lot of manual work is still needed to synchronize systems and ensure the delivery of high-quality services to customers. If systems are not in sync with the way a business works, they can easily stifle the potential of that business and hinder the accuracy of service delivery.

  • Systems currently implemented by service firms include; CRM (79%), accounting (77%), collaboration (70%), expense management (66%), time tracking (66%), project management (64%), resource management (64%), and BI solutions (61%). (Mavenlink)
  • 48% of professional services firms have implemented PSA solutions, and 32% plan to adopt PSA solutions in the coming year. (Mavenlink)
  • The top technological infrastructure challenges faced by service businesses include lack of clarity between systems, data accuracy issues, and manual work. (Mavenlink)

firms that have adopted PSA solutions

Takeaway

When they are implemented without a well-orchestrated policy, technological innovations can easily complicate business. For instance, applications meant to improve efficiency can easily cause the opposite effect when they are not seamlessly integrated.

For this reason, businesses in the professional services sector must know the outcomes of their technology architecture. Besides, they must adopt the perfect blend of systems to improve efficiency even as they strive to usher in relevant change.  Most importantly, small businesses should prioritize solutions that support basic operations and scale as your business grows.

5. Remote And Distributed Workforce Statistics

The demand for a more extensive selection of services from professional services providers has changed the way firms work. Also, the need to find relevant talent regardless of the location has intensified the influence of distributed workforces. Even more, the standardization of skills and expertise has inaugurated the widespread use of distributed teams and contract workers.

  • Hiring managers predict that 38% of fulltime staff, will be working remotely in the next 10 years. (Upwork)
  • Besides, Buffer found that 90% of remote employees plan to work remotely, all their career. (Buffer)
  • According to research done in 2015, approximately 76% of US workers feel comfortable when working in places other than an office. (FlexJobs)
  • More importantly, according to findings by freelancing site Upwork, 55% of hiring managers agree that remote work has become rampant.  (Upwork)
  • A report by Mavenlink (2019) predicted that there would be a 55% increase in the use of distributed teams by 2020. (Mavenlink)

6 Key Remote Work Statistics

6 Key Remote Work Statistics
Companies are embracing remote work: 63%

Companies are embracing remote work

63%
6 Key Remote Work Statistics
Skills are more specialized: 59%

Skills are more specialized

59%
6 Key Remote Work Statistics
Remote work is becoming more common: 55%

Remote work is becoming more common

55%
6 Key Remote Work Statistics
Companies using flexible talent: 53%

Companies using flexible talent

53%
6 Key Remote Work Statistics
Talent is hard to find: 39%

Talent is hard to find

39%
6 Key Remote Work Statistics
Remote work is the future: 38%

Remote work is the future

38%

Credit: Upwork.com

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Takeaway

It’s clear that the use of remote workers is poised for increased influence on the service industry. A look beyond the rising remote work models reveals another gleaming trend. Modern technological innovations have facilitated the rise and use of contract workers.

Today, both remote and contract workers are playing a massive role in the professional services business. However, connecting remote, distributed, and contract workers comes with a higher risk. It’s not surprising, then,  that many organizations view effective collaboration as a critical constituent to success. As such, service firms need to use effective team communication strategies to improve online collaboration.

Besides implementing PSA solutions, businesses must learn how to use online collaboration tools like video conferencing software. This way, it will be easier for service businesses to connect and work with the right talent regardless of their geolocation.

What Does the Future Hold for the Professional Services Industry?

There you have it, our compilation of the top professional services statistics you should know. Numbers don’t lie, and from the stats above, it’s clear that the professional services industry is rapidly changing. Today, service automation solutions are affordable, and small service firms can now find the perfect solution to boost productivity and improve efficiency.

However, the industry is evidently in constant change as firms attempt to widen their scope of services and start using remote workforces more than ever. The abundance of technology has complicated service operations, and it’s now fallen upon managers to come up with well-defined strategies to build more profitable ventures. Above all, service businesses must forestall and prepare to flex even more to be able to tap into technological innovations and the imminent, liquid workforce.

That’s not all: you must remember, customers mean everything to a service business. Because of this, even as you adapt to change, you must build your business around customer satisfaction, project success, and profitability. This means adopting effective planning policies and using the most relevant staffing resources to meet growing clients’ expectations while easing the pressure on your project margins.

The professional service industry is a wide scope, one that cuts across different fields such as task management, time tracking, and field service management. We are privileged to have all the information you need to make an informed decision when selecting a PSA solution for your firm. For example, you can read our guide on time tracking software to get helpful insights into managing complex projects.

By Jenny Chang

Senior writer at FinancesOnline who writes about a wide range of SaaS and B2B products, including trends and issues on e-commerce, accounting and customer service software. She’s also covered a wide range of topics in business, science, and technology for websites in the U.S., Australia and Singapore, keeping tabs on edge tech like 3D printed health monitoring tattoos and SpaceX’s exploration plans.

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