Cloud Professional Service Bill Rates Increase While Enterprise Software Rates Decline

Monday, October 10, 2011 6:08 AM

Service Performance Insight Publishes Professional Services Global Pricing Report

According to Service Performance Insight's 2011 Global PS Pricing Report, "SaaS consulting rates now surpass enterprise software realized rates by a wide margin.Built on strong demand for cloud technologies and services, cloud service providers are able to charge a 20 to 30% premium." The Global Pricing Report is the largest and most comprehensive PS pricing study ever published based on pricing information provided by 200 PS organizations representing almost 12,000 consultants worldwide.

Rob Spreadbury,Business Operations Manager Global Professional Services, NCR Corporation stated, "The SPI Pricing Study is an incredible tool. The depth of the study allows us to do internal benchmarking across our PS practices - price, utilization, staffing. With the SPI analysis, we can engage both our customers and salespeople in the right conversations around delivering value through our PS projects."

The study provides analysis of list price and realized bill rates across a broad range of professional service verticals, geographies and job levels around the globe. It analyzes the growing trend toward more off-site consulting delivery and the prevalence of different pricing structures: time and materials, fixed-price and shared risk/performance based. The report provides an unprecedented view of Professional Service workforce distribution and composition by industry segment through an analysis of organization structures for Management Consulting; IT Consulting; Software and SaaS; and Hardware and Networking Professional Services.

"The Global Pricing Report from SPI is incredibly insightful and very relevant to the current economic climate," said Todd Bursey GM FinancialForce PSA. "Services teams concentrate on utilization, and less on rate realization.Focusing on pricing strategy is the key to doing more with less to achieve persistent profitability. The research helps service organizations understand how they measure up, where they can improve to increase margins and how they can properly position their services in the market. This is what every services organization is looking for."

"Western European consulting organizations are now the global price leaders, with rates averaging 30 to 40% higher than their North American counterparts," stated Jeanne Urich, SPI Managing Director. Geographies covered in the report include: North America; Western Europe; East Asia (China and Japan); Central Asia (India and Pakistan); Australia and New Zealand; South America; Eastern Europe; Africa and the Middle East.

To purchase a copy of the report, please follow this link: http://www.spiresearch.com/reports/reports1.htm

About Service Performance Insight

Service Performance Insight (SPI) is a global research, consulting and training organization dedicated to helping professional service organizations (PSOs) make quantum improvements in productivity and profit. In 2007, SPI developed the PS Maturity Model™ as a strategic planning and management framework. It is now the industry-leading performance improvement tool used by over 5,000 service and project-oriented organizations to chart their course to service excellence.

(Source: Business Wire )
(Source: Quotemedia)

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