Professional services automation software solutions integrate functions such as project management, resource management, billing and invoicing, human capital management and time recording to streamline the operations of legal, consulting, marketing and other professional services firms.
The PSA software market is expected to grow from $700M USD in 2017 to $1.2BN by 2022, demonstrating that professional services automation tools can provide IT consultancies, marketing agencies and legal firms a competitive edge.
What are the benefits of a PSA solution?
By integrating these functions, leaders in professional services firms are able to automate processes and improve key metrics within their businesses. Typically, by correctly implementing and using a professional services automation tool, businesses can improve resource utilization, improve cash flow and revenues, plus increase profits.
For example, imagine you are running an IT consultancy firm. With a professional services automation system in place, you can create opportunities when a client asks you to bid for an RFP, ensuring you retain enough margin to remain profitable. You can then estimate the costs for your proposal and check you have the right consultants and project managers in place as well as ensure that any software or hardware necessary can be purchased and paid for.
Once you win the business, you can then track every step of the project, as well as all costs and bill the client accurately and on time. When PSA is implemented across your business, you can quickly increase your labor utilisation and take control of your operations in real time. According to a survey, a midsize (173 employees) professional services organisation reported an expected ROI of $23M USD over 5 years by adopting a PSA tool.
What do professional services automation tools include?
PSA tools come in many flavors. Most PSA systems include at least project management, timesheets and billing, however others can offer more robust functionality covering financial management and accounting, customer relationship management (CRM), payroll and human capital management to provide an end to end process flow.
Popular PSA Software
Popular PSA software includes SAP Professional Services Automation, FinancialForce, NetSuite, Sage Intacct and more.
Who uses professional services automation (PSA) software?
PSA systems are now used by firms in many project based industries including:
- Architecture & Construction
- Environmental Consultancy
- Information Technology Consultancies, SaaS & Managed Service Providers (MSP)
- Marketing, Advertising & Communications
- Management Consultancies
- Legal & Law Firms
What’s the difference between PSA and ERP?
Enterprise resource planning and professional services automation can be both complementary or interchangeable systems. In some cases, niche professional services automation tools are integrated into classic ERP or accounting systems. In others, professional services solutions take on the same core responsibilities as an ERP such as accounting.
Whilst there may be benefits to running a PSA system alongside a traditional ERP system, a truly integrated ERP with PSA functionality provides the greatest level of integration and financial visibility into the business.
How do I choose a professional services automation tool?
Choosing PSA software for your firm can be a challenging process. With several solutions available on the market and each vendor fighting for market share, it can be hard to know who to trust and which solution best fits your business. It can also take hours to explain your needs, watch demos, get pricing, valuable time that most business leaders can’t sacrifice.
At ERP Research, we help organisations to find new PSA tools every day. We recommend evaluating PSA tools based on the following criteria:
- Functionality: does the software do what your business needs it to?
- User Experience: is the solution intuitive and easy to navigate for users?
- References: are peers within your sub-sector of a similar profile using the solution?
- Budget: does the solution meet your budget and provide a significant ROI?
- Roadmap: is the software vendor committed to delivering new functionality in the future?
For a more detailed overview, check our guide on how to successfully evaluate ERP & PSA software.
Shortlist PSA Software Today
At ERP Research we simplify and speed up the process of evaluating ERP & PSA software. We provide unbiased information and consultancy for free. This helps you shortlist and select PSA software faster, saving you time and money.
To get free unbiased advice and insights on PSA & ERP software, schedule a call with our specialist consultants today.
