Service Performance Insight, a global research, consulting and training organization, recently published its 2011 Global PS Pricing Report. It was compiled on the basis of pricing information provided by 200 PS organizations representing 12,000 consultants worldwide.
The report provides an analysis of list prices and realized bill rates across a broad spectrum of service verticals and analyzes the increasing tendency toward off-site consulting delivery and the prevalence of different pricing structures in various geographic regions in the world
Rob Spreadbury, business operations manager for Global Professional Services at NCR Corporation stated that the SPI Pricing Study was an incredible tool that allowed internal benchmarking to be carried out across PS practices.
He further added, “With the SPI analysis, we can engage both our customers and salespeople in the right conversations around delivering value through our PS projects.”
According to the 2011 Global PS Pricing Report, claimed to be the largest and most comprehensive PS pricing study, the strong demand for cloud technologies and services have created a wide margin between SaaS (News - Alert) consulting rates and enterprise software realized rates. Cloud service providers are in a position to charge a 20-30 percent premium.
“Western European consulting organizations are now the global price leaders, with rates averaging 30 to 40 percent higher than their North American counterparts,” stated Jeanne Urich, Service Performance Insight managing director.
Todd Bursey GM FinancialForce PSA stated that the Global Pricing Report from SPI was incredibly insightful and very relevant to the current economic climate. He believed that the research study would help 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.”
In other news, SPI and FinancialForce.com, the cloud applications company, recently came out with a study that shows Salesforce CRM is the dominant front office solution in the professional services industry. By moving to the cloud, Salesforce CRM customers have achieved higher bid-to-win ratios, greater average revenue per project and a better deal pipeline as compared to users of other third party and home grown CRM systems.