NetSuite, Inc., the industry's leading provider of cloud-based financials / ERP software suites, today announced that for the fourth consecutive year NetSuite leads the Professional Services Automation (PSA) market with 26 percent market share in 2011, according to the SPI Research 2012 Professional Services Maturity Benchmark Report.
Eight of the 20 "Best of the Best" professional services organizations participating in SPI's study use NetSuite software to manage key processes. As evaluated by SPI, these "Best of the Best" NetSuite customers outperform their peers in such metrics as revenue, billable utilization and bid-to-win ratios, underscoring the value these firms derive from NetSuite's cloud-based, end-to-end services resource planning (SRP) and PSA solutions. NetSuite customers named as "Best of the Best" include Siemens PLM Software, NetSuite, Architech and Advent Software. A complimentary copy of the SPI report is available at netsuite.com/spi-benchmark-report.
"NetSuite is committed to delivering PSA and SRP solutions that impact our customers' bottom lines," said Edward Marshall, General Manager of Services, NetSuite. "The findings in the SPI report validate our efforts in delivering the best possible PSA and SRP solutions available to the market, and in delivering a solution that enables our customers to grow their businesses without getting bogged down in complex and siloed software."
The professional services industry and the usage of PSA software have grown over the past year according to the report, from an adoption rate of 51 percent in 2010 to 76 percent in 2011. Professional services revenue increased 13.7 percent, and the average net profit increased to 13.5 percent worldwide in 2011, according to SPI's study based on 825 professional services organizations.
"The 2011 SPI study finds that the professional services industry is on fire, with double-digit growth in major metrics," said Jeanne Urich, Managing Director at SPI Research. "The study also reveals that services organizations using PSA or SRP solutions consistently outperform their competitors and are enjoying strong revenue growth and higher margins. We congratulate NetSuite and its customers for their continued success in a competitive and fast-growing industry."
NetSuite's cloud PSA and SRP software help services organizations automate and manage key business processes, such as resource management, project management, CRM, billing and service delivery. NetSuite also allows organizations to manage growth and maximize productivity of current resources. NetSuite OpenAir can be tailored to fit the needs and processes of any company, providing automated workflow, which enables faster onboarding and frees management time to handle growth. Customers typically realize cost savings and new service delivery efficiency upon transitioning to NetSuite from disconnected application silos and spreadsheets. Global services organizations take advantage of NetSuite's multi-currency, multilingual and local taxation capabilities to expand business internationally with real-time global visibility across their entire business.
"Siemens PLM Software deployed the NetSuite OpenAir PSA suite to automate our systems and processes on one platform globally, reducing complexity and improving transparency and scalability," said Beat Neuhaus, Vice President, Global Services Operations, Siemens PLM Software. "Automating our services business on OpenAir has allowed us to improve global resource management and utilization while improving delivery margins and enhancing financial forecasting."
Other Key Findings of the Report
SPI's report notes that PSA has become increasingly important as services firms strive to improve the management and control of service execution, and states that PSA should be considered by any team with 10 or more employees. Other key findings include:
• Leading organizations using PSA saw as much as $50,000 more in annual per-consultant revenue compared to organizations not using PSA;
• Project managers at firms using SRP manage 5.6 projects concurrently, versus 4.1 for firms without SRP;
• Net profits rose to 17 percent for professional services organizations within technology companies, and to 10.6 percent for independent services firms;
• Percentage of billable staff has increased every year, from 67 percent in 2007 to 73 percent in 2011;
• Billable utilization has risen from 65 percent in 2008 to 70 percent in 2011.
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About SPI Research
Service Performance Insight (spiresearch.com) focuses on the global service economy. They provide a unique depth of operating experience combined with unsurpassed analytic capability. In their consulting engagements, they help service and project-oriented organizations ignite performance by objectively assessing strengths and weaknesses to develop a full-faceted improvement plan, with measurable time-bound objectives. SPI Research provides an informed and actionable third-party perspective for service executives and technology providers. Their market research and reporting forms the context in which both buyers and sellers of information technology-based solutions maximize the effectiveness of solution selection, deployment and use.
NetSuite, Inc. (netsuite.com) is the industry's leading provider of cloud-based financials / ERP software suites. NetSuite enables companies to manage core key business operations in a single system, which includes Enterprise Resource Planning (ERP), Accounting, Customer Relationship Management (CRM), and Ecommerce. NetSuite's "real-time dashboard" technology provides an easy-to-use view into up-to-date, role-specific business information.
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