Professional services industry is in perfect shape - revenues and profits are growing. Maintaining full control over finance area becomes essential as the company develops. Scaling activities and increasing profitability is possible, however requires proper tools. Deltek IT solutions for advisory and consulting companies allow building competitive advantage and controlling financial results.
2019 Professional Services Maturity™ Benchmark* latest report prepared by the analytical company SPI Research shows that last year professional services industry recorded a growth of revenues of 9.7%. In the group of 622 surveyed organizations employing a total of 380 thousand consultants average annual income for each of them was 206 thousand USD.
Investigated organizations can also boast of consistently rising for a few years gains - the average annual net profit estimated from 2016 at the level of: 14,2, 16,8 and 18,5 %. How was this achieved? Primarily it is the result of growth of the so-called returned income and expenditure limitation of general and administrative expenses.
However companies face many challenges - external and internal. Taking into consideration the first ones - the unstable geopolitical situation and slowdown of global growth may be a particular problem in 2019. Dynamic growth rate of the industry is also increasing competition and therefore one of the main internal challenges, which consulting companies would face in coming years, is consistent improvement of financial results while creating competitive advantage. This is not only about increasing margins and profitability, but above all, reasonably controlling finance area before - due to the increasing scale of activity - it will slip out of control.
"Success requires consequence based on information - obtained thanks to technology and driven by data. Information that not only helps to achieve profitability but also optimize profits and at the same time impress customers and improve the quality of services provided. You need to use technology to work efficiently and create a lasting foundation for work focused on customers. If the technology is not integrated with all aspects of your consulting company, you risk not only not delivering the project but also organisational failure " - can be read in a new Every Dollar Counts report: Gain a Competitive Edge and Get control of your Consulting Company's Bottom Line** prepared by Deltek in cooperation with the Project Management Institute.
So how to ensure growth in coming years? How to generate more revenue per employee or project? How to protect income? How to manage costs? Of course one needs to focus on customers and strengthen co operational culture in organization, but defined sets of operational rules and continuous efforts leading to the improvement of constantly modified processes in relation to changing business priorities are also needed.
Finally there is also a need for appropriate, intended for the implementation of the specific consulting companies purposes, technological tools - fully integrated solution that includes financial area, customer relationships, resource management, projects management and equipped in analytical and reporting functions.
Only this will make clear overview of the financial situation that is updated in real time possible. Only then budgeting and planning ceases being awkward. In addition it also makes possible using precise measurements and indicators as well as determining qualitative and quantitative business goals for the acquisition and maintenance of customers as well as maximizing profits .. Only in such an environment effective measures aimed at ensuring the quality, cost controlling and customer acquisition can be run.
If you would like to find out more about environment optimization , processes improvement and the benefits of the actions undertaken in these areas and also learn the proven methods and best industry practice and how Deltek solutions may improve consulting company management, please contact us.
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