The consulting industry has a long history of using traditional tools and methods to operate their companies, such as spreadsheets and other independent programmes. However, in our ever-changing digital environment, consultancies must stay current on new technologies in order to better the way their businesses work.
However, according to a recent CMap and Consultancy BenchPress study, more than 80% of consultancies are hesitant to embrace new technology, with only 17% using a Professional Services Automation (PSA) system to operate their businesses.
Despite this hesitation, the research discovered that consultancies that use a PSA system experience substantial growth, improved profit clarity, and an increase in income per partner, with PSA users producing 7% higher usage than consultancies that depend exclusively on standalone tools.
According to the study, more than a third of non-PSA users are likely to embrace a PSA system in the next three years, while the PSA market is expected to double in the same period. Recent PSA system adopters cited the inefficiency of their “patchwork” of tools and solutions as the primary reason for making the switch.
In today’s fast-paced business environment, consultancies need to be open to technology to help them remain relevant while providing a significant boost to their bottom line. Jon Stead, Chief Strategy Officer at CMap, said, “Optimizing utilization is consultancies’ single biggest lever for driving profit, and with clear evidence that PSA adopters generate 7% higher utilization vs. spreadsheets, it is little surprise that PSA adoption is forecast to double in the next three years.”
The consulting industry’s reluctance to embrace new technology may be due to a lack of comprehension of the advantages of PSA systems or a fear of change. However, the advantages of these methods should not be overlooked. PSA tools provide a unified platform for operational success, enabling consultancies to gain more work, execute it more efficiently, and make better total business choices.
Finally, consultancies must consider the advantages that these systems can bring to their businesses ahead of the predicted rise of the PSA market. Consultancies that are willing to adopt new technology will undoubtedly be in a better position to compete in a modern, rapidly changing business environment, with the potential for significant growth and efficiency gains.