SPI Research Study Finds More than Half of Top Performers Run NetSuite Professional Services Automation (PSA) or Services Resource Planning (SRP)
Research Shows that Integrated Business Suites Drive Greater Profitability, Revenue and Client Satisfaction
NetSuite Inc. (NYSE: N), the industry's leading provider of cloud-based financials / ERP and omnichannel software suites, today announced its professional services automation (PSA) and services resource planning (SRP) solutions are in use at seven of the professional services organisations identified as “Best-of-the-Best” by Service Performance Insight (SPI Research), the leading research consultancy in the professional services industry. The findings are included in the SPI Research 2014 Professional Services Maturity Benchmark, an in-depth report based on a study of 238 professional services firms.
Of the 238 participating organisations, the “Best-of-the-Best” firms outperformed their peers and the benchmark average with significantly higher profit and per-project revenue, more satisfied clients and better service execution, SPI Research reported. The seven top performers running NetSuite are Agencyport Software, Campus Management, Charles River Development, EAC Product Development Solutions, Informatica, TopDown Consulting and TOP Step Consulting. These organisations—representing more than half of the “Best-of-the-Best”—use either the NetSuite OpenAir PSA solution or NetSuite SRP, which integrates OpenAir with NetSuite ERP for end-to-end cloud-based business management, covering project management, resource optimisation, project accounting, time-and-expense management, and billing and revenue recognition.
“SPI Research believes all project-oriented businesses should consider making the move to an integrated application suite now so they will be able to capitalise on the market as the economy continues to improve,” said Jeanne Urich, SPI Research Managing Director. “NetSuite is certainly an important element of the secret sauce brewed by more than half of the ‘Best-of-the-Best’ service organisations.”
According to SPI’s report, the “Best-of-the-Best” firms averaged net profit of 30.2 percent, compared to 9.8 percent among all others. “These extraordinary figures are a direct result of integrated business applications,” Urich said. “Integrated business applications are a catalyst for improving maturity as they provide real-time visibility to all aspects of business performance.”
The “Best-of-the-Best” firms outperformed their peers even as the professional services industry in 2013 experienced declines in all major metrics, including bill rates, utilisation and revenue per consultant, according to SPI Research. On several key metrics, SPI Research found the differential between the 13 leaders and all others to be:
- Average revenue per project: $413,000 vs. $178,000 (AUD $441,445 vs $190,264)
- Size of deal pipeline to forecast: 309% vs. 184%
- Annual revenue per employee: $236,000 vs. $150,000 (AUD $252,260 vs $160,335)
- Reference clients: 85% vs. 74%
- Projects delivered on time: 84% vs. 77%
“It is a nice honor for Informatica to be named a ‘Best-of-the-Best’ services organisation. The visibility and process automation delivered by NetSuite OpenAir played an important role in helping us achieve that distinction,” said Richard Busch, Director of Professional Services Operations at Informatica. “The automation we have achieved from end-to-end translates into greater ability to satisfy clients and helps grow our business.”
For further information, download the SPI Research white paper, NetSuite Powers the Best-of-the-Best Service Organisations.
About SPI Research
Service Performance Insight 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 organisations 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 maximise the effectiveness of solution selection, deployment and use. For more information on SPI Research, please visit www.spiresearch.com.
Today, more than 20,000 companies and subsidiaries depend on NetSuite to run complex, mission-critical business processes globally in the cloud. Since its inception in 1998, NetSuite has established itself as the leading provider of enterprise-class cloud financials/ERP suites for divisions of large enterprises and mid-sized organisations seeking to upgrade their antiquated client/server ERP systems. NetSuite excels at streamlining business operations as demonstrated in a recent Gartner study naming NetSuite as the fastest growing financial management software vendor on a global basis. NetSuite continues its success in delivering the best cloud ERP/financials suites to businesses around the world, enabling them to lower IT costs significantly while increasing productivity, as the global adoption of the cloud is accelerating.
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