It’s no news that the pandemic shifted the workforce paradigm worldwide. According to research from the Bureau of Labor Statistics conducted last year, 1 out of every 5 workers currently teleworks in the U.S. This remarkable change underscores a growing trend towards remote work, which shows no signs of slowing down. Studies suggest that remote work in the U.S. is projected to grow by 65% by 2025, reaching 36.2 million remote workers. Moreover, the remote workplace services market size is anticipated to hit $111.63 billion by 2030.
This phenomenon thrives partly due to the benefits remote work offers, such as flexibility, autonomy, and work-life balance. A recent survey suggests that 98% of workers want to work remotely at least some of the time, 32% of hybrid workers would even take a pay cut to work remotely full time.
According to Service Performance Insight (SPI) Professional Services Maturity Model, in 2021, the movement to remote service delivery peaked at around 65%, accounting for two-thirds of all billable hours. Despite some shift back to on-site delivery, SPI Research anticipates remote service delivery will remain dominant, necessitating continued evolution in tools and technologies to enhance productivity and service efficiency. This year, on-site billable hours increased from 497 to 586, yet SPI Research does not expect on-site billable work to return to over 60%. Many Professional Services Organizations (PSOs) have invested in mobility tools such as laptops, VPNs, videoconferencing, and virtualization tools to support remote work. Although remote billable hours decreased by 9%, the shift towards remote work has driven demand for project-based ERP and standalone PSA applications.
However, this rise presents significant challenges for companies. Businesses must adapt to the evolving needs of a diverse remote workforce while managing the increasing complexity of modern projects. As remote work continues to gain momentum, smarter project management solutions are becoming essential to ensure efficiency and productivity.
High Stakes at Risk
Advancements in technology have provided companies with tools to aid in managing remote work, but they still face resistance. This discontent is reflected in the stark reality that only 2.5% of businesses successfully complete their projects. In the IT sector, this issue is particularly delicate: the failure rate of projects can rise to 15%, resulting in revenue losses of up to $150 billion annually in the U.S.
A key reason for this struggle is that traditional project management tools lack mechanisms to gauge customer sentiment in real-time. This often leads to post-project evaluation rather than proactive adjustments. The inability to align project management with real-time feedback makes it challenging to customize client visibility or gather input throughout the project timeline, further complicating successful project completion.
PSA vs. Traditional Project Management Tools
As companies face these challenges, choosing the right tools becomes crucial.
Professional Services Automation (PSA) software and traditional project management tools serve different purposes. Project management software primarily focuses on planning, organizing, and tracking tasks within a specific project, offering features like task management, scheduling, and collaboration tools. It caters to project managers and team members across various industries.
PSA software, however, offers a broader scope, encompassing project management, resource allocation, time tracking, financial management, and CRM. It is designed specifically for professional services firms, such as consulting, marketing, and law firms, aiming to optimize business operations and profitability.
Traditional project management tools often lack real-time customer sentiment mechanisms and advanced financial management, making them less suitable for the dynamic needs of professional services businesses. PSA software provides comprehensive features, allowing businesses to manage ongoing, long-term projects, streamline billing and invoicing, and ensure client collaboration and engagement. This makes PSA a powerful ally for professional services firms due to its all-in-one approach, addressing the unique needs of service-centric businesses and enhancing overall efficiency and client satisfaction.
Must-have Features
To overcome the challenges of remote work, project complexity, and client sentiment alignment, businesses need robust Professional Services Automation (PSA) solutions equipped with the following must-have features:
- Comprehensive Integration: An all-in-one PSA software designed to alleviate the challenges of remote project delivery with innovative solutions in collaboration, risk and governance management, partner management, and client delivery experience.
- Efficiency and Automation: Automates repetitive tasks, workflows, and project governance processes, in turn reducing administrative overhead and manual errors, thus enhancing overall efficiency.
- Advanced Financial Management: Provides robust financial tools including budgeting, billing, expense tracking, and profitability analysis, ensuring accurate financial oversight and improved profitability.
- Enhanced Resource and Client Management: Optimizes resource allocation and utilization while integrating CRM features for managing client relationships and contracts, leading to better resource use and customer satisfaction.
- Real-Time Visibility and Scalability: Offers detailed reporting, analytics, and dashboards for real-time project insights for clients, and supports scalability to accommodate business growth and evolving project needs.
These features ensure that PSA software can effectively support the complex demands of professional services firms, driving efficiency, profitability, and client satisfaction.
About Srikrishnan Ganesan
Srikrishnan Ganesan is the co-founder and CEO of Rocketlane, a company specializing in customer onboarding platforms. He has a strong passion for customer experience (CX) and startups. His professional journey includes founding and scaling SaaS businesses over the last decade. Prior to Rocketlane, he co-founded Konotor, a mobile-first user engagement platform that was acquired by Freshworks in 2015. This acquisition turned out to be a significant growth vector for Freshworks, with the product evolving into what is now known as Freshchat. For a comprehensive understanding of Rocketlane’s offerings and impact, please visit their website https://rocketlane.com/.
