SOURCE: Buswell Group

March 12, 2007 14:15 ET

Technology Professional Services Revenues Climb, Contributing Nearly a Third of Bottom Line Revenues and Significant Profit Margins According to New Industry Benchmark

MARIETTA, GA -- (MARKET WIRE) -- March 12, 2007 -- Margins from technology services operations average an eye-popping 35%, with revenues contributing an average of 33% to a company's overall earned revenues, making technology services an increasingly significant contributor to technology company profits, according to a new benchmark study on Professional Services in Technology Sectors by the Buswell Group.

The Buswell Group Professional Services benchmark compiles and reports the best practices, financial performance, compensation, staff utilization and operational metrics -- including attrition rates and usage of off-shore resources -- from the professional services operations of software and other technology companies. The benchmark is co-sponsored by PSVillage, the largest online community of technology professional services executives.

"With this kind of an impact to a company's bottom line and the ever changing business models, having real benchmarks to build and grow a successful Professional Services team is increasingly important," said Cindy Warner, senior vice president of Salesforce.com and board member of PSVillage. "We need this type of strategic, yet real-world information to help us shape and defend Professional Services management decisions."

The study includes more than 75 parameters of measurement covering margins, operations, compensation, delivery and sales. The first ever benchmark of its kind, it goes beyond documenting market trends to provide quantitative, applicable research that will help companies refine and improve professional service management operations.

"The quantitative results that I received from the benchmark enabled me to prioritize programs for improving the revenues and margins of my team," said Jon Harris, chief service officer, Ultimate Software. "We are now able to evaluate our Professional Services goals using solid externally validated numbers instead of historically generated numbers."

For more information about the Professional Services benchmark or how to participate in the next phase, see www.buswellgroup.com.

About the Buswell Group

The Buswell Group is a strategy consulting firm focused on Professional Services within technology companies. Founder Scott Fletcher brings more than 20 years of experience creating information technology solutions and business programs for Fortune 500 companies, building and managing professional services organizations in start-ups and multi-national corporations. For more information about the Buswell Group, see www.buswellgroup.com.

About PSVillage

PSVillage is the preeminent professional services executive online community. Providing a venue for professional services leaders to collaborate and share ideas, best practices, resources and more, the site hosts a moderated discussion forum, a job board and a variety of free or low-cost services including webinars, research, white papers, workshops, networking events, and benchmarks. To learn more, visit www.psvillage.com.

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