The cloud and subscription-based technology has really changed things for the tech industry—particularly professional services. Embedded professional services organizations (PSO) are having to reinvent how they engage with customers throughout the lifecycle.
What once was a straightforward product sell and product-attach services model is forcing PSOs to morph and mature service level offerings. According to Technology Services Industry Association (TSIA) “The State of Professional Services 2016,” professional services revenue only brought in 93 to 94 % of what it did last year. And that’s only going to continue to decline if the business model doesn’t shift.
In order to mature the professional services model, PSOs have to mature what they offer. That requires a jump from Level 2 to Level 3 and Level 4 services. TSIA defines these levels as:
- Level 1: Sells products
- Level 2: Sells products plus classic product-attach services to implement and support those products
- Level 3: Sells product, product-attach services, plus services designed to help customer operate and optimize the usage of technology solutions
- Level 4: Sells business outcomes to customers that are enabled by technology capabilities1
Find out how to stay competitive and up-to-speed with today’s business in Professional Services: Hopscotching from Level 2 to Level 3 and Beyond.
Citation: 1. TSIA "The State of Professional Services 2016"