Professional Services Automation Software

What is Professional Services Automation Software?

Companies that offer the services of highly educated, trained and experienced experts require Professional Services Automation (PSA) software to manage efficiency, productivity and profitability. PSA systems provide customer-facing and back-office activities to oversee professional resources and track project costs and revenues. Client-project level activities require software with a specific focus to handle the unique demands of accountants, consultants, dentists and doctors, engineers, lawyers, information technology (IT) managers and other professionals.

Understanding Professional Services Automation Software

PSA software offers an understanding of individual projects and comprehensive portfolio business processes. It provides access to essential information by all segments of a professional services company with clarity and insight. From accounting to sales and marketing, employees in all departments can benefit from knowing the status of business processes in real time. The precision, accuracy and timeliness of PSA software provide a valuable resource for everyone.

Types of PSA Software

Different developers apply variations in function and scope, recognizing the adaptations that buyers may prefer. Three types dominate the industry and provide approaches that differ slightly.

• All-in-One Software: One piece of PSA software can perform all the management tasks that a professional services company requires. Capable of managing projects and portfolios, it can handle accounting, sales, marketing and perhaps human resources and payroll as well. Buyers may choose to use it as an integrated system or to purchase a suite of solutions separately.

• Industry-specific Software: Some developers specialize in one niche area and offer a product that any professional services industry may use. Features within the industry-specific software packages may provide the functionality that companies outside the niche can use equally well.

• Best-of-Breed: A focus on managing projects, portfolios and resources management in best-of-breed software may limit other features such as CRM, billing and marketing. Companies may need to secure partners who can integrate PSA features with existing software.

PSA Software Benefits

PSA software offers users the benefits that promote efficiency, communication and economy.

• Collaboration with Customers: Companies have easy access to customers through features that manage projects, contact details and relationships.
• Resource Allocation: PSA software can assign human resources and equipment across projects where needed to achieve the most efficient distribution of resources.
• Cost Control: Tracking the costs, time and progress of projects from initiation to completion can reduce the expense of activity lifecycles.

PSA Software Features

The array of PSA product features can challenge buyers to choose the most robust and appropriate package on the market. A determination of which features come with the software or require integration and customization may help with purchasing decisions.

1. Accounting Functionality: Most accounting software handles high-level financial data but does not address it at the project or portfolio level. PSA software tracks costs and profitability by folio, and some track them by project too.

2. Collaboration: Team members can share content, knowledge and status of complex projects with workspaces that accommodate external users and freelancers.

3. Human Resources and Payroll: Central to the efficient functioning of a professional service company, the management of employee skills, time and pay becomes essential. Companies can use the human resources and payroll features to pay professionals fairly and according to skill and experience level.

4. Management by Portfolio: The structures of professional services companies tend to make them suitable for specific industries where they may provide a range of functions. Many choose to serve consultants in IT, marketing or business. For each market sector, services may include companion areas of expertise such as software development and IT technical support. PSA software can provide tracking for projects that occur one time or on a continuing basis, requiring different levels of support. Portfolio features can manage and track all projects, sharing key performance indicators, knowledge and resources.

5. Management by Project: Professional services companies offer projects as the core of the business model, delivering expertise through established delivery systems. Each project requires allocation and tracking of resources, scheduling of deliverables and deadlines. PSA software can manage all aspects either individually or by group.

6. Managing Resources: The operational costs of a professional service company center around human and material resources. PSA software lets users keep track of the availability of resources to avoid bottlenecks and unanticipated delays. The flexibility to plan and use resources efficiently as projects change makes resource utilization a key factor.

7. Sales and Marketing: Most PSA products that vendors offer contain effective sales and marketing features, focusing on customer relations and communications. Some software features help users establish guidelines for service discounts. Further, some offer lead management as an advanced feature that can integrate with existing CRM and sales software.

8. Risk Management: Planning can mitigate risks that can deter the completion of projects. The complexity of projects and portfolios requires an ability to plan for needs and the resources to meet them. While some risks may result from unpredictable circumstances, the planning features in PSA software can set up contingency plans that thwart negative impacts.

Assessing a Need for Professional Services Automation Software

The size and complexity of a company’s business activity can help determine purchasing decisions for PSA software. When remaining aware of the project, resource, task and invoicing status becomes too difficult, company executives may prefer to get a comprehensive view instead. Available in packages that serve companies of various sizes, software that allows scaling may provide the most advantageous use of budgeted funds. PSA software that offers an excessive number of features may overwhelm a small business. However, small businesses may require a range of features to accommodate expansion. A realistic assessment of a company’s needs can influence an investment in new software.

Looking at Target Industries

PSA software serves the entire range of market sectors and offers designs that satisfy the scope of demands by market sectors. Companies that provide experts as IT consultants, lawyers, architects, communicators, marketers and business advisers can find a package that adapts to specific needs. Careful evaluation that matches provided services with software features can help companies obtain the most efficient product at the most economical price.

PSA Software Pricing

Prices for PSA software vary from free programs to packages that cost several hundred dollars. While elegant features may seem attractive at first, they may become a burden on people who must use them to accomplish routine tasks. Features come at a price, and each one needs a thorough review to justify its inclusion in a software package. Variables that can aid decision-making may include the amount of an investment, the industries that a company serves, company size and other factors.

Setting a Price Range

Compliance with budget restraints can guide a decision to buy PSA software. Establishing a line for the minimum and maximum amount a company may choose to spend can prevent paying too much or too little. Software that seems too inexpensive may fail to perform the necessary functions. Likewise, one that costs too much may stress the budget and the employees who use it. Options that company decision-makers can use to defray investment costs include asking vendors for alternative solutions. Various subscription plans may prevent the need for an outright investment. Some suppliers may offer payment plans that help limit demands on a company’s budget.