Is your company exploring the potential of professional service automation? From managing resources and tracking billables to automating invoicing and managing client interactions, it’s easy to see why PSA software is king in the professional services industry.
But how do you choose the right professional service automation software with so many options on the market?
This guide will cover all the key factors you should consider when evaluating and selecting PSA software to ensure you invest in the right provider.
What is Professional Service Automation Software?
Professional service automation tools help manage clients throughout the project lifecycle. From closing deals and creating client contracts to delivering billables and tracking hours, PSA software is a centralized platform for entire workflows.
Rather than having separate software for accounting, project management, collaboration, and resource management, PSA tools provide predictability, streamlined workflows, and high levels of automation.
Here are the most common capabilities you can get from PSA software:
- Accounting
- Billing & Invoicing
- Calendar management
- Client access through a dedicated portal)
- Team Collaboration
- Document Management
- Project Management
- Proposal Generation
- Resource Management
- Software Integrations (e.g., to a CRM)
- Time & Expense Tracking
The key benefit of PSA software is customization. You can tailor features to suit your existing processes, or create new streamlined workflows that help you meet your strategic goals.
How PSA Software Fits into Your Organization’s Technology Roadmap
PSA software is a highly effective tool for managing projects, whereas your technology roadmap is your company’s documented path to reach its strategic goals.
PSA software implementation can be a strategic initiative to add to your tech roadmap for many reasons.
Real-time Reporting
It’s difficult for managers to make real-time decisions based on up-to-date information, making it challenging to plan the right initiatives for your 1-3-year IT roadmap.
PSA software provides real-time reporting analytics, providing comprehensive data on client satisfaction, productivity, ROI, and more. Around 80% of companies report revenue uplift due to real-time data analytics, so this is an important opportunity for growth.
The information can also inform your technology roadmap and show what improvements will have the most impact.
Reduced Costs
Professional services organizations see an average annual revenue growth of 8.5% when using PSA software. By standardizing workflows and automating administrative tasks, your business can reduce costs and boost the IT budget for new roadmap initiatives.
Professional service automation software has also been shown to boost productivity, meaning your team will get more projects completed faster.
Better Team Collaboration
Poor team communication is a common concern in the professional services industry. In fact, around 39% of companies report a significant lack of team collaboration.
PSA software provides a collaborative platform for discussing projects, sharing files, and keeping up to date with the latest developments.
Not only does this improve output and the standard of work produced, but it allows key stakeholders to give real insights into pain points and what IT initiatives could have the most impact moving forward.
How To Choose The Best Professional Service Automation Software
A quick Google search will show you dozens of options for PSA software on the market, and not all are created equal. Here’s a quick guide on choosing the right PSA software for your organization.
Want to save time and get fast, reliable expert advice on the right PSA software for your business?
Define Your Requirements
What do you want to achieve with PSA software? Having a list of priorities is important and will help you narrow your search considerably. Take into account:
- Business type, industry requirements, and team size
- Must-have functionalities and nice-to-have capabilities
- Integration capabilities
- Budget and pricing models
Don’t forget to think about future growth as well as your current needs. If you plan on expanding your team or moving into new markets, your PSA software needs to scale with you.
Set Evaluation Criteria
The easiest way to contrast and compare potential vendors is to set evaluation criteria. You can then score each software and create a shortlist based on outcomes. Here are a few examples of evaluation criteria you could use:
- Must-have and nice-to-have features
- Implementation timeline
- Level of customer support
- Customization options and flexibility
- Integration capabilities
- Pricing and fees
Research Your Options
Now you have all your priorities in order, you can begin researching potential vendors. There are three different approaches:
- Hardest: Google search PSA software and spend time searching for different vendors.
- Better: Use a request for proposal (RFP) to get potential providers to send you tailored bids.
- Best: Work with a software consultant who can advise you on the best PSA software based on your requirements and their extensive experience with different vendors.
At StackPlan, we combine options two and three. Our clients work with software consultants to create goal-driven tech roadmaps and effective RFPs. Then, a vetted software implementation specialist helps choose and implement the best software based on the results.
Shortlist Vendors
Use your scoring matrix to evaluate potential vendors and create a shortlist of the best options. You can then request tailored quotes and demos from each to determine which software fits your needs best.
This is also the time to verify contract terms and check all the integrations you need work seamlessly. If you’re working with our tech advisors and software consultants, they’ll take care of this step for you.
Choose Your Professional Service Automation Software
We always recommend test-driving two or three finalists to get a feel for the usability and capabilities of the different options. If you face challenges or have questions, you’ll still have time to get them clarified by potential vendors.
Once you and your team have chosen the best PSA software, you can notify the vendor and begin the implementation process! You’ll need manager buy-in and support from key stakeholders to ensure the implementation process goes smoothly.
Get An Inside Look At The Best PSA Software
The right professional service automation software will take your company to the next level. You’ll be able to streamline resource management, boost team collaboration, automate billing, track billables, and monitor client satisfaction, all from one platform.
We’ve seen the drastic transformation PSA software can have on professional services businesses, and we’re here to help you gain that competitive advantage.
