Types of Professional Services Automation (PSA) Software

PSA systems may vary in functionality, scope, and implementation. With that said, there are three main categories of professional services automation (PSA) solutions: all-in-one (AIO) PSA, industry-specific PSA, and best-of-breed PSA.

All-in-one professional services automation

As the name suggests, all-in-one or AIO professional services automation software provides users with a comprehensive feature set and the capabilities required to effectively manage professional services firms and organizations. An AIO PSA solution allows for proper project accounting, portfolio and project management, sales and marketing, and sometimes even customer relationship management (CRM), and payroll management to keep track of financial data.

All the features and capabilities mentioned above are provided as a fully integrated system or as a business process suite of multiple software solutions that any service business or professional services company may acquire separately if they choose to do so.

Industry-specific professional services automation

The majority of PSA systems on the market can be utilized by any professional services firm across different sectors and industries. However, there are service providers and vendors that provide a more specialized PSA solution in one or perhaps a small number of niche sectors. For example, an agency management solution serves the needs of small PR firms, marketing and advertising agencies, marketing teams and departments, as well as large PR and marketing companies.

Now, a solution like agency management software is not just equipped with robust PSA features and capabilities. This type of software, while fully capable of serving as professional service delivery automation software, also has the ability to provide specialized functionality and tools tailored for marketing, including content management and online proofing.

Best-of-breed professional services automation

This category of PSA systems is mostly focused on portfolio and project management, as well as other closely related service operations and features like resource management. This type of PSA software is beneficial for executing projects and supporting a project's lifecycle. Although best-of-breed PSA platforms may provide functionality for customer relationship management (CRM), marketing and billing, such features are often limited, and professional services firms will require integration with third-party systems to handle their more advanced needs.

Service providers and vendors of this type of PSA solution generally work with one or more solution providers in order to deliver a more robust and seamless integration with their project accounting software and CRM tools.

Cloud-based vs. on-premise PSA software

Professional services automation software may also be categorized based on how it is deployed or implemented within an organization, like professional services firms. There are two main deployment methods to choose from: on-premise and cloud- or web-based deployment. Both software deployment strategies have their own advantages and disadvantages, which may or may not apply to your specific situation.

On-premise deployment refers to software that is deployed on the local servers of a company. This means the software is installed on a local network or in local terminals managed and maintained by the organization’s in-house team. A premise-based PSA solution offers more control and customization, but many of them are not free, come with a hefty upfront cost, and may require additional licensing fees and hardware.

On the other hand, cloud-based deployment refers to software solutions and tools delivered as a service over the internet. In recent years, web-based software solutions, including PSA systems, have grown in popularity among small businesses, independent contractors, and professional services firms because of the cost-efficiency and service delivery they provide.

The service follows a subscription-based model where businesses have the choice among two or more pricing plans to be paid on a monthly or annual basis. One of the main advantages of cloud-based PSA software is that users will only be required to pay for services and features they actually use since pricing plans are often tailored to fit the varying needs of professional services firms and agencies. Many solutions also offer a free trial for first-time users.

How to Choose Professional Services Automation (PSA) Software

Choosing the right PSA solution involves research and a proper evaluation of the different products available on the market. When you’re making a few comparisons of various PSA systems, there are a number of trends you need to consider.

Resource utilization based on employee interest

Employee turnover cost is a crucial factor when you’re trying to improve your service operations’ profit margins. However, as beneficial as it is to your business, it can be difficult to quantify. Most professional services businesses today are more interested in investing in a PSA solution that lets them take the employee or employees’ level of interest into account when assigning them new project lifecycles. This can help ensure proper motivation.

Interest-based resource utilization is a good strategy that enables you to match the right employee, based on their interests, with executing a project. A good professional services automation software solution lets you keep track of utilization rates and personnel interests in real time, so you will be able to assign the best performers in your organization to deliver projects on time.

Customer collaboration capabilities

Well-established professional services firms understand the importance of collaboration to deliver projects on time. They also appreciate the significance of utilizing PSA systems when working collaboratively with clients. Providing clients with direct access to information such as vendor schedules, for instance, will allow them to view project timelines, invoices, and other important details in real time.

With the information, clients can then review the financial data from the time and expense reports and approve invoices in real time. A PSA solution with this kind of capability can help with executing projects and resource management.

Integrated project accounting and management

Professional services automation (PSA) software with integrated project accounting and management features help unify, otherwise disparate systems. This can help enhance time management and minimize errors. When you integrate project management and accounting solutions to create a unified platform, you’re effectively removing uninformed decisions from your day-to-day services operations, while improving the management of your financial data.

Having a single, unified PSA solution enables management, as well as stakeholders and decision-makers, to get a better view of the project in real time. This should have a positive effect on the company’s ability to deliver projects on time.

Benefits of Professional Services Automation (PSA) Software

Professional services automation software is not only capable of providing you with all the tools you need to effectively track and measure key performance indicators (KPIs) for your organization, it is also equipped with business intelligence (BI) technology. This will help you gather valuable insights so you can execute resource planning more efficiently and have higher resource utilization rates. This should also help increase your services operations’ profitability and minimize operational costs.

Another benefit you might experience from using a PSA solution is improved predictability. Advanced business intelligence will not only provide analytics and reporting capabilities; it can also help your team predict possible project lifecycle timings.

When using PSA systems, you may experience diminishing administrative tasks. You have to keep in mind that professional services automation (PSA) software is designed to identify work-intensive, time-consuming, and error-prone processes, while also reducing unnecessary data entry points. The solution works by automating key processes like project scheduling and planning, workflow management, and time and expense tracking.

Before long, you should be able to notice just how much time you’re actually saving when you or your team are not spending most of your day running unnecessary data entries, going through project accounting, making reports, and doing other administrative tasks.

Common Features of Professional Services Automation (PSA) Software