New Research Report Highlights Growing Strategic Importance of Technology Services as a Revenue and Profit Engine

 

PSVillage and Compuware Changepoint Research Validates Value of Services as Growth Driver; Provides Valuable Data to Leaders Seeking to Optimize Performance

DETROIT, May 22, 2012 (GLOBE NEWSWIRE) -- Compuware Corporation (Nasdaq:CPWR), the technology performance company, announced today the results of a sponsored benchmark research report focused on understanding the human capital, finance and operational dynamics at play in the technology services market. The 2012 PSVillage Professional Services Industry Benchmark Report is a first of its kind view into the human capital metrics of services organizations, going well beyond the traditional salary survey.

The benchmark report, which surveyed 150 service executives in the technology sector, takes a revealing look at performance metrics of embedded and pure consulting technology services organizations, with the objective of enabling technology companies and their services leaders to optimize organizational performance. In addition to a hard-copy report, the PSVillage Industry Benchmark Report is available at www.psvillage.com, complete with dynamic filters for more precise analysis of the data.

"Our goal with this survey was to go beyond the typical salary survey to examine all of the human capital metrics that drive technology services organizations," says Terry Jansen, President and Founder, PSVillage. "We surveyed a total of 19 roles across the professional services organization including management, delivery, sales and operations, capturing critical data on the number of resources in the role, target billable utilization, average base salary, billable rate per hour, years of professional services experience in the role and average percent of travel. We also included a rich set of financial metrics in the benchmark, which point to services as a strong financial performer for tech companies."

Key survey findings for technology CEOs include:

  • Almost 70 percent of companies surveyed had a healthy gross margin on services of 30 percent or more, with 35 percent of companies achieving gross margin of 40 percent or more.
     
  • 64 percent of companies surveyed achieved a healthy operating income of 15 percent or more, with 85 percent of those surveyed attaining an operating profit of 10 percent or more, pointing to the lucrative nature of the technology services business.
     
  • Technology companies surveyed are budgeting for continued growth ranging from 10 to 60 percent in the coming year.

Key survey findings of interest to services leaders include:

  • Salary data showing a surprising level of uniformity across base salaries in both product-centric technology companies and pure services consulting firms.
     
  • One quarter of companies surveyed budget less than 4 percent on direct services sales.
     
  • A large percentage of PS organizations have target billable utilization rates that are below 75 percent for delivery roles.
     
  • One third of companies surveyed still manually manage their business, leading to inefficient processes that may negatively impact expenditures and revenues.

"For the first time, this research offers real-time, real world insights into the technology services profession — an industry that is growing at rates well beyond the economic recovery and creating tens of thousands of jobs each year," says Lori Ellsworth, Senior Vice President and General Manager, Compuware Changepoint. "We are very pleased to sponsor and share this benchmark survey. This information will help services professionals working in the technology sector make better decisions, better plan for growth and optimize for greater performance within their organization. Thank you to our friends at PSVillage for spearheading this one of a kind benchmark survey. You have delivered an unprecedented wealth of data into our hands."

PSVillage

PSVillage is an industry-leading, global community of more than 2,000 technology professional services leaders representing over 750 companies. The site hosts a moderated discussion forum, the Professional Services Industry Benchmark Survey, an on-line magazine, job board, knowledge library, a spotlight of members, and a variety of high-value services, including webinars, white papers, research and networking events. To learn more, go to http://www.psvillage.com.

Compuware Changepoint

Compuware Changepoint allows technology companies to maximize professional services profitability while maintaining a focus on effective product decisions and delivery. Changepoint's integrated solution marries PSA with PPM to provide total operational visibility allowing product-centric technology companies to drive services growth with strong margins, deliver a competitive product and services mix for high ROI, and maintain top-line revenues and bottom-line profitability. Visit us at http://www.compuware.com/changepoint or tune into our blog at http://www.changepoint-blog.net

Compuware Corporation

Compuware Corporation, the technology performance company, provides software, experts and best practices to ensure technology works well and delivers value. Compuware solutions make the world's most important technologies perform at their best for leading organizations worldwide, including 46 of the top 50 Fortune 500 companies and 12 of the top 20 most visited U.S. web sites. Learn more at: http://www.compuware.com.

The Compuware logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5950

CONTACT: Press Contact

         Bob O'Brien

         Compuware Worldwide Field Marketing and PR

         603-589-4089

         bob.obrien@compuware.com

         

         For Sales and Marketing Information

         Compuware Corporation

         One Campus Martius

         Detroit, MI 48226

         800-521-9353

         http://www.compuware.com

PDF Version (15.64 KB)