- Cloud deployments dominate service-centric ERP sales, with less than 5% of Gartner clients interested in acquiring or maintaining premises-based systems.
- According to Gartner, the global ERP market will grow from an estimated $35.5B in 2021 to $50.9B in 2024, attaining a Compound Annual Growth Rate (CAGR) of 12.7%.
- Financial Management Solutions (FMS)-based ERP systems sales are predicted to grow from $13.15B in 2021 to $18.43B in 2024, attaining a CAGR of 11.94% (Gartner).
- Covid-19 forced a 4.6% reduction in global enterprise software spending this year, although projected worldwide enterprise software spending is predicted to rebound well, reaching $211B in 2021, increasing to $321B in 2024, achieving a 15% CAGR (Gartner).
CFOs Need Real-Time Revenue, Costs & Operations Data
Knowing how much of a revenue forecast is real and how each deal in the pipeline will affect financials is what professional services Chief Financial Officers (CFOs) worry most about today. Protecting professional services margins takes a multifaceted view of financial performance, starting with cash flow analysis, resource allocations, and improvements to the contract-to-revenue process.
Further steps to protect profitability need to include the ability to customize spending guardrails for projects, controlling spend in procurement, order & inventory management, and smoother sales-to-services handoffs. CFOs also want to know how much it costs to deliver an excellent customer experience and if it is worth it or not. Ultimately, they want real-time visibility across all professional services, financial accounting, and analytics systems to identify real-time risks to avert cost and margin drains on profitability.
Which Market Needs Defining Services-Centric ERP’s Future
The cloud has solidly won the platform war for services-centric ERP and professional services automation (PSA) ERP deployments across organizations of all sizes today. 95% of Gartner clients are steering conversations to cloud-based solutions over on-premise. That’s being accelerated by professional services organizations’ need to become virtual as quickly as possible.
Professional services businesses’ lifeblood keeps customer relationships strong with open communication, collaboration, and a true commitment to delivering valuable customer experiences. Cloud platforms, including Salesforces’ are proving effective in keeping customer relationships alive and giving professional services companies the platform they need to serve them.