Bo Di Muccio

Bo Di Muccio, Ph.D., is vice president of research, Professional Services, for TSIA. He is also the chairperson of the TSIA Professional Services Advisory Board. Using his nearly 15 years of experience in technology industry research, analysis, and consulting, Di Muccio develops and delivers research and advisory programs that help some of the world’s leading technology companies build and optimize their professional services business.

Read more from Bo on these topics:
Professional Services | Tips for a Successful Professional Services Organization | Project Performance

Recent Posts

Services Convergence and PS: What's to Become of the "O" in PSO?

Posted by Bo Di Muccio on 1/25/17 5:00 AM

You could say that TSIA put the "O" in PSO (Professional Services Organization), because for 10 years we've been benchmarking, dissecting, building frameworks, and otherwise analyzing how tech companies organize their professional services (PS) capabilities. Most of those 10 years have been about the story of the increasing organizational maturation and sophistication of PS, that is to say, we have watched PS "grow up." We have seen it morph from a loosely conceived, poorly funded collection of smart people inventing, reinventing, and delivering technology services to customers, into something that, in the vast majority of cases, has all of the artifices and trappings of fully formed organizational entity. But, what does this mean, exactly?

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Topics: professional services, professional services organization (PSO), TSIA Organizational Convergence Series, convergence, organizational convergence

Poll Results: Organizational Models for Professional Services and the Cloud

Posted by Bo Di Muccio on 9/6/16 6:30 AM

At TSIA, we've recently received a lot of questions from our members regarding the typical organizational models tech companies are using to set up cloud or XaaS businesses alongside their traditional consumption models. To get a bit more insight on this topic, we conducted a TSIA Quick Poll where we asked members of our Professional Services community to share their experiences in this area, resulting in us receiving detailed responses from 56 companies. Though brief, the survey yielded some surprising and interesting results. In this blog post, I'd like to share some survey highlights with you.  

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Topics: x-as-a-service (XaaS), cloud, professional services, TSIA Survey, TSIA Research

[Infographic] How to Improve Your Professional Services Pricing

Posted by Bo Di Muccio on 2/9/16 7:30 AM

A common dilemma many professional services organizations face is competitively pricing their services in a way that they can also stay profitable. The unfortunate reality is that, without an effective pricing strategy in place, improper discounting practices and low list rates can lead to these organizations drastically undercharging for valuable services. Fortunately there is a solution, and the first step to improving your professional services pricing strategy is identifying the areas within your current plan that need the most improvement. Use this handy flow chart to quickly assess how you can improve your professional services pricing strategy by evaluating two critical components that could be negatively affecting your organization’s profitability: list rates and discounting. 

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Topics: pricing, professional services, services pricing, infographic

Professional Services for XaaS: Is it Different?

Posted by Bo Di Muccio on 12/16/15 6:30 AM

'Tis the season of giving, and today our gift to you is the eighth day of our annual 12 Days of Insights blog series. Enjoy!

It’s commonly thought that professional services for X-as-a-Service (XaaS) is different from professional services (PS) inside of traditional companies. But just how true is that statement? In this year’s “State of Professional Services” white paper, we concluded that 2014 had been a banner year for technology professional services organizations, with the prospects for 2015 being generally very good for the following reasons:

  • Generally improving professional services fundamentals
  • Better utilization, revenue per consultant, growth rates, and profitability
  • Better fundamentals regardless of peer group
  • Strong performance in the XaaS peer group

The last point is especially significant, considering all of the conventional wisdom about services business models for XaaS and SaaS that suggests SaaS professional services is “not supposed to make money.” Not to mention the fact that settling on the right services operating and financial models for XaaS isn’t exactly easy. However, the accumulating evidence to the contrary is pretty clear and stands in stark contrast to these assumptions, In fact, more and more professional services leaders are figuring out how to grow revenues and make money alongside a shifting product consumption model

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Topics: x-as-a-service (XaaS), professional services, 12 Days of Insights

3 Tips for a Successful Professional Services Organization: Part 3

Posted by Bo Di Muccio on 11/12/15 6:30 AM

When your customers are able to realize the value your solution can bring to their operation, they’re more inclined to stay loyal and renew their contract. (Tweet this!) The process of ensuring your customers are successfully using your technology to achieve their desired outcomes are called adoption services, and more PSOs are offering them to drive customer success with their offers. So, how can highly product-oriented technology suppliers increase their success when making the transition from Level 2 to Level 3 while also becoming good suppliers of adoption services? In this final post in my blog series about building a successful PSO, I’ll be going over a concept you can immediately start thinking about that will help a great deal: business domain expertise.

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Topics: adoption services, professional services, professional services organization (PSO), Tips for a Successful PSO

3 Tips for a Successful Professional Services Organization: Part 2

Posted by Bo Di Muccio on 9/25/15 6:30 AM

In my previous post in this three-part blog series, I talked about how the state of the industry is affecting professional services and outlined the three capabilities professional services organizations (PSOs) need to develop in order to stay ahead, starting with new offer development. In this post, I will go over the next capability on the list and why it’s so crucial to the future success of a PSO: adoption playbook. 

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Topics: adoption services, customer-supplier relationship, professional services, adoption, professional services organization (PSO), Tips for a Successful PSO

3 Tips for a Successful Professional Services Organization: Part 1

Posted by Bo Di Muccio on 8/25/15 6:30 AM

While the technology services industry is moving toward outcome-based services, most professional services organizations have to be able to adapt and transform even as they defend, protect, and improve their Level 2 capabilities. In other words, they have to walk and chew gum at the same time! In this three-part series, I’ll be detailing the three main capabilities successful PS executives are developing in order to avoid common pitfalls and capitalize on the new opportunities presented by the current state of the technology industry. 

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Topics: professional services, professional services organization (PSO), Tips for a Successful PSO

What Should You Charge for Professional Services?

Posted by Bo Di Muccio on 7/16/15 6:30 AM

Determining your pricing strategy for professional services is no easy task. While it’s important to remain competitive, you also need to be careful to not give your valuable services away for free. So, how do you determine what to set your pricing at so it holds up in the market place and positively impacts your bottom line? In this post, I’ll explain how you can use the TSIA Market Rates Study to answer some of your top questions related to pricing in professional services. 

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Topics: pricing, professional services, services pricing

Outcomes and Professional Services: Stepping Out of Your Comfort Zone

Posted by Bo Di Muccio on 6/18/15 6:30 AM

The way customers are consuming technology is rapidly changing, and more attention is being paid to how suppliers are able to provide outcomes, rather than just products and services. While this industry-wide transformation is impacting everybody, not everyone will be impacted at the same rate. Professional services organizations still receive the majority of their revenues from Level 2 offers, but there is a way to ease into Level 3 and Level 4 outcome-based models by focusing on customer adoption.

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Topics: x-as-a-service (XaaS), professional services, adoption, customer outcomes, LAER, software-as-a-service (SaaS)

How the Cloud is Affecting Professional Services

Posted by Bo Di Muccio on 4/2/15 6:30 AM

Between big data, the cloud, and changing customer demands, there is an increasing pressure on technology companies to facilitate customer outcomes. As a result, many companies have already begun moving from being more product-oriented in their relationships with customers to being more outcome-oriented, but it is an ongoing process that will only continue to evolve, resulting in big impacts on professional services organizations. Here are some key trends that TSIA has observed in early 2015.

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Topics: big data, cloud, professional services

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