This is an exciting time for services providers. As established by the Technology Services Industry Association (TSIA) in the ground-breaking book B4B, there is major transformation taking place: providers are evolving from simply delivering products and implementing software to delivering business outcomes. This transformation is necessary and, moreover, exciting, as it brings tremendous new opportunities. However, it is also a very challenging time.
I recall having a conversation many years back with a professional services (PS) leader based in the Netherlands about resource management. He held a strong belief that resource management, or staffing, was better and more efficient when controlled locally or within the geography (or GEO). He was very adamant that staffing managing consultants, contractors, and project managers on billable projects was more effectively accomplished if they were controlled by the professional service organization that resided within the GEO. His justifications were that the GEO was most familiar with the skill sets and the availability of the resources, prior customer engagements/projects, and which resources were better suited with being deployed to customers, as some had very good standing relations with them.
While he had some valid points and justifications, I had a very different view of resource management, which I will share with you now. It's my opinion that moving to a global or central environment for managing staffing needs on billable projects would provide more scalability, efficiency, increase overall utilization, and potentially help to reduce mean-time to delivery. To further explain, here are some thoughts on the challenges and benefits on resource management based on a local/GEO model compared to a global/centralized model.
The key to a healthy and profitable delivery organization begins with effective resource management. With Resource Management as a Service (RMaaS), your organization can put more focus on the core business of client delivery while having more predictable staff utilization and operating costs.
Every professional services and consulting organization understands the need to run its delivery operations effectively and efficiently. Yet the reality is many professional services organizations (PSOs) underachieve in keeping operating costs in line with industry standards. The most common reasons for this include: 1) lack of disciplined practices 2) poor tools and infrastructure 3) underinvestment or 4) some combination of all three.
Topics: resource management
Discover five key industry barriers to resource management success and how to overcome them, enabling your team to predictably get the right person in the right place at the right time.
Recent research makes it clear that while the professional and consulting services industry has invested in process improvements to enhance project performance, quality, and cost of delivery, the industry is actually getting worse at resource management (RM)! Given that labor expense is the single biggest cost element for professional services organizations (PSOs), these trends must be reversed for any services organization to be successful.
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