Professional Services Firms Are Increasing Investments in Vertical SaaS
New research from Kantata and Salesforce examines the factors accelerating the implementation of vertical SaaS technology developed specifically for PS
IRVINE, Calif. and LONDON – September 7, 2022 – Kantata announced today that new research conducted by Forrester Consulting reveals professional services organizations (PSOs) are replacing generic, one-size-fits-all horizontal SaaS solutions and antiquated technology with vertical SaaS solutions purpose-built for their unique needs. It’s a trend that shows no signs of slowing: a significant majority (89%) of the executives and IT leaders Forrester surveyed agree that vertical SaaS is the way of the future.
The Forrester study, commissioned by Kantata and Salesforce, polled 383 global technology decision-makers for professional services firms to investigate how vertical SaaS solutions are designed to help PSOs create loyal customers, mitigate risk, and maximize profits. The data shows PSO leaders are frustrated by poor client retention rates (53%), a lack of visibility over their businesses (58%), and lower-than-expected profits (55%).
“Too many services firms still rely on technologies built for horizontal use cases, bolting products onto monolithic ERP systems or using point solutions that cannot integrate to deliver a holistic view of their businesses,” said Michael Speranza, CEO, Kantata. “We believe this research confirms services leaders are aware of these limitations and are making implementing purpose-built vertical SaaS solutions a priority this year.”
The majority (84%) of respondents recognize that their needs are unique from organizations in other industries. They also feel their organizations are limited when vendors provide generic (rather than industry-specific) tech solutions that require high customization (78%).
The study reveals forward-thinking PSOs are implementing vertical SaaS solutions to meet the unique needs of their workforces. 9 in 10 businesses that have already adopted vertical SaaS for PS told Forrester that these solutions are driving material benefits for their organization.
Likewise, of those that have not yet adopted vertical SaaS for PS, 73% say they believe their organization would greatly benefit from vertical SaaS for PS, and 64% say they plan to increase their budget for vertical Saas for PS in the future.
To learn more about why professional services decision-makers are putting their confidence and budgets behind vertical SaaS for PS, follow this link to read the full study, “Vertical SaaS For Professional Services Is Driving Material Benefits.”
Kantata will host a live webinar featuring Margo Visitacion, Forrester Vice President and Principal Analyst, on September 8 at 11am EST to review the study’s key findings and examine how vertical SaaS solutions for professional services meet the unique needs of services professionals. Follow this link to register to attend.
Kantata takes professional services automation to a new level, giving people-powered businesses the clarity, control, and confidence they need to optimize resource planning and elevate operational performance. Our purpose-built cloud software is helping over 2,000 professional services organizations in more than 100 countries focus and optimize their most important asset: their people. By leveraging the Kantata Industry Cloud for Professional Services™, professionals gain access to the information and tools they need to win more business, ensure the right people are always available at the right time, and delight clients with project delivery and outcomes.