What is Resource Management Software?

Resource management software helps professional services organizations control how their teams’ working hours are allocated to projects. Traditionally, resource management software has included spreadsheets and homegrown applications, as well as commercial off-the-shelf tools. Resource management software must include features that enable planning, scheduling, and allocating resources to specific projects and tasks. It should also support skills tracking, forecasting capabilities, and utilization reporting. According to the Resource Management Institute (RMI), 75% of professional services businesses still use inefficient spreadsheets to forecast their resources. While spreadsheets or homegrown applications can be used as a starting point for resource management, a variety of off-the-shelf solutions exist that help organizations scale more efficiently without the administrative burden of an in-house tool.

Resource management software and project management software both focus on project planning and execution, but project management software is primarily used to track and manage individual tasks required to complete a project. Resource management software is more strategic, allowing for the inclusion of business objectives as well as specific project objectives. It also accounts for time—one of the most valuable resources for any services-based business.

Human resources (HR) software also shares similarities with resource management software in that it focuses on people. But HR software is less about managing talent and more about record-keeping and ensuring compliance with labor laws. HR software is used to streamline and automate critical processes such as recruitment, onboarding, and time tracking, and to maintain employee data records. Resource management software is designed to help companies make the most of those human resources, whether internal or external, by optimizing utilization and billable hours.

For services-based organizations, resource management software must include a few key features that support efficiency and effectiveness, enabling users to optimize resources and deliver the best possible outcomes for every project.

• Resource Allocation: Distributing resources efficiently is critical to PS success, in terms of both profitability and team satisfaction. Centralized resource allocation software enables you to see project changes in real time and allocate the best available resource for every need, keeping your talent happy and projects on track.
• Scheduling and Planning: Smart scheduling requires the ability to manage multiple timelines and gauge availability across teams and projects. Scheduling features should provide visibility across available staff and contractors and allow for easy adjustment when potential issues arise or project needs change.
• Resource Forecasting: An accurate estimate of the resources required to complete a project or objective is essential for managing project timing, demands, and profitability—and it starts with total visibility. Look for a solution with a robust resource forecasting feature that uses real-time data, so you can be ready for next week, next month, and next year.
• Upskilling Resources: For services-based businesses, people are your most important resource. Make the most of every available resource by identifying growing demand for skills and opportunities for your team to develop their capabilities. Close skills gaps, improve project outcomes, and empower employees to advance their careers with skills management software.
• Managing External Workforce: To make sure you have the best team for every project, you need visibility across your entire talent network—including both internal and external resources. This should include the ability to add external roles, skills, calendars, and cost rates, and work seamlessly with external partners, so you can make better-informed staffing decisions and collaborate with confidence.
• Reporting & Analytics: You can’t improve what you don’t measure. Resource management software should include powerful reporting and analytics capabilities that deliver deep insights into resource utilization and efficiency, powering ongoing improvement.
• Integration with Other Tools: Modern resource management software needs to integrate seamlessly with the software and systems your teams use every day, including project management, finance, and collaboration tools. Empower your teams and deliver real-time data for informed decisions.

Services-based businesses can choose from three primary types of resource management software.

Project-based resource management software

This type of software is designed for project managers to oversee individual projects. Features enable managers to perform tasks such as forecasting, scheduling, allocating, and tracking available resources on a per-project basis, for better planning and execution. While this approach supports outcome optimization for individual projects, lack of visibility across multiple projects and teams can stand in the way of higher-level strategic resource management.

Enterprise resource management (ERM) software

A broader solution for managing resources across an entire organization. An ERM solution allows larger organizations to effectively allocate and track resources across multiple projects and large teams, for more strategic planning and execution. Modern solutions should integrate seamlessly with other systems and tools to provide real-time visibility and insights, and scale easily to handle the complexity that comes with expanding departments, teams, and talent networks.

Cloud-based vs. on-premise solutions

Traditional on-premise resource management software puts users in control of data security and system configuration. But in today’s fast-paced, digital world, many organizations are moving to cloud-based solutions, which offer increased agility, scalability, and flexibility, without compromising security. Cloud-based systems are easier to integrate with other tools and systems to ensure up-to-date data and a centralized view across all projects with the ability to drill down into specific teams, tasks, and timelines.

Resource management is essential for businesses across industries, and resource management software is used by companies of all sizes to manage teams of employees, subcontractors, vendors, and partners.

Resource management software like Kantata, which focuses on intangible rather than tangible resources, serves a variety of industries. It can be used as IT services resource management software, agency resource management software, IT and management consulting resource management software, or to manage an embedded professional services teams within a larger organization—any kind of business or team that provides people-powered services rather than tangible goods can benefit from Kantata’s end-to-end visibility paired with business unit control.

Consulting firms use resource management software to gain visibility into projects across the organization so they can increase productivity and identify skills gaps and development opportunities. Marketing, branding, and advertising agencies are looking for a streamlined, purposeful way to manage complex operational needs while staying ahead of changing market demands and customer expectations. For IT service providers, resource management software supports the need to dynamically distribute talent where it’s most needed, making the most of teams and delivering more for clients.

Once adopted, a number of different roles within these companies will likely use resource management software. Managers use it for project planning, smarter staffing, and to adjust resource allocation on the fly as needs change across projects and teams. CFOs and financial teams can use resource management software to track time and expenses, compare resource allocation estimates to actuals, and monitor utilization rates to ensure project profitability. For consultants and team members doing the work, a centralized resource management system makes it easy to manage tasks and timelines, and collaborate with team members via a single interface, ensuring nothing slips through the cracks.

Traditional resource management tools like spreadsheets and homegrown applications create inefficiencies, from manual updates and version control issues to costly maintenance. According to research by RMI, the biggest barriers to effective resource forecasting include inaccurate demand data (76%), delayed insights (63%), and lack of automation (59%). Modern resource management software eliminates these challenges by providing real-time visibility, agility, and control—ensuring organizations can forecast with confidence and optimize resources effectively.

Organizations may be hesitant to adopt a purpose-built cloud-based resource management solution like Kantata because it’s easier to maintain the status quo. However, it’s important to weigh the business benefits of such a move. Service delivery teams need resource management software to achieve the best version of your business. Plus, people are your most valuable resource—and the first place to look for business improvement is in managing and deploying them more strategically.

Modern resource management software delivers unparalleled reporting capabilities for in-the-moment insights that power better, more strategic decisions at every level. End-to-end visibility prevents common resource management challenges including overallocation, and lets you get ahead of scheduling conflicts before they impact project outcomes. Effective RM solutions will also give visibility into bench time and insights to reduce that downtime with more effective forecasting and allocation.

By automating key processes, a purpose-built PS solution reduces the time management teams spend on administrative tasks while also reducing errors and inaccuracies that can eat into profits and impact project outcomes. Get a better handle on your skills inventory and usage, improve relations with full-time and contract resources, and easily scale as your needs change.

Deciding which resource management solution is right for your business can be confusing. Start by identifying the primary problem you’re trying to solve, such as lack of visibility, forecasting difficulties, or resource allocation challenges. Flag the need-to-have features that will help you solve this problem (for example, skills tracking, AI-powered resource recommendations, and full visibility into which resources are utilized and when) and the nice-to-have features that will make life easier for your managers and teams.

Next, evaluate ROI by researching implementation time and time to value for the solutions you’re considering. Watch product videos for the solutions that meet your requirements and deliver the fastest ROI. Finally, select the software that seems like the best fit and request a personalized demo.

Why do professional services organizations need vertical-specific resource management solutions? To better serve clients, for better visibility into business performance, and to better serve employees. This means making the most of their skills, minimizing bench time, and preventing burnout and bottlenecks. Let’s compare the top resource management software solutions for the professional services industry.

Float provides real-time visibility into resource allocation across projects, with the ability to make adjustments as needed. Float includes intuitive planning, scheduling, and time tracking features. However, it’s built for short-term planning—which organizations looking for more than simple scheduling will likely outgrow it quickly.

Resource Management by SmartSheet is an add-on resource management tool for SmartSheet users. Originally launched as 10,000 feet, SmartSheet acquired this solution in 2019 to round out their portfolio. Resource Management enables workload balancing and resource allocation for better decision-making. It integrates with other Smartsheet workflows but may not offer the strategic benefits of a purpose-built solution.

Resource Guru is simple resource management software that supports scheduling, planning, and time tracking. While simplicity makes it easy to use, it lacks some of the robust capabilities modern PS organizations require, such as project management, business intelligence, and collaboration features. It’s not scalable for enterprises, and an inability to differentiate between cost rates and bill rates makes pulling profit margins tricky.

HubPlanner supports complex resource and project management needs at scale, with visual resource allocation plus time tracking that’s linked to task assignment to maximize productivity. Vacation and leave management functions let you plan ahead and avoid availability gaps. It lacks flexibility though, such as the ability to edit custom fields, and requires an API for Microsoft Teams integration.

ClickTime is time tracking and resource management software, providing detailed insights into project costs, profitability, and staff utilization. Features are designed for project-based time and expense tracking to improve productivity, and project budgeting for enhanced margins. For larger organizations with complex needs, the interface and features might be a bit basic and limited customization could be an issue.

Forecast App features AI-powered project management, resource planning, time tracking, and financial management software. Automation, real-time insights, and customization are key benefits. But there’s a relatively steep learning curve for new users, and the app only provides shallow integration with third-party tools.

Kantata Professional Services Cloud is a purpose-built professional services automation (PSA) solution, which includes robust resource management capabilities that connect seamlessly to project execution and financials. With Kantata, resource management isn’t a standalone tool; it’s the launchpad on a strategic and scalable journey to PSA transformation. Only Kantata has the technology to truly meet the needs of the modern PS organization—today, tomorrow, and beyond.

Agile, dynamic, and reliable resource management software is essential to PS success today. That means adopting a purpose-built solution that’s AI-powered, cloud-based, and enables dynamic resource optimization at speed for the global services market. Vertical solutions provide the superior performance and insights required to manage the remote workforce and deliver value throughout the professional services project lifecycle.

With a modern resource management solution that’s designed for services-based businesses, you can make sure you have the right resources on the right project work at the right time—across the entire organization, at any scale. Real-time insight allows for optimal utilization, making the most of every resource while maximizing the profitability of every project. Better project outcomes increase client satisfaction, and better management of your entire talent network enhances team satisfaction, driving better outcomes for all. It’s a win-win-win.

Kantata resource management software is one piece of a powerful, end-to-end management solution that covers the entire services delivery lifecycle. Surfacing AI-powered insights before you know to look for them, Kantata offers truly dynamic resource optimization that lets you see the full picture, respond to project needs in real time, and adjust on the fly.

If your business is struggling to allocate resources efficiently and effectively, or if you’re still using spreadsheets to manage resources across teams, departments, and projects, Kantata’s next-gen PSA can transform your approach and deliver tangible results. Tap into a full suite of purpose-built tools that let you work smarter—from accurate forecasting and planning, to allocation and scheduling, skills inventorying, and talent network management, all in one place. Stay one step ahead of ever-changing client expectations, maintain a healthy workforce, and future-proof your business.