Top 20 Professional Services Businesses: 2017 EBITDA Margins

The typical IT service provider (with a blend of MSP and VAR revenue) generates about 8 percent to 9 percent EBITDA profit margin, according to Service Leadership Inc. Top MSPs push toward 20 percent EBITDA profit margin and beyond. So how do those figures compare to the overall professional services market — involving consulting firms and service providers across all industries?

The latest Service Performance Insight (SPI) readership, based on a survey of 416 organizations, reveals some interesting data points (see chart below). Chief among them: Professional services firms (consulting companies in multiple verticals) can march toward 20 percent EBITDA profit margins, SPI found. That’s pretty darn impressive. Plus, professional services firms can grow at a healthy 20 percent per year — though managing project growth (vs. more predictable recurring revenues) can be tricky. Here are more stats from SPI’s 2017 report:

Top 20 Most Profitable Professional Services Firms 2017 (Based On EBITDA Profit Margin)

The top performers revealed in SPI’s 2017 benchmark study are listed below. ChannelE2E has sorted them alphabetically, and EBITDA margins for each company remain confidential.

1. Advoco is an Enterprise Asset Management (EAM) consulting services company, focused on Infor EAM solutions.

2. AHEAD is a consulting company that helps enterprises transform how and where they run applications and infrastructure. Court Square Capital Partners, a private equity firm, acquired AHEAD in 2015.

3. Aspect specializes in contact center, self-service and workforce solutions.

4. Centrify specializes in Privileged Identity Management and Identity-as-a-Service across across hybrid, cloud, mobile and on-premises IT environments.

5. CirrusOne is a consulting firm that delivers CPQ (configure, price, quote), CLM (contract lifecycle management), billing and revenue-centric solutions.

6. Collaborative Solutions is a global finance and HR transformation consultancy focused on cloud solutions — particularly Workday offerings.

7. Box continues to transform file sharing from a SaaS app into a cloud platform. The effort includes professional services and a growing enterprise engagement strategy with IBM.

8. e4 Services is a healthcare information technology consulting firm specializing in clinical, hospital information management and revenue cycle services.

9. Fruition Partners, a DXC Technology company (formerly CSC), is a global technology-enabled services firm focused on elevating service management to the cloud. Key partners include ServiceNow.

10. Integrated Project Management Company, Inc. (IPM) is a project management consulting firm.

Continue to Page 2 for companies ranked 11-20.

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