Think the PSA (professional services automation) software market is running out of momentum? Guess again. Indeed, annual PSA-related software revenues will reach about $12.88 billion by 2022, up from $6.26 billion in 2014, according to Grand View Research.
Within the IT services provider and MSP market, PSA players like Autotask and ConnectWise are well-known. Other competitors like Accelo, Atera, HarmonyPSA, Tigerpaw Software and Promys are in and around the market. And still more -- names like Appirio, ChangePoint, FinancialForce.com, NetSuite OpenAir, Projector PSA and Tenrox also are on Grand View's Radar.
Defining PSA: The Basics
For VARs and resellers that are just getting started, Grand View says PSA systems typically include:
"resource management, automated time & billing, and project management capabilities. Systems also provide consistent and powerful reports and dashboards giving management, the key information they need to make informed decisions. It also offers other benefits such as improved forecasting capability, project effectiveness, reduced revenue leakage, and improved customer satisfaction. These benefits of PSA software are anticipated to drive demand among service companies over the forecast period."
Still, PSA's appeal stretches far beyond VARs, MSPs and resellers. Technology companies -- a superset of IT service providers -- accounted for over 40% of the global revenue share in 2014 and are expected to continue their dominance in terms of market size by 2022, Grand View said. Not by coincidence, ConnectWise CEO Arnie Bellini has successfully positioned the company as a platform provider for call technology companies.
Other key adopters include consulting firms, legal firms, and marketing and communication industry. Over the past decade, players like Autotask considered moving into those verticals. But CEO Mark Cattini instead focused on global expansion, localization and diversification into RMM (remote monitoring and management) and file sync and sharing.
ConnectWise, in stark contrast, was born from an IT service provider and never really wavered from that heritage. The company was a "first mover" beyond the PSA market into RMM, quoting and sales proposals and more.
Regional PSA Trends
Hardly surprising, North America and Europe continue to dominate the PSA scene. Autotask made the early European push, and ConnectWise has been countering more recently -- led by co-founder David Bellini's shift to that region. Hint, hint: Keep an eye on the IT Nation conference...
To my surprise, Asia Pacific market represented nearly 18% of PSA's overall revenue in 2014 and is expected to grow at a CAGR of over 10 percent from 2015 to 2016, according to Grand View. Still, I suspect that figure likely includes Australia, which was an early adopter of RMM and then extended into PSA, ChannelE2E believes.
Among Grand View's industry conclusions: "Partnerships and strategic mergers and acquisitions are anticipated to be the most effective ways for industry players to gain quick access to emerging markets and enhance technological capabilities."
We tend to agree.