| At a glance IT companies face unhappy tradeoffs among profits, revenues, customer satisfaction, and talent retention. The root cause The solution and its benefits |
The challenges
The IT services business is ultra-competitive. The presence of large, medium, and boutique-type companies creates intense competition.
The demands of customers undergoing digital transformation amid contracting IT budgets put more pressure on project margins.
At the same time, talented knowledge workers who are the core of the delivery of IT services are seeking work-life balance and more fulfilling work.
The challenge of simultaneously improving productivity, customer satisfaction, and talent retention is forcing IT companies to take a very close look at their own operations.
They are looking at PSA software for IT companies to gain finer control on their operations.
The Islands of digitization
What IT services companies have achieved in past decades is phenomenal. The industry has innovated and has come up with a variety of business models for scaling up to meet customer demands.
The industry had to make use of the available enterprise software like ERP to manage the back-end operations i.e. finance and accounting. ERP, originally designed for the manufacturing industry producing standard products, wasn’t suitable to meet the unique needs of the IT services project deliveries.
This situation remains the same despite incremental developments and add-ons to ERP software. At the front end CRM software packages came up to meet the industry needs.
HRMS software solutions were developed. For managing projects, their real operating core, IT companies have been using some type or other of project management software.
Today, most IT companies are stuck with the above legacy of islands of digitization serving their customers who are undertaking end-to-end digital transformation.
Piecemeal solutions will no longer do
The legacy islands of data make managers spend disproportionately large time gathering data rather than analyzing, making sense of it, collaborating, and acting on it.
The managers struggle to find the right people at the right time for quality deliverables in absence of real-time and reliable information. They struggle to deliver their projects within their cost budgets. They struggle to make error-free invoices.
The piecemeal solutions of the past can’t meet the present and future challenges.
Fortunately, an elegant solution that overcomes the above pitfalls without junking existing investments in software is available.
Enter Kytes PSA
Kytes Professional Service Automation (PSA) software is an enterprise-grade software platform that digitizes and automates end-to-end opportunity-to-cash cycles per project and enterprise-level aggregations. Built using low-code / no-code technology it is easy to maintain, upgrade, and keep secure.
Kytes PSA automates processes needed for opportunity management, project estimation, project and delivery management, resource management, timesheets, and leave-management, billing, and project financials.
The PSA captures data at the time and place it is generated and presents it at the point it is needed for processing, collaborating, and decision-making.
All managerial decisions are based on the ‘Single Version Of The Truth’ valid for the enterprise.
The PSA protects and leverages your investments in ERP, CRM, HRMS, etc since it integrates them into end-to-end business processes. The PSA’s benefits are wide-ranging.
Higher project profits
Kytes PSA can help IT companies to deliver projects while saving valuable resources, reducing wastage, real-time tracking of project financials, and proactive decision-making. Its customers have seen their project profitability increase by 5-10%
Judicious use of resources
Often, resources that are either over-skilled or under-skilled for tasks get allocated. Kytes PSA helps with the matching of task and employee skill sets.
Repositories of tasks (based on learning from completed projects) and employee skill sets and integrated operational information are used for this matching.
Such judicious allocation of resources improves deliverables, controls costs, and reduces the demoralizing effects of poor use of people.
Cuts days of sales outstanding
This key enterprise financial indicator can only be improved only by executing projects better and faster and by accurate and timely billing which doesn’t get contested by customers.
DSO can be managed only at the project level and at the level of the individual billable deliverable. Kytes PSA excels in all these.
All that you need for winnable project proposals
Kytes PSA provides information on similar executed projects, risk assessment tools, and an escalation process for approving project bids.
An in-built estimation engine and a document editor make the task of preparing and collaborating on proposals easier and faster. Good quality proposals and well-tuned pricing improve the chances of winning deals.
Digital-first project management
PSA’s project management tools like project planning and tracking sit tightly integrated into enterprise-wide business processes. The digital-first project management is connected with upstream project proposals and downstream project financials. Operationally, it is connected to resource management, leave and timesheets, and HRMS.
The digital-first project management supports T&M, fixed-cost, waterfall, and agile methods of project execution. It helps in nurturing a project management culture.
Improved governance and compliance
The Kytes PSA provides comprehensive oversight of all aspects of project execution and other operational activities. It builds compliance into workflows and makes governance possible.
Give a competitive edge to your IT company
Kytes PSA software for IT companies helps your organization to be proactive and adaptable to changing circumstances.
It helps you to improve profitability, delight your customers, and make your workplace attractive to talented people. The phase-wise implementation of the PSA gives your company a competitive edge.
Get in touch with us at [email protected] to find out more and for a demo.
Further reading on the subject
Reduce the gap between as-sold and as-executed project costs
Faulty resource allocation leaks profits how Kytes PSA helps Part 1 and Part 2
5 point action plan to reduce attrition
