Why Profitability Is Declining in Professional Services
📉 SPI Research reports declining profitability year over year.
📈 Clients are demanding more value.
💸 The traditional T&M billing model is under fire.
💼 Rising resource costs are squeezing margins.
For some companies, project success isn’t just delivery, it’s the foundation for retention and upsell. Yet most firms are flying blind:
❌ No standardized SOWs
❌ No project templates
❌ No visibility across projects
❌ No centralized bookings
❌ Overbooking senior resources
❌ No clear change request process
❌ Poor client communication
❌ No backlog management
❌ Slow employee ramp-up
❌ Broken billing processes
These aren’t just operational headaches—they’re strategic risks.
The Fix: Integrated PSA and Agentic AI for Smarter Delivery
✅ A strong Project Management Office PMO process that includes onboarding, weekly resource reviews, time tracking, project accounting, backlog review, all backed by an integrated Professional Services Automation (PSA) platform.
✅ Standardized client communication, RAID tracking, and change management.
✅ Services integrated with Sales for scope review, handoff, and contract language.
Real Results: $100K Monthly Profitability Boost
At TekStack, we help professional services firms adopt technologies like Agentic AI, CRM, Billing, and PSA to transform delivery, support, and operations. Our product is built on Microsoft technology and completely integrated with Outlook, Teams, and Copilot AI.
We have one customer who adopted our TekStack delivery platform and Project Operations managed services. Overnight they went from averaging $250K per month in services to $350K per month on the same resource base. Thats all bottom line profitability that came through better use of resource allocation, monitoring utilization, change request processes, and timely billing practices (especially for support work). They thought their top resources were 80% utilized, in fact, the top biller was only 50% utilized.
It’s time to stop reacting and start leading.
FAQs
Q: What is PSA in professional services?
A: PSA stands for Professional Services Automation, a system that helps firms manage projects, resources, billing, and client communication.
Q: How does Agentic AI improve project delivery?
A: Agentic AI automates decision-making, monitors utilization, and streamlines change requests and billing processes.
Q: What results can firms expect with TekStack?
A: One customer increased monthly services revenue from $250K to $350K using the same resource base.
Ready to Lead, Not React?
It’s time to stop reacting and start leading.
👉 Book a demo with TekStack to see how our integrated PSA and Agentic AI platform can transform your delivery operations.
