Press Releases
Contacts:
Diane Brundage, SVP Marketing & Volume Operations
TPSA
(408) 354-7136
dbrundage@tpsaonline.com
New Compensation Study Reveals Key Professional Services Trends
Confidential Survey of Top PS Providers First to Offer In-Depth Analysis and Comparison of Services Delivery, Engineering, and Sales
SAN DIEGO, June 25, 2007 – The Technology Professional Services Association (TPSA) announced it has recently completed a multi-member study on the subject of compensation in technology professional services. Participating member companies provided thousands of data points related to compensation and compensation policies for 12 professional services positions in services delivery, services engineering, and services sales. The study yielded an unprecedented view of professional services compensation in general, and a particularly rich understanding of the drivers of variable compensation.
“Compensation is an area of keen interest for TPSA members and for the industry in general,” according to Bo Di Muccio, Ph.D., senior director of research and advisory services for TPSA. “Compensation goes to the heart of TPS profitability and management, and is a key structural component for PS organizations. Yet, many TPS organizations are managing compensation for key roles without the benefit of industry benchmarks, particularly when it comes to variable compensation.”
Among the key findings of the study is that many roles in technology professional services are under-leveraged in terms of the mix of base and variable compensation. This is particularly the case for delivery roles, which have the lowest percentage of variable compensation of the three functional areas studied. Perhaps even more surprising is the finding that project performance and customer satisfaction are essentially non-factors in TPS variable compensation, even for project delivery professionals.
“The results of this study highlight the importance of facilitating an industry-wide effort to improve PS metrics that will ultimately enable optimization across many issues, including compensation,” DiMuccio said.
TPSA now offers a broad range of research services to its 70-plus member companies. In addition to the study on compensation, TPSA is also conducting separate multi-member studies this summer on the topics of market rates and project performance.
About TPSA
The Technology Professional Services Association (TPSA) is the first and only organization for executives who create, produce, deliver, manage, measure, and optimize technology services in the world’s leading corporations. Member companies represent a diverse group of market segments including hardware and software products, systems integration, on-demand hosted applications, and value-added solutions.
Led by experienced PS professionals and thought leaders, TPSA provides real-world guidance to address complex and pressing business challenges. Among its popular member benefits is TPSA Research, which includes the industry’s only comprehensive PS Benchmark Study. TPSA also provides advisory services, unique industry insights, and both web-based and in-person collaboration platforms to better manage the business of delivering technology professional services.
TPSA is a member of a global network of associations that includes the Service & Support Professionals Association (SSPA) and the Association for Services Management International (AFSMI). More information on TPSA can be found at www.tpsaonline.com.
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