The $3 trillion global services market is on the cusp of disruption, and firms need to evolve or risk getting left behind
IRVINE, Calif., Jun. 23, 2016 — Mavenlink, the award-winning project management and resource planning SaaS solution and a Gartner 2015 Cool Vendor*, announced today it has released its latest ebook, Thriving in the Service Level Economy.
The ebook connects how the collision of several trends — including the accelerating speed, rising complexity, and increasingly global nature of business — is ushering in a period of significant opportunity and transition for the rapidly growing services industry.
“The globalization of services stems from the acknowledgement that longstanding business models of ownership and control are completely inadequate today,” Mavenlink CEO and author Ray Grainger states. “The most effective models rely on outside resources to scale up and down with speed.”
Grainger explores the period of transition facing consulting, IT, creative, and other professional service firms. Citing third-party data and over 30 years’ industry experience, he weaves practical observations into concrete predictions these industries face, including increased client demands, compressed delivery timelines, and growing margin pressures.
“Organizations are striving to be more lean and agile,” Grainger states. “As a result, the need to collaborate across business and geographic boundaries is growing rapidly. Clearly, it’s a great time to be a service provider, and it’s also a very challenging time.”
Grainger makes the point that organizations must adapt or face becoming outdated and unable to compete. “The global professional services market represents a massive, $3 trillion opportunity today. However, to take advantage of this large and growing market, services organizations need to completely reimagine their operating models to better connect, orchestrate, and optimize their businesses,” he writes. “Incumbents must evolve to survive or risk losing business to more nimble firms with more innovative models.”
The Service Level Economy
In the ebook, Grainger introduces the concept of the Service Level Economy. The Service Level Economy is defined as the fluid exchange of services and revenue among clients and providers today, which creates a dynamic business ecosystem. The increased expectations of clients in this ecosystem are forcing a new type of competition. According to Grainger, to thrive service providers will need to master transparency, accountability, scalability, performance, and building trust.
Looking to the future, Grainger hypothesizes that it is the highly efficient, scalable and global services organizations that emerge from the Service Level Economy that accelerate the formation of business ecosystems, a topic which visionaries including Deloitte’s Eamonn Kelly and John Hagel have written about extensively.
“The Service Level Economy is not a vision for future of the services industry — it is a pivotal transformation that has already begun. Increasingly businesses of every shape and size will be able to find and consume a larger volume of hyper-specialized services with greater speed and confidence, all around the world. I believe the formation of these business ecosystems of suppliers and collaborators will be one of the biggest transformations of our lifetime.”
Thriving in the Service Level Economy: The Evolution of Business Ecosystems is available now to download. Visit Mavenlink for more information.
About The Author
Ray Grainger, co-founder and CEO of Mavenlink, is a recognized and awarded expert in technology and services delivery. He honed his expertise as a global managing partner at Accenture, where he helped organizations such as Apple, 3M, Sony and Oracle work smarter and more profitably. Ray founded Mavenlink to help professional services companies grow by combining technology and industry best practices.