In 2016, the top 10 Professional Services software vendors accounted for nearly 31% of the global Professional Services applications market which grew 1.8% to approach nearly $16.9 billion in license, maintenance and subscription revenues.
Last year Microsoft was the market leader with 6% market share in license, maintenance and subscription revenues, followed by Oracle, SAP, Salesforce and Wolters Kluwer in that order.
Through our forecast period, the Professional Services applications market is expected to reach $18.3 billion by 2021, compared with $16.9 billion in 2016 at a compound annual growth rate of 1.7%.
| Exhibit 2: Worldwide Professional services Software Market 2016-2021 Forecast, $M | |||
|---|---|---|---|
| Year | 2016 | 2021 | 2016-2021 CAGR, % |
| Total | 16850 | 18297 | 1.7% |
Source: Apps Run The World, January 2018
Professional Services Market Definitions And Forecast Assumptions
Professional services (Business, engineering, IT, legal services) – Timesheet and billing, Legal Practice Management, Project Management, Project Portfolio Management, Field Service Management Software, Professional Services Automation, FInancials, HR, Procurement
Professional services firms invest heavily in new tools that boost collaboration, CRM and HR best practices aided by a mix of new entrants from industrial ERP space namely Roper as well as Cloud startups like FinancialForce, all of which aim to accelerate legacy system replacements across different segments including AEC, business and IT consulting firms.
Top 10 Professional Services Software vendors
Here are the rankings of the top 10 Professional Services software vendors in 2016 and their market shares.
| Rank | Vendor | 2015 Professional Services Apps Revenues, $M | 2016 Professional Services Apps Revenues, $M | 2016 Professional Services Apps YoY Growth, % | 2016 Professional Services Apps Market Share, % | Recent Developments |
|---|---|---|---|---|---|---|
| 1 | Microsoft | Subscribe | Subscribe | Subscribe | Subscribe | Microsoft Dynamics 365 now covers both CRM and ERP functionality for multiple verticals. |
| 2 | Oracle | Subscribe | Subscribe | Subscribe | Subscribe | With its extensive Cloud product portfolio, Oracle has captured more than 25,000 Cloud customers covering 65M+ active users across different verticals. |
| 3 | SAP | Subscribe | Subscribe | Subscribe | Subscribe | SAP has signed more than 6,900 customers for its next-generation ERP suite S/4 HANA as of October 2017. |
| 4 | Salesforce | Subscribe | Subscribe | Subscribe | Subscribe | Focusing on migrating Classic users to Lightning user interface in order to deliver next-gen CRM experiences. |
| 5 | Wolters Kluwer | Subscribe | Subscribe | Subscribe | Subscribe | Wolters Kluwer bought Tagetik for EPM applications to complement an extensive set of risk solutions for different verticals. |
| 6 | Intuit Inc. | Subscribe | Subscribe | Subscribe | Subscribe | Intuit has sharpened its focus on QuickBooks after divesting noncore products. |
| 7 | Aderant | Subscribe | Subscribe | Subscribe | Subscribe | Acquired Handshake Software for portals, knowledge management and search for legal vertical. |
| 8 | Sage | Subscribe | Subscribe | Subscribe | Subscribe | Sage targets Cloud growth, Timberline now Sage 300 CRE |
| 9 | IBM | Subscribe | Subscribe | Subscribe | Subscribe | IBM Watson serves as the brain behind its BI strategy, redefining how different verticals incorporate and optimize artificial intelligence into their business processes. |
| 10 | Deltek, a Roper Technologies Company | Subscribe | Subscribe | Subscribe | Subscribe | Roper, a diversified company, acquired Deltek to boost its presence in professional services and PPM. |
| Subtotal | Subscribe | Subscribe | Subscribe | Subscribe | ||
| Other | Subscribe | Subscribe | Subscribe | Subscribe | ||
| Total | Subscribe | Subscribe | Subscribe | Subscribe |
Source: Apps Run The World, January, 2018
Exhibit 4 shows our projections for the enterprise applications market by vertical segment, based on the buying preferences and the customer propensity to invest in new software within those industries as they continue to upgrade and replace many legacy industry-specific applications that have been identified and tracked in our Buyer Insight Database.
Exhibit 4: Worldwide Enterprise Applications Market Forecast 2016-2021, By Vertical Industry, $M
Professional services Software Purchases Win/Loss Analysis As Part Of Enterprise Applications Buyer Insight Customer Database
On the buyer side, customers are investing in Professional services applications based on new features and capabilities that are expected to replace their existing legacy systems. In many cases, competitive upgrades and replacements that could have a profound impact on future market-share changes will become more widespread.
Since 2010, our global team of researchers have been studying the patterns of the latest Professional services software purchases by customers around the world, aggregating massive amounts of data points that form the basis of our forecast assumptions and perhaps the rise and fall of certain vendors and their products on a quarterly basis.
Updated continuously, our database features extensive win/loss analysis. Each year our research team identifies tens of thousands of these Professional services customer wins and losses from public and proprietary sources.
The research results are being incorporated into regular updates in our Enterprise Applications Buyer Insight Customer Database. You can access the Quarterly Win/Loss Analysis Scoreboard and our Enterprise Applications Buyer Insight Customer Database by becoming a subscriber.
Further Readings
An expanded version of this report covers the top 500+ Professional services Software Vendors, offering in-depth analysis of the market dynamics, vendors’ Strengths, Customers, Opportunities, Risks and Ecosystems as well as their ability to gain Shares (SCORES) within their respective space. We also offer win-loss analysis of the quarterly wins of these top vendors and whether incumbents and upstarts pose any real threat to their standing amid shifting market requirements and user preferences.
More Enterprise Applications Research Findings
Based on the latest annual survey of 3,000+ enterprise software vendors, Apps Run The World is releasing a number of dedicated reports, which profile the world’s 500 largest Enterprise Applications Vendors (Apps Top 500) and the world’s 500 largest Cloud Applications Vendors (Cloud Top 500) ranked by their 2015-2016 product revenues.
Their 2016 results are being broken down, sorted and ranked across 16 functional areas (from Analytics to Treasury and Risk Management) and by 21 vertical industries(from Aerospace to Utility), as shown in our Taxonomy. Further breakdowns by subvertical, country, company size, etc. are available as custom data cuts per special request.
Research Methodology
Each year our global team of researchers conduct an annual survey of thousands of enterprise software vendors by contacting them directly on their latest quarterly and annual revenues by country, functional area, and vertical market. We supplement their written responses with our own primary research to determine quarterly and yearly growth rates, In addition to customer wins to ascertain whether these are net new purchases or expansions of existing implementations.
Another dimension of our proactive research process is through continuous improvement of our customer database, which stores more than one million records on the enterprise software landscape of over 100,000 organizations around the world.
The database provides customer insight and contextual information on what types of enterprise software systems and other relevant technologies are they running and their propensity to invest further with their current or new suppliers as part of their overall IT transformation projects to stay competitive, fend off threats from disruptive forces, or comply with internal mandates to improve overall enterprise efficiency.
The result is a combination of supply-side data and demand-generation customer insight that allows our clients to better position themselves in anticipation of the next wave that will reshape the enterprise software marketplace for years to come.
