In 2017, the top 10 Professional Services software vendors accounted for nearly 41% of the global Professional Services applications market which grew 4.8% to approach nearly $14.9 billion in license, maintenance and subscription revenues.
Last year Salesforce was the market leader with 8.9% market share in license, maintenance and subscription revenues, followed by Microsoft, Oracle, SAP and Intuit.
We ask the simple question: Who’s buying Professional Services applications from whom and why? And we provide the answers – supported by decades of research – to our clients around the world. (Sample from our Apps Database)
Through our forecast period, the Professional Services applications market is expected to reach $15.9 billion by 2022, compared with $14.9 billion in 2017 at a compound annual growth rate of 1.3%.
| Exhibit 2: Worldwide Professional services Software Market 2017-2022 Forecast, $M | |||
|---|---|---|---|
| Year | 2017 | 2022 | 2017-2022 CAGR, % |
| Total | 14906 | 15906 | 1.3% |
Source: Apps Run The World, January 2019
Top 10 Professional Services Software vendors
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.
Here are the rankings of the top 10 Professional Services software vendors in 2017 and their market shares.
| Rank | Vendor | 2016 Professional Services Apps Revenues, $M | 2017 Professional Services Apps Revenues, $M | YoY Growth | 2017 Professional Services Market Share, % | Recent Developments |
|---|---|---|---|---|---|---|
| 1 | Salesforce | Subscribe | Subscribe | 23.2% | Subscribe | The recent buy of MuleSoft will be instrumental for Cloud integration, especially in helping customers extend into non-Salesforce systems for key verticals as well as those that Salesforce is still playing catch-up. |
| 2 | Microsoft | Subscribe | Subscribe | 1.1% | Subscribe | Migrating legacy AX, C5, GP, NAV, and SL to Dynamics 365 for the Cloud remains the top priority for Microsoft’s evolving enterprise apps strategy, whose success will depend on strengthening ties with ISV partners in strategic verticals. |
| 3 | Oracle | Subscribe | Subscribe | 3.4% | Subscribe | Oracle has signed more than 22,000 Cloud ERP customers including many listed below. The number of Oracle Cloud ERP customers totals nearly 6,000 for Oracle ERP Cloud and 16,000 for NetSuite. Each quarter Oracle is migrating at least 200 customers of its on-premise ERP systems like E-Business Suite to the Cloud. |
| 4 | SAP | Subscribe | Subscribe | 6.4% | Subscribe | SAP was on track to sign more than 10,000 customers including many listed below for its next-generation ERP S/4HANA by end of 2018 with 40% of the latest additions being considered net new wins for the vendor. |
| 5 | Intuit Inc. | Subscribe | Subscribe | 14.2% | Subscribe | QuickBooks Online subscribers now top 3.6 million(including many listed below), up from 1.6 million in 2016. Meanwhile, Intuit strengthened working capital management and payment offerings for SMBs, along with same-day payroll processing. |
| 6 | Wolters Kluwer | Subscribe | Subscribe | 6.4% | Subscribe | Wolters Kluwer acquired eVision Industry Software BV for industrial operational risk management software. |
| 7 | Adobe | Subscribe | Subscribe | 24.7% | Subscribe | Adobe acquired Marketo for marketing automation and Magento for eCommerce as it pivots from content to CRM and aims to unseat Salesforce for those functions in key verticals. |
| 8 | Sage | Subscribe | Subscribe | 20.9% | Subscribe | Sage aims to drive ERP growth through Business Cloud Enterprise Management(version 12 is the latest) for large enterprises to run a robust framework for improving workflow, enhanced insights and efficiency gains such as automating tax declarative processes. That is being supported by Intacct for midmarket Cloud ERP apps and Sage People for HCM and talent management. |
| 9 | IBM | Subscribe | Subscribe | -4.7% | Subscribe | IBM acquired Red Hat for Cloud security, while IBM unloaded Notes, Sterling and other assets to HCL. |
| 10 | SAS Institute | Subscribe | Subscribe | 2.7% | Subscribe | SAS’s analytics strategy revolves around Viya that enables customers to speed decision-making process by turning to artifiicial intelligence for recommendations and instill trust within their machine learning initiatives that come with data privacy protection. |
| Subtotal | Subscribe | Subscribe | 10.4% | Subscribe | ||
| Other | Subscribe | Subscribe | 1.1% | Subscribe | ||
| Total | Subscribe | Subscribe | 4.7% | Subscribe |
Source: Apps Run The World, January, 2019
Custom data cuts related to the Manufacturing Applications market are available:
- Top 700 Professional Services Applications Vendors and Market Forecast 2017-2022
- 2017 Professional Services Applications Market By Functional Market (16 Markets)
- 2017 Professional Services Applications Market By Country (USA + 45 countries)
- 2017 Professional Services Applications Market By Region (Americas, EMEA, APAC)
- 2017 Professional Services Applications Market By Revenue Type (License, Services, Hardware, Support and Maintenance, Cloud)
- 2017 Professional Services Applications Market By Customer Size (revenue, employee count, asset)
- 2017 Professional Services Applications Market By Channel (Direct vs Direct)
- 2017 Professional Services Applications Market By Product
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.
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.
| Customer | Industry | Empl. | Revenue | Country | Vendor | New Product | Function |
| Accenture | Professional services | 449000 | $34.85B | Ireland | SAP | SAP Business Suite on HANA | Enterprise Resource Planning |
| Accenture | Professional services | 449000 | $34.85B | Ireland | SAP | SAP Business Warehouse | Enterprise Data Warehouse |
| Apple | Professional Services | 132000 | $233.12B | United States | Oracle | Oracle Agile PLM | Product Lifecycle Management |
| Apple | Professional Services | 132000 | $233.12B | United States | SugarCRM | SugarCRM | Customer Relationship Management |
| Arm Limited | Professional services | 6250 | $1.35B | United Kingdom | Microsoft | Microsoft Dynamics CRM | Customer Relationship Management |
| Arm Limited | Professional services | 6250 | $1.35B | United Kingdom | SAP | SAP S/4 HANA | Enterprise Resource Planning |
| Arm Limited | Professional services | 6250 | $1.35B | United Kingdom | SAP | SAP Ariba | Source-to-Pay Procurement and Supply Chain Cloud |
| Arvato Financial Solutions UK | Professional services | 3500 | $1.00B | United Kingdom | SAP | SAP SuccessFactors Employee Central | Human Capital Management |
| athenahealth | Professional Services | 4668 | $924.0M | United States | Oracle | Oracle ERP Cloud | Enterprise Resource Planning |
| Booking.com | Professional Services | 15000 | $2.20B | Netherlands | Anaplan | Anaplan | Planning and Performance Management Platform |
| Booking.com | Professional Services | 15000 | $2.20B | Netherlands | SAP | SAP S/4HANA Finance | Enterprise Resource Planning |
| Care.com | Professional Services | 600 | $146.0M | United States | Workday | Workday Financial Management | Financial Management |
| Carhartt | Professional Services | 4000 | $600.0M | United States | IBM | IBM Watson Commerce | eCommerce |
| CenturyLink | Professional Services | 47000 | $21.30B | United States | Adobe Systems | Marketo | Marketing Automation |
| Cintas | Professional services | 41000 | $6.48B | United States | SAP | SAP SuccessFactors Employee Central | Human Capital Management |
| Code42 | Professional Services | 524 | $100.0M | United States | Digital River | Digital River Global Commerce | eCommerce |
| Delaware International | Professional services | 1800 | $263.0M | Belgium | SAP | SAP S/4 HANA | Enterprise Resource Planning |
| Delaware International | Professional services | 1800 | $263.0M | Belgium | SAP | SAP Analytics Cloud | Analytics Cloud |
| Denver Broncos | Professional Services | 1400 | $300.0M | United States | Ceridian | Dayforce HCM | Human Capital Management |
| Domino\’s Pizza | Professional Services | 14100 | $2.79B | United States | Atlassian | Jira Service Desk | IT Service Management |
| Experian | Professional Services | 17000 | $4.81B | United States | ServiceNow | ServiceNow IT Service Management | IT Service Management |
| Extreme Networks | Professional Services | 3000 | $598.0M | United States | Kinaxis | Kinaxis RapidResponse | Supply Chain Concurrent Planning Platform |
| Professional Services | 13598 | $19.77B | United States | Microsoft | Microsoft Office 365 | Content Management | |
| Fanatics, Inc | Professional Services | 1800 | $200.0M | United States | Oracle | Oracle CX Cloud | Customer Experience |
| Fanatics, Inc | Professional Services | 1800 | $200.0M | United States | Oracle | Oracle Marketing Cloud | Marketing Cloud |
| Fujitsu | Professional Services | 173155 | $39.62B | Japan | Box | Box | Content Management |
| Genpact | Professional services | 78000 | $2.74B | Bermuda | IBM | IBM Planning Analytics | Enterprise Performance Management |
| Goodwill of Central and Southern Indiana | Professional Services | 3500 | $156.4M | United States | WorkForce Software | WorkForce Suite | Workforce Management |
| Grant Thornton UK | Professional Services | 8500 | $1.31B | United Kingdom | UNIT4 | Unit4 Business World On! | Enterprise Resource Planning |
| ICAEW | Professional Services | 737 | $390.0M | United Kingdom | Xactly | Xactly Incent Enterprise | Sales Performance Management |
| ILF Consulting Engineers | Professional Services | 2000 | $200.0M | Austria | Deltek | Deltek ERP | Project ERP Solution |
| IntegraMed Fertility | Professional Services | 2200 | $450.0M | United States | Medallia | Medallia Experience Cloud | Customer Experience |
| ITRS Group | Professional Services | 180 | $20.0M | United Kingdom | Xactly | Xactly Incent Enterprise | Sales Performance Management |
| Lincoln Sentry | Professional Services | 230 | $10.0M | Australia | SAP | SAP Analytics Cloud | Analytics Cloud |
| Metro AG | Professional Services | 135890 | $42.72B | Germany | Wolters Kluwer | CCH Tagetik | Enterprise Performance Management |
| Microsoft | Professional services | 131300 | $110.00B | United States | SAP | SAP SuccessFactors Employee Central | Human Capital Management |
| Microsoft | Professional services | 131300 | $110.00B | United States | SAP | SAP S/4 HANA | Enterprise Resource Planning |
| Nielsen | Professional Services | 56000 | $6.57B | United Kingdom | G Suite (formerly Google Apps for Work) | Collaboration | |
| Oceana Group | Professional Services | 6053 | $420.0M | South Africa | CA Technologies | CA Service Desk Manager | IT Service Management |
| Office Depot Europe B.V. | Professional Services | 6500 | $11.60B | Netherlands | SAP | SAP Commerce Cloud | eCommerce & Omni-Channel Commerce Solution |
| Office Depot Europe B.V. | Professional Services | 6500 | $11.60B | Netherlands | SAP | SAP C/4 HANA | Customer Relationship Management |
| Office Depot Europe B.V. | Professional Services | 6500 | $11.60B | Netherlands | Workday | Workday HCM | Human Capital Management |
| Optus | Professional Services | 8350 | $6.30B | Australia | Ceridian | Dayforce HCM | Human Capital Management |
| Peab | Professional Services | 13187 | $4.36B | Sweden | UNIT4 | Unit4 Business World | Enterprise Resource Planning |
| Pittsburgh Public Schools | Professional Services | 5000 | $578.0M | United States | Tyler Technologies | Minus ERP | Enterprise Resource Planning |
| Proofpoint, Inc | Professional Services | 2047 | $612.0M | United States | Xactly | Xactly Incent Enterprise | Sales Performance Management |
| Prophet | Professional Services | 550 | $30.0M | United States | Oracle | NetSuite OneWorld Professional Services Automation | Enterprise Resource Planning |
| Ricoh IT Solutions | Professional Services | 958 | $100.0M | Japan | Oracle | Oracle EPM Cloud | Enterprise Performance Management |
| Royal Bank of Scotland | Professional Services | 70000 | $12.66B | United Kingdom | ServiceNow | ServiceNow IT Service Management | IT Service Management |
| SAIC | Professional Services | 15000 | $4.30B | United States | NetSuite | Netsuite OpenAir | Professional Services Automation |
| Salesforce | Professional Services | 21587 | $6.67B | United States | G Suite (formerly Google Apps for Work) | Collaboration | |
| SAP SuccessFactors | Professional Services | 3000 | $600.0M | United States | ServiceNow | ServiceNow IT Service Management | IT Service Management |
| Servcorp Limited | Professional Services | 1000 | $400.0M | Australia | Dropbox | Dropbox Business | Content Management |
| StepStone | Professional Services | 900 | $262.0M | Germany | SAP | SAP Business ByDesign | Enterprise Resource Planning |
| Taulia Inc | Professional Services | 250 | $20.0M | United States | Xactly | Xactly Incent Enterprise | Sales Performance Management |
| Tennant | Professional services | 4300 | $1.00B | United States | SAP | SAP Product Lifecycle Management | Product Lifecycle Management |
| The Whiddon Group | Professional Services | 2000 | $400.0M | Australia | SugarCRM | SugarCRM | Customer Relationship Management |
| Tommy Bahama | Professional Services | 1500 | $172.0M | United States | SAP | SAP Commerce Cloud | eCommerce & Omni-Channel Commerce Solution |
| TomTom | Professional Services | 4800 | $903.0M | Netherlands | Workday | Workday HCM | Human Capital Management |
| Travelopia | Professional Services | 4013 | $1.33B | United Kingdom | SAP | SAP S/4 HANA | Enterprise Resource Planning |
| United States Olympic Committee | Professional Services | 500 | $350.0M | United States | Ultimate Software | UltiPro | Human Capital Management |
| Valmet | Professional Services | 12300 | $3.30B | Finland | Infor | Infor LN | Enterprise Resource Planning |
| Valmet | Professional Services | 12300 | $3.30B | Finland | Infor | Infor d/EPM | Enterprise Performance Management |
| Veolia ANZ | Professional services | 4000 | $1.10B | Australia | SAP | SAP S/4 HANA | Enterprise Resource Planning |
| Virgin Mobile USA | Professional Services | 600 | $150.0M | United States | SugarCRM | SugarCRM | Customer Relationship Management |
| Virtusa | Professional Services | 9800 | $600.0M | United States | Microsoft | Microsoft Office 365 | Content Management |
| Wipro | Professional Services | 172912 | $7.74B | India | SAP | SAP Treasury and Risk Management | Treasury and Risk Management |
| ZS Associates | Professional Services | 5000 | $850.0M | United States | SAP | SAP SuccessFactors Employee Central | Human Capital Management |
Source: Apps Run The World, January 2019
Further Readings
An expanded version of this report covers the top 600+ 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 2015-2017 product revenues.
Their 2017 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.
