Predictive Analytics for Services Organizations: Project and Budget Forecasting

▤ Summary

Predictive analytics is seldom discussed in the services industry, yet the impact is substantial when leveraged correctly, leading to better cost estimation and budgeting in project management and improved resource utilization. At the same time, leaders receive real-time operational and financial data that provides reliable revenue and headcount projections to easily scale their organization. As summarized by Investopedia, “Budgeting quantifies the expectation of revenues that a business wants to achieve for a future period, whereas financial forecasting estimates the number of revenues that will be achieved in a future period.” Budget planning in project management typically takes place during the proposal process to ensure project profitability and accurate client pricing. Project budgeting and forecasting accounting software empowers services teams to leverage predictive analytics to calculate a budget’s estimate-at-completion, in addition to actuals-to-date. Technology that is specifically built for service-based organizations, such as Professional Services Automation (PSA) software, provides this data as a single source of the truth.

▦ Linked Companies

Projector PSA

$1M to $5M