In a resent report, the Aberdeen Group, a leading market analysis and positioning services firm, states that the growth rate of Professional Services Automation (PSA) is solid and stable, projected to be $810 million in 2002 and on a constant upward movement in the future.

PSA solutions increase operational efficiency and enterprise profitability through improved planning, increased collaboration and personnel utilization, and integrated knowledge management. PSA is a foundation technology that enables other enterprise solutions such as customer relationship management, enterprise resource planning and human resources to work together from a common database.

The Aberdeen report discusses major findings in the PSA market, including the emerging trend of vendors to differentiate themselves through specific vertical market focus and the decision PSA vendors are facing in the ASP versus licensing models. Aberdeen further notes that PSA has moved, in the past few years, from an emerging technology to a mandatory enterprise solution for services-oriented organizations (SCOs) and has experienced continual growth in spite of the otherwise debilitating economic and political events of the past year.

"While workforce management solutions, and many point solutions have been available for several years, it is their integration built on an Internet platform that has created such a strong demand for PSA over the past few years," states report author David Hofferberth, research director of Aberdeen's PSA practice.

"These early successes, despite the ongoing economic and political concerns, will give the PSA market a substantial growth rate of approximately 40 percent in 2002."

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