PSA 101: What it is, what it isn’t, and how to know if you need it
This article is written by Yvette Ross, Director of Product Marketing with Certinia. Her goal is to help organizations understand the value of the right cloud platform and how it can help organizations run a most intelligent, agile, and connected business. Get her insights here on the what PSA tools are all about, what they’re not, and why services business need them.
If you hear “PSA” and immediately think of a Public Service Announcement, you’re not alone. But in the world of B2B services, PSA stands for Professional Services Automation—and it’s the secret weapon behind some of the most efficient and profitable services organizations.
In fact, for a wide range of services organizations — whether consultancies, agencies, or embedded services teams — PSA software can be the difference between scattered chaos and a well-oiled, highly profitable machine.
So, what is PSA really? How do you know if your business needs it? And more importantly, what happens if you don’t use it?
What Is Professional Services Automation (PSA)?
Think of PSA as the mission control center for your service delivery, bringing together project management, resource allocation, time tracking, billing, and analytics in a single, connected workflow. The goal: keeping projects on time, customers happy, and margins healthy.
A strong PSA solution like Certinia PS Cloud connects sales, services, and finance teams, providing real-time visibility from opportunity through delivery to revenue recognition. Imagine going from closed deal to project kickoff without the usual handoff headaches. That’s PSA in action!
The impact of PSA tools can be profound, and if you’re still relying on spreadsheets or disconnected tools, you’re probably leaving revenue on the table. According to third party expert research, companies using PSA report:
- 10% higher billable utilization rates
- 14% better project margins (35.7% vs. 31.3%)
- 161% greater deal pipeline forecasting accuracy
What PSA Isn’t
One of the biggest misconceptions about PSA is that it’s the same as Project Portfolio Management (PPM), Human Capital Management (HCM), or IT Service Management (ITSM). While these tools may overlap in certain areas, their focus is entirely different. Here’s a breakdown:
- Portfolio Project Management (PPM): Primarily used for managing a portfolio of projects, PPM tools help organizations prioritize initiatives, align projects with strategic goals, and allocate budgets—often with an IT or internal operations focus. While PPM ensures projects fit within the broader business strategy, it doesn’t manage the day-to-day execution of service delivery. Many IT-driven organizations naturally lean toward PPM tools because they’re familiar with project management frameworks but may not realize that PPM lacks the financial and resource management depth needed for services businesses.
- Human Capital Management (HCM): Focused on the broader workforce, Human Capital Management systems handle HR functions like hiring, onboarding, payroll, and compliance. While some HCM platforms include workforce planning, they don’t provide the real-time project staffing, resource scheduling, or utilization tracking that PSA offers. HR and operations teams may assume HCM systems can handle resourcing because they track workforce data, but HCM lacks the dynamic scheduling, utilization tracking, and project profitability insights that PSA provides.
- IT Service Management (ITSM): Designed for internal IT service teams, IT Service Management tools help organizations track and manage IT support tickets, change requests, and system incidents. While ITSM optimizes IT workflows, it doesn’t support external service engagements, project profitability, or revenue management—all of which are core to PSA. ITSM users, particularly in technology services, may think an ITSM platform can handle services delivery because it tracks customer issues and requests, but ITSM doesn’t provide project tracking, time management, or revenue forecasting.
- Professional Services Automation (PSA): Unlike PPM, HCM, or ITSM, PSA is built for services businesses, ensuring efficient project delivery, resource allocation, profitability tracking, and customer success. If your business runs on projects and people—whether consulting, professional services, or embedded services teams—PSA connects sales, services, and finance in a single system, ensuring that every engagement is profitable and predictable.
If you’re running a services business and relying solely on PPM, HCM, or ITSM tools, you’re operating with blind spots. These systems may cover aspects of project tracking, workforce management, or IT workflows, but they don’t provide the full-service visibility, resource optimization, or financial insight that a true PSA solution delivers.
PSA software is key to ensuring your sales, services, and finance teams are always aligned so you can forecast revenue with confidence, allocate resources effectively, and maximize profitability.
Do You Need PSA? Answer These 5 Questions
Is your project data scattered across spreadsheets or disconnected tools? PSA brings everything into one place—from project plans to timesheets—so you can say goodbye to version confusion and data silos.
Do you struggle with resource allocation? Advanced resource management tools (like Certinia’s) help you match capacity to demand, ensuring the right people are on the right projects at the right time.
Are you losing revenue due to billing errors or project overruns? PSA integrates time tracking, expense management, and billing to reduce leakage and ensure you bill accurately for every hour worked.
Can you forecast revenue and project profitability with confidence? With built-in analytics and real-time reporting, PSA helps you predict revenue, monitor project margins, and make informed decisions.
Do your sales and services teams feel disconnected? PSA, especially when integrated with a CRM like Salesforce, ensures opportunities seamlessly translate into projects, keeping everyone in sync.
Why Certinia PSA Is Different
- One Platform, Total Visibility: Built natively on Salesforce, Certinia PS Cloud provides a single source of truth from sales through delivery to revenue recognition.
- Smarter Resource Management: Find the right person for every project with advanced resource optimization
- End-to-End Automation: Automate project creation, time tracking, billing, and revenue recognition—no manual handoffs, no missed billable hours
- Data-Driven Decisions: Embedded analytics surface insights from backlog to profitability, so you can run your services business with confidence
- The Best in AI: Leverage real, pragmatic AI-powered solutions including cash flow forecasting, schedule optimization, margin optimization, and service estimate optimization. And as one of the first ISVs invited to join Salesforce’s Agentforce Partner Network, you’ll have VIP access to some of the most cutting edge agentic AI capabilities on the market.
So Do You Really Need PSA?
If you’re juggling multiple projects, resources, and customers, the answer is yes: PSA is the smartest way to run your services business.
And if you’re considering PSA, why not choose the leader in services automation? Certinia PS Cloud helps the world’s largest services organizations drive growth, boost margins, and delight customers—all on Salesforce, the customer platform of record.
Ready to See PSA in Action? Your services business deserves better than spreadsheets. Let’s chat about how Certinia PS Cloud can help you manage your projects, people, and profits more effectively. Schedule a demo today!
