CFOs are retooling their businesses to generate more revenue from services, including professional services, subscription-based services, software/apps delivered as a service, managed services and usage-based contracts.
More than a third of163 CFOs questioned by Cloud ERP vendor FinancialForce say that subscription-based services have become significantly more important for their companies over the past five years. Roughly the same number (26.9%) see those types of services as an important part of their company’s growth plan over the next two years.
Currently, 71% of CFOs report that more than half of their revenue comes from services, and almost a third report that all their companies’ revenues are service related. More than half (55%) say that services generate a higher percentage of revenues today than they did five years ago.
Only 17% of respondents are confident that their operational and IT infrastructure is equipped to handle the increase in service-related revenues.