In this episode of The Consultant’s Way Podcast, hosts Dean McMann and Anthony Paluska discuss the increasingly relevant concept of Professional Services as a Service (PSaaS). As organizations aim to adopt subscription-based models inspired by SaaS (Software as a Service), the hosts explore its implications, opportunities, and challenges for professional services teams.

Dean and Anthony dive into why organizations pursue this shift, noting that the primary drivers are financial: predictable revenue, simplified reporting, and improved valuations. However, the transition is far more complex than it seems, involving significant changes across business models, sales processes, and resource management.

A key theme is the tension between project-based work and PSaaS models. While project-based consulting offers defined scopes and resource plans, the PSaaS model creates longer-term, flexible relationships, often akin to retainers. Clients benefit from ongoing access to expertise, but it requires careful resource management to avoid conflicts between existing project commitments and PSaaS obligations.

The conversation highlights the role of customer success teams in this new model. As PSaaS becomes tied to software subscriptions, customer success teams are often pulled into problem-solving roles traditionally handled by professional services, creating confusion and lost opportunities. Clear escalation processes and rules of engagement are critical to avoiding overlap and ensuring client satisfaction.

Dean and Anthony also emphasize the importance of talent and resource allocation in a PSaaS environment. Managing interchangeable talent and balancing high-demand resources becomes increasingly difficult, particularly when running both PSaaS and project-based businesses simultaneously.

The hosts share examples of organizations attempting this transition. While clients are often receptive to the model and its value proposition, internal challenges—such as execution issues and lack of clarity—frequently derail success. They stress that PSaaS is not merely a pricing strategy but a business model transformation requiring holistic changes across sales, delivery, and support functions.

This episode provides a thoughtful exploration of PSaaS, encouraging leaders to view it as an opportunity for innovation while acknowledging its complexities and organizational impacts.