Why Software Vendors Must Invest in Professional Services

Software vendors are still losing deals they should win, and failing to retain clients they could have kept. The reason is rarely the product. It’s the lack of a professional services function that’s intentionally built or properly designed to support adoption, outcomes, and client progress.

Some vendors don’t have one at all. Others have one in name, but not in impact. In both cases, the effect is the same: clients don’t get the results they expected, and vendors leave value on the table.

Most clients don’t struggle with tools. They struggle with complexity, broken processes, siloed systems, internal resistance, and underutilized platforms. Without a services function that tackles these issues head-on—grounded in a clear value proposition—even the most powerful software won’t deliver the expected results.

The reality of enterprise software

Enterprise software is almost never ready to deliver immediate impact and value. It needs to be configured, integrated, adopted, and embedded in the business or organization. That work is often the difference between failure and success.

Here’s what that looks like in practice:

• Complex system environments with hundreds of legacy tools
• Custom processes that require tailored integrations
• Risk and compliance requirements that slow down deployments
• Users who are untrained or unmotivated to adopt new tools
• Change fatigue that derails even well-designed rollouts

Without expert support, enterprise software becomes shelfware. In many organisations, over 40% of purchased software licences are underused by employees. It's not due to the product being weak, but because a disciplined and well-managed implementation process was lacking.

A strong services function helps clients avoid this waste by translating the product into progress—anchored in a clear and outcome-specific value proposition.

Change doesn’t happen without help

Implementation is only one part of the challenge. The bigger challenge is change. And change doesn’t happen by itself.

Professional services teams guide clients through the shift in mindset, workflow, and behaviour that any meaningful software deployment requires. When done well, this includes:

• Onboarding and training tailored to real-life use cases
• Redesign of broken processes or legacy ways of working
• Clear communication and stakeholder alignment
• Support from leadership to keep the transformation on track

The data is clear: projects with strong change management are seven times more likely to meet their goals. Without that support, tools are installed but never embedded.

Clients don’t buy tools. They buy results.

Most clients don’t care which product gets used—as long as it solves their problem. When vendors lead with the product, they assume the client has already diagnosed the issue and mapped the solution. That’s rarely the case.

The stronger position is to lead with the problem:

• What is actually slowing down the business?
• What’s the cost of inaction?
• What outcome would create real momentum?

Only once those questions are answered should the tool come in. This is the model we promote in our work: Issue → Outcome → Tool.

That order matters. It moves the vendor from software seller to trusted advisor. It ensures the client’s actual problem is being solved. It also gives the services team a more strategic role, rather than a post-sale afterthought.

The foundation for this shift is a sharp value proposition—one that connects the software offering to the real business issues clients need to address. Without it, services will always stay reactive and commoditized.

A smarter business model

(Re)investing in professional services—by building or improving the function—is not just good for the client. It’s a smart move for the vendor.

Here’s why:

• Stickier clients. When products are deeply integrated, clients are much less likely to churn.
• Higher renewal rates. Adoption drives outcomes. Outcomes drive retention.
• New revenue streams. For every $1 spent on software, clients typically spend $5 to $10 on related services.
• Stronger sales cases. Clients want to know not just what the software does, but how they’ll succeed with it.

In some cases, professional services can even be used as a strategic lever: offered at low or no margin to accelerate product adoption and lifetime value.

Build or improve, with intention

Whether building a new professional services function or improving an existing one, the goal is the same: to translate software into results. But that requires a services engine designed with intention, not as an afterthought.

That means:

• Starting every engagement with a proper diagnostic
• Designing tiered service offerings (quick start, high touch, outcome-led)
• Offering pricing models that reflect value, not effort
• Training consultants in business impact, not just technical setup
• Equipping partners with the same standards and frameworks
• Anchoring all of it in a value proposition that makes the client’s business case obvious

A services function without a strong value proposition is just another delivery team. A services function with a clear value proposition becomes a growth engine.

Final thought

Software doesn’t deliver value on its own. People do. Process does. Integration does. And behind all of that, there needs to be a clear, outcome-specific value proposition that guides what the services function is actually there to do.

If a vendor wants to win larger deals, retain clients longer, and deliver tangible business outcomes, a professional services function—built or enhanced around a compelling value proposition—is not optional. It’s essential.

In today’s enterprise market, clients don’t buy software. They buy progress.
And it’s the value proposition behind the service function that turns technology into traction.