PracticePeople In PracticeOutdated technology results in lost revenue.

Outdated technology results in lost revenue.

Inefficient and outdated billing systems are costing the UK's IT and management consultancy industries up to an estimated £3.7bn a year in lost revenue, writes Alex Miller.

A survey of partners of management consultancies by Watford-based Computron Software revealed billing problems cause one in three consultancies to lose clients. Over half of consultancies questioned said they underbilled more than 10% of their clients, with 55% giving the need to retain clients as the main cause. Computron managing director Mike Morgan said consultancies operated within an increasingly competitive market and worked hard to attract and retain new clients. ‘The competition results in a high level of over-servicing which is understandable in order to satisfy clients’ needs, the reality is that the trend to over-servicing is a reactive measure to compensate for inaccurate or late bills,’ added Morgan. The findings follow a recent report by KPMG Consulting which showed inefficient budgeting systems are consuming up to 30% of senior financial managers’ time. KPMG said: ‘Outdated budgeting systems are one of the main factors slowing companies down, and serious consideration should be given to updating technology used to manage information.’

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