Debunking the Myth that Software Implementation Services Can’t Be Productized

Software Implementation Services Can Be Productized

There are many examples of software implementation services providers and other technical services providers offering clients pre-packaged, fixed-priced services with clearly defined scopes of work and delivery timelines. Yet, we still often get asked:

“Can software implementation services be productized?”

The answer is yes, and this post explains how.

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The Myth: Customer Needs Are Too Custom

Some argue that customer needs are too unique to fit into standardized service offerings. But consider this:

If complex services like colonoscopies and technical corporate law can be productized, then software implementation services certainly can be as well.

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It’s Not a Binary, All-or-Nothing Decision

The real question isn’t whether all or none of implementation services should be productized. Instead, we should be asking:

“Which portion of our services can be effectively productized?”

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Humans Are More Alike Than Different

While it’s true that software buyers and their implementation needs aren’t all exactly the same, most are more similar than they are different. This mirrors the well-known 80/20 or 70/30 rule common in nature and business:

• 70-80% of customer needs can be addressed with 20-30% of standardized services.

• It’s these repeatable, high-demand services that should be productized.

For the remaining 20-30% of customers whose needs are too nuanced to fit into productized offerings, the traditional time-and-materials approach remains the right fit. This hybrid approach balances efficiency with flexibility, ensuring all customer needs are met effectively.

The Myth: Software Implementation services are too custom

If colonoscopies and technical corporate law services can be productized, software implementation services can be productized.

First, it's not a binary, all or no services

The real question isn’t whether all services should be productized, but rather which services can be effectively productized.

We/Humans are more alike than they are different

While it’s true that software buyers aren’t all exactly the same, most have more similarities than differences.

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What Are Productized Services?

Productized services represent a logical evolution for SaaS companies and service providers aiming to meet modern customer expectations. In the SaaS economy, customers demand rapid time-to-value (TTV), and productized services offer a way to meet this need by standardizing delivery, ensuring faster implementation, and creating predictable outcomes.

Benefits of Productized Services

       
• Clarity on deliverables: Customers know what they’ll get.
       
• Predictability in timing: Set turnaround times for faster implementation.
       
• Cost certainty: Fixed pricing eliminates budget concerns.
   

Why Productization Works for Software Services

1. Variation Exists, But It’s Manageable

Critics argue that no two service jobs are identical, making standardization impossible. However, standardization doesn’t mean sacrificing flexibility. Tactics such as “t-shirt sizing” services and offering a la carte options allow providers to balance uniformity with customization, simplifying delivery while still addressing customer-specific nuances.

2. Efficiency and Profitability Gains

       
• Eliminates time spent on custom proposals.
       
• Accelerates project kickoffs, winning more clients.
       
• Delivers faster results, improving customer satisfaction.
   

3. Managing the Exceptions

For the minority of customers with uncommon needs, providers can still offer custom quotes. Human-to-human conversations remain invaluable for uncovering these outlier requirements and ensuring the right solution is offered.

Fixed-Price vs. Hourly-Based Models

Fixed-Price Implementation Services

Precursive emphasizes the importance of clear, outcome-oriented packages in driving faster TTV and improving customer satisfaction. Fixed-price services exemplify this approach by ensuring predictable costs and clearly defined deliverables. By leveraging standardized contracts and templates, providers can minimize delays and maximize the value delivered.

Hourly-Based Implementation Services

       
• Flexible and adaptable for projects with evolving needs.
       
• Buyers pay only for time used, which can be cost-effective for smaller or less complex projects.
       
• Unpredictable costs and risks of scope creep.
   

Conclusion

The idea that software implementation services can’t be productized is rooted in misconceptions about variability and flexibility. In reality, productized services provide clear deliverables, predictable timelines, and fixed costs that work for most customers. They streamline processes, improve customer satisfaction, and drive profitability for providers. For the minority of customers with complex needs, traditional models remain an option.

By embracing productized services for the majority of projects, software providers can unlock new levels of efficiency and scalability, leaving behind the inefficiencies of the past. The result? Happier clients, better margins, and faster growth.