Service-as-Software Is Coming. Your Professional Services Automation (PSA) Tool Wasn't Built for It.
One pricing model collapse is getting all the attention. Another one is flying under the radar — and it might matter more.
The one everyone's talking about: per-seat SaaS giving way to outcome-based pricing. If agents do the work, you don't buy seats. You buy results.
The quieter one: Time & Material billing — the backbone of professional services for decades. Human hours were the proxy for value. Log them, bill them, track utilization. The entire operating model built on that single assumption. Agents don't have billable hours. They just execute. And the human-hours model is breaking.
Which brings us to Service-as-Software. SaaS meant software delivered as a service — humans still drove the work. Service-as-Software flips it: the service is delivered by software. In some workflows, agents are Copilots — first line, assisting humans who own the outcome. In others, Autopilots — executing autonomously, humans handling only exceptions. Most real engagements will run all three in parallel: human hours, assisted hours, agent-executed hours. our PSA needs to track all of it. No PSA today was built to.
Open questions — genuinely curious what people think:
- If human hours, copilot hours, and compute hours all contribute to delivery — how do you bill for all three?
- If utilization rate is the operating metric of a human-driven PSA, what replaces it in a Service-as-Software world?
- How do you track project margin when costs are split between salaries and compute?
- Does PSA need a new expansion — Professional Services Agents instead of Professional Services Automation?