ERP systems are designed to manage core business functions like accounting, procurement, and supply chain. PSA software, on the other hand, focuses on project-based service delivery. The biggest difference is that PSA is built around people, projects, and profitability, which makes it a better fit for service firms.
ERP works well for manufacturing or product-focused businesses that depend on inventory and logistics. Service organizations, however, run on time, skills, and client engagements. PSA brings resource planning, project tracking, billing, and profitability together in one system.
For example, an ERP might tell you how much total revenue the company earned last quarter, but a PSA platform will show whether a specific client project was profitable and whether staff were utilized effectively. That level of detail is critical for firms that live or die by billable hours.
Another key difference is complexity. PSA software is lighter, faster to implement, and more closely aligned with the day-to-day needs of consulting firms, agencies, IT providers, and engineering teams. ERP can still be valuable for large enterprises with complex operations, but for most project-driven firms, PSA delivers the visibility and control they need without the heavy overhead.
| Aspect | ERP | PSA |
| Focus | Core business functions (finance, procurement, supply chain) | Projects, people, and profitability |
| Best for | Product/manufacturing firms | Service-based firms |
| Runs on | Inventory and logistics | Time, skills, and client work |
| Strengths | Company-wide financials, operations | Resource planning, project tracking, billing |
| Insights | Broad metrics (e.g., total revenue) | Project-level details (profitability, utilization) |
| Complexity | Heavy, longer to implement | Lighter, quicker to adopt |
