What is a professional services firm? Discover how these expertise-driven businesses work, what types exist, and key stats about this $6 trillion industry.
In short, a professional services firm sells specialized expertise and knowledge to clients. Staff at these firms typically hold high-level qualifications and bring unique experience to their work. They log billable hours that the firm charges back to clients. Clients enlist these businesses to help solve problems, make informed decisions, or improve their operations.
Read more: The 4 types of professional services.
How Professional Services Firms Work
Although professional services firms span many industries and disciplines, they all follow a similar model: Provide expert skills to clients in order to bolster the client’s success. and that success depends on the knowledge and reputation of their people. At their core, professional services firms are about relationships — with clients and with employees alike.
What Types of Firms Qualify As Professional Services?
- Supply Chain Management
- Information Security Consulting
- Crisis Management Consulting
- Occupational Health and Safety Consulting
- Risk Management Services
- Intellectual Property Consulting
- Customs and Trade Consulting
- Organizational Development
- Data Analytics Services
- Immigration Consulting
- Software Development Services
- Mergers and Acquisitions Advisory
- Mobile App Development
- Content Creation and Copywriting Services
- IT Project Management
- Quality Assurance Consulting
- Sustainability Consulting
- Management Consulting
- IT Consulting
- Engineering Services
- Architectural Services
- Marketing and Advertising
- HR Consulting
- Healthcare Consulting
- Public Relations (PR)
- Environmental Consulting
- Training and Development
- Creative Services
- Business Process Outsourcing (BPO)
- Executive Coaching
- Cybersecurity Consulting
- Health and Safety Training
- Workplace Diversity and Inclusion Consulting
- Business Analytics Consulting
- Government Policy Consulting
How Big Is the Professional Services Industry?
The industry is large and growing fast. The global professional services market was valued at $6.02 trillion in 2022 and is projected to exceed $10.17 trillion by 2031 — a projected growth rate of 6.4% through 2032. In the United States alone, revenue is expected to reach $31.95 billion in 2024.
A few other numbers that illustrate the industry's momentum:
- The professional services industry has a projected growth rate of 6.4% through 2032.
- The emphasis on digitizing businesses is identified as a major growth driver.
- Approximately 80% of professional services firms plan to increase their investment in talent retention in 2023.
- Technology & IT consulting services constituted 31% of all professional services sold globally in 2022.
How Do Professional Services Firms Manage Their Operations?
Because these firms run on people, projects, and billable time, many rely on Professional Services Automation (PSA) software. PSA software are specialized tools that handle service delivery, resource planning, finances, project management, and business performance tracking in one place.
Learn more: What is professional services automation (PSA) software?
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