- by Net Pro Referral
- 27 Jun 2018
10 Leading Trends that Are Changing the Market of Professional Services
For those who don’t know what is professional services trends 2018, let me tell you-it includes a wide range of different jobs that offer support to businesses of different niches and sizes. Indeed, the role of people working in professional services is to offer an expert advice to their customers and maximize profitability.
Professional Services Industry Overview
Over the past few years, the professional services business industry has grown rapidly. According to a report published by the Business Research, the industry is going to get 5.4% growth rate from 2016 to 2020 that will reach almost $5 trillion.
According to the Global Market’s professional services industry analysis report, North America was the biggest region in the professional services market that had approximately 37% market share. Whereas, Europe was the second largest region that had around 24% market share.
Professional Services Sector:
Usually, professional service providers keep the specialized knowledge in the fields like finance, law, and general professional services. You can find these providers in both public and private sector.
Although there is no Authoritative List of Occupations where Professional Service is Used Yet some of the Commonly Held Examples are:
● Financial planner
● Investment manager
● IT consultant
● Management consultant
What are Professional Services:
Professional service is used by businesses to take help in client handling, business growth, research, consulting and dealing with different business challenges that may appear over the time.
Let’s take a Look at some of the Important Aspects of Professional Services:
● Auditing - This task involves reviewing the accounts of businesses to protect the legality of their different financial documents.
● Consulting - Experts at Professional services work with an organization to help them reduce the overall cost.
● Tax - They advise businesses on how to achieve tax efficiency and work on tax returns.
● Actuarial - Professional services help organizations evaluate the possible future risks and create a strong plan to deal with them.
● Financial Advisory - They also offer professional advice on business investment
Recent Trends in Service Marketing
The service marketing landscape is ever-changing. Like every industry, professional services industry has been transforming rapidly. Due to changes in technology and working environment, businesses are forced to rethink on how to grasp the attention of their target audience. Let’s have a look at some professional services industry trends.
Professional Services Trends 2018
1. Back-End Services and Automation
Today, no company wants a delay in their projects, therefore, back-end services automation has been widely accepted to abolish paper-driven process. The professional service industry has also accepted this technology to match front-end services as they have shifted to the latest electronic check records and left the traditional process of paper scanning and filling.
2. Revenue Model Based on Market Value
Nowadays, professional services firms are acting as advisors not just as service providers. As a result, they are shifting toward value-oriented revenue model. In comparison to the traditional billing system, value-oriented billing is quite easy to implement, because the values such as ad placements, tax saving, damage awards, etc are more clear in it. It is believed that more professional services companies will shift to this new trend.
3. Cloud Storage of Data
Growing demand for an affordable and easy to use data storage system has given birth to cloud storage of data. Indeed, it is a cloud computing model that creates data back over the internet through a cloud computing provider who is accountable for operating and managing data storage. Professional service providers are taking enough advantage of this service to save utilities, improve corporate flexibility and cost-effectiveness of their clients. This service eliminates the requirement for expensive infrastructure.
Prior to the year 2015, this sector has witnessed seamlessly increasing the revenue of $230.4 billion in 2016. According to surveyed data, it is reported to have a hike of 12.2 %. The manufacturer and the industrial sector have the major contribution for the big revenues. Whether it is the automobile transportation or the huge skyscrapers to be designed, all are one of the major contributions that directly comes from the engineering sectors. Their processes are comprising of major preparation and evaluation that are led by keen inspection and expert assistance.
5. Legal Sector
Professional services firms have brought a big business transformation in the legal sector as well. Since legal services industry is becoming highly competitive, professional services are helping them to deal with general business challenges by providing them proven solutions.
6. Accounting and Management
This sector is reported to have substantial growth of 10.2% and is responsible for generating a huge marginal revenue of $171.3 billion. Whether it is tax preparation, auditing, or managing payroll – professionals are supporting some of the big clients. More than 1.5 million professionals are getting huge payrolls by accounting and managing big corporates.
7. Professional Architectural Services
The majority of the revenue generated by the professionals from this sector is through nonresidential construction. Having worth of more than $73.1 billion, professionals often require firm execution of planning and industrial layout training. With more than 163,000 employees hired by around 21,500 firms, this sector is booming. Engineering skills along with careful planning are all it requires to build industrial complexes and buildings. With over 13.7% of enhancement, this sector will never face the crisis in any way possible.
8. Consultation and Management
Even though this subsector faced a downfall by 1.2% and generated a revenue of $254.5 billion, the experts have great optimism for the future of this department. Many corporations solely depend upon the consultancy, human resources and general management firms that fall under this category. Employing more than 1.2 million professionals all over the globe, this service is comprised of more than 169,000 firms.
9. Credit Risk Proficiency and Assessment Services
One of the biggest issues that big businesses face nowadays, is transfer pricing. With increasing demand for quality and precision, multinational companies are demanded to use right data and tools to standardize the pricing issue. Not to mention if neglected, it may result in huge taxation issue that a well-established company certainly want to stay away from. It requires sheer experience and knowledge of the subject to handle this department. These services are high in demand and professionals in this department not only manages the pricing transfer but also audit the accounts.
10. A.I. Experience
Artificial intelligence is going to be a major driver for businesses in their digital transformation. Professional services companies are making use of AI to deal with different issues of their clients. Ridesharing applications like Uber, Lyft; Autopilot in commercial flights; Google’s AI- Powered predictions are few examples that show that AI is coming for us all. In professional services, it has already been used for document acceptance, management, and maintenance.
The future of the professional services industry seems quite promising. The industry is going to be radically different in 10 years. You may expect to see more transparency, improvement in the quality of services and more use of A.I.
Rapid changes in clients' demands and expectations will impact working of businesses and they will hire professional services to survive in the industry.