As of today, it is quite unlikely that professional services firms will dial back on their technology investments – instead, we even see increasing technology investments in order to keep up with a faster evolving competitive landscape. Gartner predicts an annual growth of 5 to 15% for the technology spend of professional services firms – even factoring in the steadily decreasing unit costs for many technologies (e.g., storage, processing, etc.). As firms work through the selection, implementation and adoption of more and more systems and tools, it is obvious that there is barely a true alternative to a “cloud first” strategy.
In order to unlock scalable growth, professional services firms must shift management attention from dividend payouts to firm value – a fundamental and necessary shift in the financial management mindset of Professional Service Firms (PSFs).
Traditional business models for professional services are about to expire.
Both established and new players venture into new ways of delivering tangible value to clients and finding smarter ways to charge clients for their work – or rather: the value delivered.