Technology is moving to the center of attention across professional and business services – and firms are spending more and more, not just absolutely but also relative to their revenue. If solely treated as a cost position, it becomes a race to the bottom. Instead, if considered a revenue driver and managed as an integral part of your firm’s P&L, technology paves the way for new business models, growth, and profitability.
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.
An unlikely new key player within ProfessionalServiceFirms is slowly crawling into the spotlight: Procurement.
This often immature function and role, which until today has mostly dwelled in the back-office, administrative shadows of knowledge-based firms, is evolving as cornerstone of strategy execution for lawfirms, consulting, accounting, or marketing service providers. Why? Well, read my article on this emerging topic.