How Globalized Competition Is Rapidly Changing Professional Services
This is an excerpt from the new Kantata ebook, “The 5 Biggest Forces of Change in Professional Services Today.” To learn more about the major currents reshaping the professional services world and how you can effectively respond, check out the full ebook here.
The professional services industry has undergone significant change, driven by a wide range of internal and external factors. Emerging technology solutions have led to new ways of working at every level—individual, team, and organizational. Far-reaching economic forces and increased globalization have allowed professional services companies access to a wider range of clients than ever before. And changes to both employee needs and customer expectations due to wider cultural and technological shifts have also impacted people-powered businesses.
Change always brings challenges. Powerful forces shaping the industry affect everything from work processes and resource pools to project strategies and margins. The market is growing and becoming more competitive, even as recession fears rise, putting pressure on businesses to act faster than ever to improve their processes, retain their best resources, and be resilient to weather the challenges coming their way. Keeping up with ever-changing technology advances can be daunting. And resource management is becoming increasingly complex as firms tap into distributed talent pools and remote work becomes the new normal.
However, accommodating change and adopting new processes also opens businesses up to new opportunities. The after-effects of the global pandemic have only heightened the urgency for professional services organizations to embrace new ways of operating. It’s time to keep up, or get left behind.
The Effects of Globalized Competition
The professional services landscape has changed drastically as a result of digitization—not just the way we do things, but the market itself. Whereas 10 years ago opportunity was limited by physical location, today, firms around the world can compete for the same projects because everything from estimating to delivery is now done digitally.
This opens up new opportunities for professional services providers, but it also introduces new challenges. You’re no longer just trying to outbid the firms in your area. Now you have to outbid and outperform competition across the globe. At the same time, technological advances have allowed new players to enter the field, including many from emerging markets, increasing the competition even more – according to The Business Research Company, “The global professional services market size is expected to reach $7.06 trillion in 2025 at a compound annual growth rate (CAGR) of 7%.”
Putting It Into Practice
To effectively compete and maintain growth and stability in the new global market, firms need to lean in to change. Adopt new technology and connect your existing systems to gain visibility and power true agility at scale.
Replace legacy processes with new, smarter ways to work. Use the power of AI, machine learning, and automation to gain granular insight, and apply it to improve profitability. Embrace the virtual office, distributed talent networks, and globalization. Align your core strategies to the new normal. Target new markets and a wider range of clients.
Make The Most of Industry-Wide Change
The professional services industry is undergoing significant changes, affecting everything from what team members expect from your company to how other businesses in your market are competing for clients. Change can be scary, but by understanding it and responding in an educated, effective manner, you can find new ways to succeed. Learn more in our new ebook, “The 5 Biggest Forces of Change in Professional Services Today.”