Professional Services Sector

Professional Services Sector

Brief Excerpt from Industry Overview Chapter:

Firms in this industry provide accounting, advertising and marketing, architectural, consulting, engineering, IT, legal, and scientific research services. Major firms include US-based Computer Sciences Corporation; Gensler; IBM; Jacobs Engineering Group; Omnicom; PricewaterhouseCoopers; Skadden, Arps, Slate, Meagher & Flom; as well as Accenture (Ireland); Capgemini Group (France); and WorleyParsons (Australia).

Global annual revenue from consulting services, advertising and marketing services, engineering services, and accounting services alone totals nearly $2 trillion. The US and the EU are the largest markets, although firms are expanding in emerging economies such as Brazil, Russia, India, and China.

The US professional services industry includes about 770,000 firms with combined annual revenue of more than $1 trillion and is expected to grow at a moderate rate over the next two years. Key growth drivers include regulatory complexities, more corporate outsourcing, and international firm expansions.

The professional services industry does not include insurance, securities, or real estate brokerage services.

COMPETITIVE LANDSCAPE

Demand is driven by corporate profits and the overall health of the US economy. Although some professional services are necessary for the normal functioning of most companies, many services can be postponed during economic downturns. The profitability of individual firms depends on having a regular flow of projects. Large firms have advantages in marketing and in being able to offer wider ranges of services to meet the needs of major clients. Small firms can compete successfully by offering special expertise or focusing on particular regions. The industry...