Digital transformation isn’t new to the professional business services space, but experts agree that this trend is not only here to stay — it’s going to lead the future. The pandemic played a role in escalating the rate at which professional services firms adopted technology and embraced automation.
Professional services are rooted in fulfilling the needs of the client. Previously, many professional service firms were able to rely on face-to-face client meetings and in-person interactions. But today, clients want the best bang for their buck and may even need to cut down on non-essential spending as a result of the pandemic. That means professional services firms need to rethink their service offerings to better suit clients’ needs.
The professional services industry is already paving the way toward changes in hiring. Companies like Salesforce and Dropbox have announced a flexible, new way of working, which opens the door for hiring talent across the globe — even in locations outside of office headquarters.
*According to Wrike’s Professional Service Trends to Look Out for in 2021
FCL Industry Coverage
- Construction and Engineering
- Consulting Services
- Legal Services
- Media and Information Services
Despite the slowdown in Q3 and Q4 of 2020, M&A activity in the sector has recovered in the first three quarters of 2021, showing a 26% increase in the number of deals closed in Q3 of 2021 compared to 2020. Looking at the year 2021 in total, there was a 5% decrease in the number of deals closed, compared to 2020. A slightly decreasing trend can be observed, with the number of deals in Q1 of 2022 being 23% less than Q1 of 2021, making it the lowest in the last 5 quarters. Venture Capital buyers were the most active investors in Q1 of 2022 representing 50.9% of the total deals closed.