Professional services firms are one of the biggest players in today’s workforce. What are professional services? This category spans auditing, accounting, tax advisory, legal, insurance, and consulting.
According to a professional services forecast, personal consumption expenditures on professional services are forecast to reach $600 billion in 2023, rising at a 2.9% rate from $521 billion in 2018.
However, the professional services industry will likely be far different in just a few years. Technology plays a pivotal role in how these firms will compete, adapt, and remain relevant in the market.
Here are 6 ways that professional service firms can change the marketplace for the better:
Find and retain top talent
The corporate culture is evolving now that five generations of employees have entered the workforce. Different generations have different values and goals when it comes to work. Older generations put work first and want to succeed by climbing the corporate ladder. Younger generations, such as Gen Y and Gen Z, are more interested in working remotely and having a more balanced work-life experience.
One solution is to create a hybrid workforce with full-time employees and independent consultants who may work in the office or from a virtual home office. In addition, companies are upskilling and reskilling employees to keep up with new technologies and changes in how clients want to be treated.
Keep pace with changes in buyer purchasing
Today’s buyers are much more savvy. They do their homework. They go online and research firms, check out customer reviews, join discussions on social media, and find non-traditional channels to learn more about the top consulting firms.
In the past, clients felt like they had to do what their consultant told them to do. But clients now know they have the power to choose the best firm that fits their needs. They may even go so far as to expect service providers to create solutions that are tailored to their specifications. Services purchased “a la carte” are attracting many supporters. It offers the ability to choose different providers for different tasks and then combine their unique expertise to create a custom solution.
Manage the customer experience
Clients are putting pressure on professional services firms to reduce costs and provide more benefits. Traditionally, these contracts are billed on an hourly basis. The difference between the rate charged to clients and the cost the company incurs are how the firms make their profit. Companies that are opting to price their services on the actual rather than the perceived value is growing, due to customer demand.
Clients are seeking innovative and more cost-effective solutions. They are demanding more transparency and empowerment. At the same time, they want speed, agility, and a willingness to adapt to the changing times. That means that smaller consulting services are able to fill a niche — with agile pricing and new innovations in service models.
Cater technology to clients
The clients of the future want technology. They want to use technology and automation for obtaining services and knowledge. Everything is pointing to the fact that technology will significantly change the way we use professional services. It will also provide new ways of organizing and providing professional services to your customers. New technologies might seem like a threat, but smart firms will create opportunities to redesign and streamline how they conduct business with clients.
Research shows that professional services firms who have a high degree of internal productivity can capture a larger portion of the market share. By focusing on the workforce, professional services firms can ramp up productivity by using modern technology to automate certain tasks, such as timesheet and expense reports.
Digital transformation is no longer an option
A mobile app can help you reduce downtime for employees, create a more connected work environment, and even meet compliance and regulatory demands. Professional services firms offer as many as 50 to 100 or more product and service solutions. By using a no code, custom branded app, firms can digitize all of their materials so the organization has a “single source of truth” and all employees can access this information on their smartphone or tablet.
The professional services industry is evolving to catch up with new technologies that will, in turn, create new opportunities to interact with clients. There is also an opportunity for professional services firms to revamp the marketplace and digitize their brand and services to create a new, better business model.
At CatalystXL, we want to help you quickly and easily share information and foster collaboration across your entire organization. We can deliver a no code, custom branded app that unlocks answers and provides insights via our Cardware platform — sharing categorized content in a powerful flashcard format. Our mobile app fosters a community of collaboration, engagement, and connectedness for your employees – both in and out of the office.
Book a demo with CatalystXL.