Prime Advantage Advisory

Prime Advantage Advisory

Professional Services

Professional ServicesProfessional Services – Sector Overview

The financial and professional services industry makes a vital contribution to the UK economy, providing employment for over 2 million people. Many of the services it provides are essential to day-to-day life and others support our nation’s businesses as they market products and services across the globe and maintain a competitive advantage. Professional services are essential to the UK economy, accounting for 15% of GDP and 14% of all exports.

The proliferation of professional services provides a range of opportunities to the sector that have the ability to develop business revenue and profitability. One trend across the industry is the collaboration of professional services businesses to form consortia that can deliver added value to both individual Clients and the wider Client base. Such opportunities for collaboration are contingent on good relationships between Partner companies and between internal sales and marketing functions.

Increasingly, buyers are seeking firms online, prior to initial contact, and as such the industry is being challenged to raise its game in the marketing field. Websites, advertising, branding and reach are all key measurements in the strategic development of firms. Additionally, the market is becoming saturated with a large proportion of independently-owned startups and SMEs operating in this space, recognising that the potential to make money is high. Differentiation and competitive advantage are key to gaining traction in the market, so companies must find ways to present a unique proposition.

Security in business also poses a risk to firms as the assets for sale are often people-based and losing staff can damage both the ability of the firm to provide the services as well as risking a Client base that may travel with individual team members. Profitability is also a challenge given that economies of scale in professional services businesses are extremely difficulty to achieve.

Professional Services Sector Expert

Greg Tufnell Managing PartnerGreg Tufnell

To find out more about Greg’s views and insights on the Professional Services Sector read his blog.