D&E includes providers of learning and upskilling services and specialised data companies. The sector’s index score is 124 (normalised to the base year of FY19 = 100), up from last year’s 119, primarily attributable to favourable developments in the growth and profitability dimensions.
Sector performance
Digital and education services sector performance, by dimension, is as follows:
- Growth: Digital-first companies saw revenue growth, particularly from AI-driven solutions that allowed them to better compete with tech players offering more generic services. In contrast, firms dependent on legacy offerings saw declines.
- Profitability: A favourable mix of higher-margin digital offerings strengthened gross margins, while automation of support functions and workforce optimisation further improved bottom-line profitability.
- Productivity: Efforts to optimise workforce in non-core, support functions led to efficiency gains. Anticipating further gains, firms have also started deploying AI tools to automate workflows and improve workforce productivity.
- Cash Flow: Operating cash flow ratios have improved due to strong revenue and profit growth, though they were partially offset by increased liabilities from geographic expansion and new cloud and AI offerings. Meanwhile, healthy quick ratios indicate parallel increases in current assets and liabilities.
Priorities for success
Digital services and education providers have swiftly pivoted to offer AI-enabled solutions, allowing them to better compete with technology companies offering more generalised AI solutions. In parallel, firms have begun deploying inward-facing AI tools to automate workflows and boosting productivity. As the sector evolves, companies must continue to adapt their operations to leverage new technologies, explore new markets, and meet changing client demands to maintain their competitive edge.
How do you compare?
Use the simple interactive comparison tool below to map your company’s key metrics against sector peers. The tool offers a sliding scale to provide approximations for two of the four dimensions (i.e. growth and profitability) used in the creation of the annual GBSI.
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About the author(s)
Global Business Services Index 2025
An annual outside-in view of the Business Services Industry and its performance across 8 key sectors
