The sector’s index score of 117 (normalised to the base year of FY19 = 100) remained unchanged from the previous year, reflecting overall resilience, as well as the mixed performance across individual performance dimensions. Growth and productivity dimensions saw improvements whereas cash flow witness a declined.
Sector performance
Professional Services sector performance, by dimension, is as follows:
- Growth: Resilient interest in core propositions, coupled with growing appetite for digital services, supported sector growth. This momentum is expected to persist as organisations worldwide adopt digital solutions to enhance competitiveness.
- Profitability: Gross margins remained stable year-over-year, as increased costs from wage inflation and headcount expansion were offset by pricing adjustments. EBIT margins also held steady, as SG&A and technology-expenses grew in line with revenues.
- Productivity: Global delivery capabilities along with growing integration of digital tools supported gains in productivity. Firms have also begun adopting GenAI to automate routine tasks and enhance other workstreams, with the potential to further improve workforce efficiency over time.
- Cash Flow: The quick ratio declined slightly, as firms utilised cash reserves for strategic investments in AI and data capabilities. However, operating cash flow ratios remained stable, with increased liabilities from tech investments balanced by stronger earnings-driven cash flows.
Priorities for success
As firms scale their digital offerings, competition for skilled talent has intensified. Additionally, the rapid pace of innovation and ongoing economic uncertainty present persistent challenges. To sustain growth in this evolving landscape, firms are focusing on reinventing delivery models, enhancing digital capabilities, and recalibrating their talent strategies.
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
