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Professional services firms are navigating 2025 under pressure. Fewer hires, strong competition, and the increasing influence of AI are redefining the way businesses in this space operate - and making them reassess their priorities.
Our 2025 State of Professional Services report provides a data-driven analysis of current professional services industry trends. Based on responses from over 1,000 business leaders, operations teams, project managers, and individual contributors across a wide range sectors, this report explores the challenges, priorities, and strategies shaping professional services today.
The 5 pressure points shaping professional
services in 2025
1. Inefficient internal processes are slowing down growth
We found that 41% of firms are focused on acquiring new business. While the majority are confident in their core delivery processes, firms are seeking to streamline internal processes, particularly around time tracking, billing, and resource management. This push towards greater efficiency reflects the need to sustain profitability and meet increasing client expectations without overburdening staff.
2. Most firms still can’t forecast resources accurately
Despite appreciating its strategic importance, only 20% of respondents report having a sophisticated forecasting process, citing limitations in data accuracy, integration, or process maturity. As a result, leadership, operations, and teams often find themselves reacting to capacity needs rather than planning proactively.
3. Profit targets are set, but only 1 in 5 firms actually hit them
While 57% of firms have a defined profit margin target for projects, only 20% hit it almost every time. Across roles, we noted a shared goal of maximizing billable hours to boost profitability. While utilization rates are already high for many firms, a substantial number are still actively trying to increase them.
4. Culture is key to retain talent, but most firms aren’t tracking what’s working
Hiring plans for the year are cautious, with 76% of companies either not planning to hire or only seeking to fill key gaps. The leaders surveyed indicated that culture is integral to the success of their business, but while 87% of respondents felt positive about their company culture, only 53% of firms regularly tracked employee satisfaction. Given the current hiring climate, it is crucial for companies to invest in (and track) employee experience to retain the right talent.
5. Over half of firms are still chasing late payments
Nearly 56% of respondents experience either frequent or occasional payment delays. The reasons touch both on operations (with 35% of respondents wanting to further automate their invoicing) and client relations (30% struggle to get clients to pay on time) and demonstrate a need to improve internal processes and implement stricter payment policies.
Who we surveyed
To gain deeper insight into the professional services industry, we surveyed 1,010 respondents, including leaders, operations leads, finance managers, project managers, and individual contributors. Participants worked across industries such as accounting, architecture, consulting, design, education, engineering, healthcare, legal, nonprofits, software, and engineering.
The survey asked questions on focus areas like strategy, project operations, profitability, forecasting, billing, time tracking, and company culture. Responses highlighted what firms are doing well, where they’re running into challenges, and where they see opportunities for growth and improvement.
What you’ll learn inside the report
- Professional services trends driving strategic priorities – Learn how firms are balancing client acquisition with operational efficiency challenges to achieve scalable growth.
- Deep dives into industry challenges – Explore pain points around resource forecasting, operational efficiency, capacity planning, and billing and payments.
- Data on key metrics like profitability and utilization – Gain insights into how firms are measuring profitability and utilization, and whether they’re meeting their goals.
- Recommendations to stay ahead in 2025 – Get actionable steps that firms can take to improve efficiency and maintain long term sustainability.
Get the full report to stay ahead in 2025
The future of professional services is increasingly complex, but this report provides businesses with key data and insights to stay ahead. Download the 2025 State of Professional Services report today to uncover what leading firms are focusing on, and how you can stay competitive.
