2024 marked a significant turning point for the professional services industry. Notable steps were taken with technology and the use of AI. Client expectations and the nature of the services workforce changed along the way. 

Professional services firms that have opened their arms to new working methods are set up for success. Meanwhile, those sticking to outdated methods are struggling to keep up. 

As we close the books in 2024, we’ve examined the state of professional services. This blog will update you on key trends, future opportunities, and challenges as we head into 2025.

What Is the Professional Services Sector? 

The professional services sector comprises businesses that offer specialized expertise to clients. These professional services organizations help businesses solve problems and improve their operations. 

The sector includes fields like:

• Accounting handles finances, manages budgets, and ensures audits are done accurately.
• Legal support offers advice and representation in legal matters, from contracts to disputes.
• Marketing manages branding, advertising, and promotions to attract and keep customers.
• Consulting supports businesses with strategy development and performance improvement.
• IT services provide solutions to clients looking for a combination of software and managed services support.
• Architecture designs buildings and infrastructure, ensuring they are functional and meet regulations.

These services are built around customer experiences. Their MO is to deliver a service and solution that helps customers and businesses grow.

How Did Professional Services Perform in 2024?

Professional services grew strongly in 2024. Statista found that global revenue was expected to hit $72.61 billion, with a compound annual growth rate of 5.62%. The U.S. led the growth of this industry, with a projected growth of $34.43 billion.

Business/management consulting and IT consulting took the lion’s share in the Americas, EMEA, and Asia-Pacific. These services showed strong, consistent demand across regions. Smaller areas like staff augmentation and subscription services played a steady but smaller role

Despite this growth, TSIA reports that 60% of professional services organizations still missed the optimized PS maturity quadrant. 

This quadrant is part of the PS Maturity Model created by SPI in 2007. This model helps organizations measure and improve their performance. Over 50,000 service—and project-focused organizations use it.

The model focuses on five areas:

• Leadership that gets everyone on the same page.
• Building client trust that lasts.
• Attracting and retaining top performers.
• Delivering high-quality results every time.
• Keeping the numbers solid and processes efficient.

With 2025 underway, many organizations still fail to align strategies with financial goals. Firms are leaving money on the table without a clear process, and this gap has only slowed growth across the industry.

Key 2024 Labor Trends for Professional Services

The professional services industry faced challenges in 2024, compounded by workforce instability, a common theme in many other sectors. 

The U.S. Bureau of Labor Statistics found job openings surged in October, showing a clear demand for talent. At the same time, hiring stayed flat, and separations continued to outpace new hires. Unemployment rates increased, which points to a workforce in flux.

These trends highlight growing volatility in professional services compared to the steadier national labor market in the U.S. 

Demand for skilled talent is rising, but inconsistent hiring and high turnover are still challenges. Meanwhile, the broader U.S. labor market holds steady with slower hiring, a relatively stable national unemployment rate and more worker movement.

Professional Services Industry Trends

Professional services firms had a strong year in 2024 despite their challenges. Firms using AI, machine learning, automation, and cloud-based solutions saw impressive gains. With these new opportunities, the industry continued to move forward. 

AI in Professional Services

McKinsey reports that professional services led to generative AI adoption in 2024. Alongside energy and materials, this industry reported the most significant increase in AI use. 

AI has had an impact industry-wide. It has made its mark in consulting, auditing, legal services, and accounting, where it has reshaped service delivery and fee structures. Thomson Reuters, for instance, found that 81% of legal professionals saw real potential for AI, especially in law and corporate risk management. AI is here to stay in 2025.

However, that doesn’t mean AI didn’t come with its challenges in 2024. Concerns like data privacy, algorithmic bias, and job displacement were raised. Businesses need a strong ethical framework to ensure AI is used responsibly. 

On top of that, many organizations weren’t fully equipped to leverage the benefits of AI. Data silos were another issue, with 80% of IT leaders citing them as a significant concern. 

Research also shows that in 2025, uncoordinated AI adoption could create a ‘market for lemons.’ This would lower service quality and make it harder for clients to differentiate between professional and AI-generated advice. The bottom line is that these challenges need to be addressed for AI to reach its full potential.

Collaboration Across Service Lines

Organizational convergence pushed professional services organizations to combine their service lines in 2024. About 20% of firms have cross-functional sales support teams, and this number is expected to climb as this trend increases in 2025. 

The goal is to improve collaboration between different parts of the business. AI and operational efficiencies are making this happen easier. Organizations adopting these changes are now better positioned to deliver more connected, customer-focused services in the coming year. 

M&A Activity & Strategy

Mergers and acquisitions were still a key business strategy in professional services in 2024. And those who made the right moves are positioned for growth in 2025. 

As KPMG highlights, companies like Kelly Services and Resources Connection have made strides in the technology and education sectors. Meanwhile, professional services firms like AMN Healthcare and Robert Half focused on organic growth and digital transformation. 

Digital Transformation

Digital adoption gained ground in 2024 across the board. And it will continue to. Salesforce mentions that within the next three years, more than a third of professional services firms expect 75% or more of their revenue to come from digital channels. This is a big jump from just 9% in 2019.

In 2024, decision-makers in professional services showed they were ready to invest in the right technology and improve their core systems. 46.5% of firms said it was a priority. 

However, the challenge was finding the right solutions. The market is crowded, and it can be confusing to understand what your firm needs. Fortunately, tools like Upland PSA stand out from the crowd. They’re easy to implement, built for organizational efficiency, and have a solid track record.

Flexibility

In 2024, flexibility was no longer an option. Professional services employees expected it, clients required it, and investors sought it.

Now that we’re in 2025, it’s clear that high-level talent wants flexible work arrangements. Clients will also expect faster, more flexible services and won’t wait for firms to catch up. They want advisors available outside traditional billable hours and across multiple platforms. 

Professional services firms must invest in tools like Upland PSA to meet these demands. These tools help firms stay quick on their feet, which keeps talent and clients happy. 

Sustainability, Climate Change, and ESG

Clients are serious about reducing their environmental footprint and look to professional services firms for guidance. This shift impacts some sectors more than others, such as manufacturing, where costs and governance around ethical supply chains must be managed closely. 

In 2024, sustainability began playing a more significant role in professional services. Stricter regulations like the EU’s CSRD and SEC updates drove demand for ESG expertise. Thanks to ISSB-aligned standards, ESG reporting could become more manageable in 2025. 

AI will also play a more significant role by helping businesses optimize resources and improve supply chain transparency. Meanwhile, human rights due diligence will move to the forefront in response to growing global expectations. 

The race for ESG talent will stay fierce in 2025, with firms doubling down on training and hiring. Professional services will keep businesses ahead.

What Were the Top Professional Services in 2024?

When looking at the top professional services in 2024, key areas like tech consulting, marketing, business management consulting, legal services, and HR consulting continued to dominate. These fields represent the core of knowledge-based services that businesses rely on.

Technology Consulting and IT Services

Revenue in the IT consulting and implementation market is set to grow by $18.1 billion between 2024 and 2029, an increase of 24.17%. It’s also expected to hit an impressive $92.95 billion by 2029. This steady growth shows that IT consultants are in high demand as more businesses go digital.

The tech industry has faced some challenges in the last few years, too, with inflation, high interest rates, and global uncertainty. But optimism is building for 2025. Professional services growth is expected from AI, cloud computing, and cybersecurity. IT consultants will help businesses roll out these technologies safely, ensuring everything’s in place.

Looking ahead, Deloitte suggests tech leaders focus on improving supply chain resilience. They can do this via intelligent automation and modernizing legacy systems with cloud solutions. As AI, RPA, and cybersecurity grow, firms with expertise in these areas will be ready to lead.

Business and Management Consulting

The business and management consulting sector increased in 2024, especially in North America and Europe. The management consulting market grew from $396.23 billion in 2023 to $442.55 billion in 2024. It’s also expected to grow at 11.94%, reaching $872.75 billion by 2030.

Last year, the global consulting market hit nearly $1.8 trillion, with financial and strategic services making up most of the revenue. Over the past five years, the industry has grown at an annual rate of 3.5%. It was expected to reach $1.0 trillion in 2024.

North America leads the market, with the US expected to reach $82.28 billion by 2029. The Big Four—Deloitte, EY, PwC, and KPMG—led the pack, with a combined revenue of almost $100 billion in the U.S. alone.

Consultants are in high demand, and the need for expert guidance and advice keeps growing. As a result, salaries for consultants with advanced degrees are taking off. The consulting industry shows no signs of slowing down and will remain a key driver of the global economy in 2025.

Legal Services

Statista reported the global legal market was worth $790 billion in 2024, with law firms in developed countries leading the way. They turned to legal technology to cut costs and simplify processes.

The rising demand for data privacy and cybersecurity expertise drove this growth. Law firms expanded their focus on data protection, compliance, and risk management as businesses faced increased regulatory pressure and cyber threats.

Some law firms went all-in. They set up dedicated cybersecurity practice groups to better serve clients through these challenges. This shift highlighted how essential legal advisors are in helping businesses manage data governance, especially in sensitive sectors like healthcare, finance, and technology.

The legal startup market also drove growth in 2024 and is expected to keep growing. Statista highlights that revenues are projected to hit $6.7 billion by 2027. This market growth shows the growing need for technology that simplifies and optimizes legal processes.

Technology adoption in law firms has increased since the 2008 financial crisis and the pandemic. Today, law firms and corporate legal departments use AI to automate contract analysis, data entry, and compliance checks.

Human Resources Consulting

The global human resource consulting market is set to grow from $73.75 billion in 2024 to $104.02 billion by 2029, with a CAGR of 7.12%.

The U.S. industry, however, showed more gradual growth, with a 0.4% CAGR from 2019 to 2024. However, it’s expected to pick up in the next few years. While onboarding new hires remains challenging, the U.S. economy is shifting towards services. Learning and development are also picking up.

IBIS shows that some of the top HR consulting companies in the U.S. include Deloitte, which reported $2,314.5 million in revenue; Aon Plc, with $2,219.3 million; and Willis Towers Watson Plc, with $1,713.7 million—all figures in USD.

The sector experienced mixed results in 2024. KPMG found that Kelly Services and Korn Ferry did better than expected, while AMN Healthcare saw a sharp drop in earnings. It also found that professional services firms focusing on organic growth and digital innovation are in a strong position to handle oncoming challenges in the professional services market.

Was There Career Growth in Professional Services in 2024?

The future of talent and career growth in professional services looks bright. Skilled workers are in high demand as firms adopt new technologies. AI and automation are creating new roles for talent, like AI specialists, data analysts, and machine learning engineers.

Remote setups and flexible schedules are also reshaping career paths. Employees want better work-life balance, and firms offer growth opportunities for employee skills without requiring time in the office.

How Many Jobs Are Available in Professional Services?

Data from the BLS shows that in September 2024, there were 1.53 million job openings in the professional and business services sector.

This includes fields like professional, scientific, and technical services, as well as management and administrative services. The demand for top talent in these areas was strong, and plenty of new opportunities remain in 2025. 

What’s in Store for 2025?

The professional services industry will undergo some changes in 2025. Global revenue is expected to hit $72.61 billion in 2024 and rise to $95.44 billion by 2029. The demand for professional services isn’t going anywhere anytime soon.

Data, talent, and technology will be the key drivers of growth and profitability. And firms that understand how to rely on big data and AI will lead the way. 

Here are some stats to take note of, shared by Salesforce and KPMG:

• 70% of companies plan to expand their AI use over the next two years. 
• About 62% expect to increase their AI investment in 2025, while 38% will maintain their current spending. Generative AI remains a key priority for many organizations.
• 67% of IT leaders plan to use generative AI to support new business models.
• 41% of firms consider artificial intelligence for recommendations and 37% for anomaly detection.

And as these technologies become part of everyday operations, CFOs are looking closer at professional services teams. They want services to bring in profits, not just cover their costs. 

They focus on costs, margins, and team performance, working to find and fix gaps that could slow progress. The goal is to make sure services actively drive business growth.

Intelligent automation is also changing how firms manage resources. It’s allowing professionals to focus on higher-value tasks while AI takes care of the routine ones. And this will become even more commonplace as AI and machine learning become more embedded in daily operations.

This shift equips CFOs to analyze real-time data and manage costs effectively, improving overall efficiency. With tighter margins, advanced resource management and forecasting tools — like Upland PSA — help firms stay on top of things. These tools align staffing with demand and avoid costly inefficiencies that can derail operations.

Unified data systems offer another way forward in professional services. Firms with unified data and integrated systems have better cross-functional collaboration and operations between finance, HR, and IT. Upland PSA’s integration capabilities help professional services teams get more value from existing enterprise systems to keep data consistent across projects, resources and financials.

Firms that adopt digital transformation and cloud tools are ahead of the pack. They deliver faster, more cost-effective solutions with real-time data and AI insights. They’re also building stronger, stickier client relationships, and that momentum will only accelerate by 2025. Firms that adopt these technologies will be set to handle whatever comes their way.

Step Into 2025 with Upland PSA

The professional services industry is changing fast, and it’s time to keep up. Unfortunately, far too many firms are struggling to adopt PSA solutions. Many organizations struggle with in-house expertise, making it difficult to choose the right solutions. Fear of change and uncertainty about what to purchase also often hold them back.

These challenges are common, but the right solution can turn things around for your future projects. Upland PSA offers a central hub for your projects to easily track resources, costs, and progress. It removes the guesswork out of professional services. Time and expenses are simplified. Your resource and financial management needs are covered. 

On top of that, there’s no need to worry about integrations—Upland PSA connects with the best enterprise software products. Ready to stay ahead in 2025? Let Upland PSA help you get there. Book a demo today.