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        Professional Services Sector Industry Profile

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        Excerpt from Professional Services Sector Industry Profile

        Firms in this industry provide accounting, advertising and marketing, architectural, consulting, engineering, IT, legal, and scientific research services. Major firms include US-based AECOM, Bechtel, DXC, IBM, IQVIA, Jacobs, Latham & Watkins, McKinsey & Company, and Omnicom, as well as Accenture (Ireland), Capgemini (France), Deloitte Touche Tohmatsu (UK), PricewaterhouseCoopers (UK), and WPP (UK).

        The US, UK, and Nordic markets are the largest markets for professional services, followed by continental European markets such as France and Germany, while Asian markets fall in the average, according to Source Global Research.

        The US professional services industry includes about 910,000 establishments (single-location firms and units of multi-location firms) with combined annual revenue of about $1.8 trillion.

        COMPETITIVE LANDSCAPE

        Professional services providers face a number of challenges, from dependence on corporate spending and trends in the global economy to customers or potential customers choosing to do the work themselves. While the average business may not decide to in-source architectural plans for a new office, accounting, marketing, and IT services can all be brought in-house and often are.

        Large companies are better positioned to win national accounts. Small companies can compete effectively by offering highly specialized services or focusing on a single geographic region or local market; they typically also have less overhead, which allows them to charge less. The US industry is highly fragmented: the 50 largest firms account for less than 20% of revenue.

        Competitive Advantages:

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