Business services (including professional services) represents one of the largest sectors of the global economy. Within the industry, the overall value proposition for outsourcing non-core business activities continues to gain momentum, driving growth and M&A opportunities across a wide range of subsectors. Businesses of all types have become increasingly aware of the advantages of focusing on their core expertise and relying on third-party specialists for everything else. Beyond capacity, businesses that outsource non-core activities gain access to more current and in-depth knowledge than they would typically possess themselves.

Key trends such as digitalisation represents both the biggest opportunity and challenge for many services businesses. Businesses can benefit from efficiencies in automating time-consuming processes, leaving professional staff free to better use their time and expertise to add value for clients. On the other hand, those that are too slow to adapt face falling victim to the many tech disruptor businesses that are making a success of meeting changing customer demands.

There is plenty of good commercial work to support the sector in 2024, but we would be cautious not to ignore a potential recessionary backdrop.