Digital Transformation a Top Ambition
The article highlights several key points about the growth, challenges, and technological investments in professional services firms:
- reported on digit.fyi
Key Findings:
- Optimism and Growth:
- 84% of project-based businesses expect increased profits in 2024, up from 71% in 2023.
- Challenges:
- Increasing profitability is a top challenge for 38% of firms.
- Other challenges include reducing expenses (29%), timely hour registration (27%), and cost control (26%).
- Project complexity is a concern for 28% of firms.
- Investment in Technology:
- 67% of firms believe they will lose market share if they don't make significant progress in digital transformation.
- 79% of firms plan to increase investment in emerging technologies compared to the previous year.
- 29% plan to invest significantly more.
- Artificial Intelligence (AI):
- 98% of firms use traditional AI/machine learning (ML), and 97% use generative AI.
- 74% believe investing in AI will expand services offered.
- 41% believe successful AI implementation will increase profits.
- 74% see AI as providing a significant competitive advantage.
- 75% are concerned about competitors implementing technology faster.
- Project Management Challenges:
- 87% of firms rely on manual data entry.
- Key challenges include managing deliverable quality (46%) and project collaboration (42%).
- KPI tracking has decreased in areas like client satisfaction (8% decline) and average billing rate (14% decline) in 2024 compared to 2023.
- Workforce and Upskilling:
- 27% see upskilling staff as a top challenge for project management in the next three years.
- 61% of firms plan to increase workforce size in 2024.
- 72% believe successful AI implementation will improve job satisfaction.