The services industry is a key contributor to global economic activity, pivoting across sectors such as consulting, facilities management, business process outsourcing (BPO) and others. It supports the backbone of modern business operations, ensuring that companies can operate efficiently and focus on core activities.
While post-pandemic recovery has been challenging, the global services sector stands on the verge of notable growth. A study predicts that the global business services market is set to achieve a compound annual growth rate (CAGR) of 21% from 2023 to 2032. In 2023, the market was estimated to be valued at USD 203.7 Billion, projected to reach USD 13.8 trillion by 2032.
The EMEA region shows promise for development within the service sector, though it faces numerous challenges. Governments in Middle Eastern countries are supporting technological progress in data, AI, cybersecurity, and digital transformation. This places the Middle East in an especially beneficial position where they may place themselves as frontrunners in the race toward technological progress but provides businesses with a significant challenge to adjust to continuous market disruptions.
Regarding Europe, countries within the region are primarily focusing on sustainable practice that could reshape the services sector. The EU’s Green Deal promises to deliver transformation within multiple industries through investments in renewable energy, circular economies, and sustainable business practices. However, the EU’s economies are faced with challenges such as labour shortages and increasing operational costs, which are causing businesses to struggle to implement these new measures if they wish to be risk-averse.
To help companies navigate these uncertainties, ValuStrat offers tailored service industry consulting services designed to optimise operations, embrace innovation, and seize new opportunities. ValuStrat’s comprehensive services industry consulting expertise includes:
- Strategic advisory: Guiding service providers through digital transformation, regulatory changes, and sustainability goals. We help optimise operations and develop growth strategies that align with industry shifts like automation and AI.
- Valuations: Delivering accurate valuations for service-based businesses and intangible assets, crucial for mergers, acquisitions, and capital allocation, particularly in consulting, outsourcing, and facilities management.
- Due diligence: Providing thorough risk assessments for mergers and partnerships, identifying financial, operational, and compliance risks unique to service transactions.
- Market research: Offering insights into trends like automation and outsourcing demand, helping companies navigate competitive pressures and emerging opportunities across sectors like BPO and facilities management.
- Transaction advisory: Supporting complex transactions such as outsourcing agreements and joint ventures, ensuring deals are structured to maximise value and minimise operational risks.
- Business process optimisation: Streamlining operations and enhancing service delivery through automation and digital tools, particularly in facilities management and BPO, to reduce costs and improve efficiency.
- Industrial consulting: Specialising in optimising large-scale operations, from logistics to facilities management, focusing on sustainability and tech-driven efficiency.
Sustainability, digital innovation, and enhancements in operational facilities are moulding the path toward a new form of operations within the industry. Technologies like AI and blockchain are making their way into fundamental parts of service delivery and improving upon previously established methods. Moreover, predictive analytics, machine learning, and cloud-based solutions enable businesses to respond faster to rapidly changing market conditions. With Europe leading the way for sustainability, companies will certainly have to make new considerations and implementations to ensure they maintain long-term viability and include circular economy and carbon-neutral solutions in their operations.
In the EMEA region, businesses must stay ahead of evolving regulatory frameworks. This involves embracing Robotic Process Automation (RPA) to streamline repetitive tasks and integrate Internet of Things (IoT) solutions for enhanced operational monitoring. On the customer experience side, AI-powered chatbots, virtual collaboration platforms, and intelligent contract systems will enhance efficiency and improve the overall experience. Those who are willing to adopt these methods will ensure their place within the industry and thrive among the competition.
