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Ebook
The State of Professional Services 2026
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February 11, 2026
Overview
Challenges
Most PS organizations know they need scalable, outcome-oriented PS 2.0 delivery, but they’re trying to build it on PS 1.0 foundations with manual processes, fragmented systems, and inconsistent methods. AI doesn’t fix these gaps; it amplifies them—stalling scale, margin expansion, and predictable outcomes.
Summary
Professional services is at an inflection point: AI is rewriting how value is created, priced, and delivered, and PS 1.0 models built on billable effort and one-time projects are breaking. This ebook explains the PS 2.0 Transformation Paradox—AI-powered scale is impossible without operational rigor—and outlines what leaders must change in 2026.
Key takeaways
PS 2.0 is an economic necessity, not a strategy choice
AI cannibalizes seat- and effort-based models, forcing a shift to outcome-based value and renewable revenue.
Services engineering is the gatekeeper of scale
Repeatable, productized offers and disciplined service design create the structure—and data—AI needs to drive efficiency and consistent outcomes.
Fix the six execution gaps before you try to scale AI
Weak productization, poor data, manual resourcing, inconsistent delivery, change fatigue, and lack of AI strategy/funding are the blockers that must be resolved to move from awareness to action.
Trusted by Professional Services leaders worldwide
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TSIA provides us with benchmarking data and expert recommendations we need to push ourselves internally and help us in our journey to create a world-class professional services business.
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—Drew Cardon, Sr Engagement Lead, Health Catalyst
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