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July 1, 2025
Overview
Challenges
Professional services organizations must navigate the shift from project-based engagements to AI-powered, subscription-oriented models, requiring strategic, operational, and technological realignment to deliver measurable customer outcomes and sustain competitive advantage.
Summary
The article discusses the significant transformation underway in the professional services sector, moving from traditional, project-based models (PS 1.0) to a more integrated and AI-driven approach (PS 2.0). Highlighting the challenges and the slow adoption of new practices, it underscores the importance of aligning services with measurable customer outcomes and exploring innovative revenue models such as PS-as-a-service. With digital transformation at the forefront, organizations must adapt their strategies to thrive in this evolving landscape.
Included in the full report
Shift to AI-Enabled, Integrated Models
Professional services are evolving from traditional project-based engagements to AI-powered, subscription-oriented models that deliver greater efficiency and scalability.
Rise of PS-as-a-Service
Subscription-based offerings are creating continuous customer engagement and renewable revenue streams, replacing the transactional nature of PS 1.0.
Outcome-Centric Value Delivery
Success in PS 2.0 hinges on aligning services to measurable customer outcomes rather than billable hours, enhancing both impact and perceived value.
Strategic and Digital Transformation Required
Organizations must modernize their operating models, governance structures, and technology stacks to remain competitive in this rapidly changing market.
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