Insight

Professional Services Market Update

Read more about M&A activity in this sector

Stephen Guy

Stephen Guy

Managing Director, KPMG Corporate Finance LLC

+1 410-949-8909

Professional services overview

Global professional services industry participants include providers of consulting services, on-shore and off-shore outsourced solutions, data and information services, human capital management and workforce solutions, and risk and compliance services. Key public industry players in each sub-sector are categorized as follows: 

Sector

Public Revenue / EBITDA Multiple(1)

Description

Key Select Industry Leadership

Business Process Outsourcing 2.68x / 17.2x On-shore and off-shore outsourced third-party solutions
  • Cognizant
  • Computershare
  • Concentrix
  • ExlService
  • Firstsource Solutions
  • Genpact
  • IBEX
  • TD SYNNEX
  • Teleperformance
  • TELUS
  • WNS
Diversified Data & Information Services 6.73x / 24.6x Providers of data, analytics, and business information services
  • Alliance Data Systems
  • Equifax
  • Experian
  • Informa
  • Teradata
  • Thomson Reuters
  • Verisk Analytics
  • Wolters Kluwer
Data & Information Services: Financial & Media 7.08x / 21.7x Companies offering research, insights, and analytics related to financial market data 
  • FactSet Research Systems
  • Fidelity National Information Services
  • Forrester Research
  • Gartner
  • IHS Markit
  • Ipsos
  • Moody’s
  • Morningstar
  • Nielsen Holdings
  • S&P Global
Governance, Risk, and Compliance Services 4.92x / 17.1x Providers of compliance and risk management solutions
  • Broadridge Financial Solutions
  • Fiserv
  • International Business Machines
  • Oracle
  • SAP
HR Staffing & Professional Services 1.23x / 12.2x Workforce solutions
  • 51job
  • Adecco Group
  • AMN Healthcare Services
  • ASGN
  • Capita plc
  • CBIZ
  • Hays
  • Heidrick & Struggles
  • Kelly Services
  • Kforce
  • Korn Ferry
  • ManpowerGroup
  • Marsh & McLennan
  • PageGroup
  • Randstad
  • Resources Connection
  • Robert Half Intl.
  • TrueBlue
Human Resource Outsourcing 3.69x / 18.6x Outsourced human capital  management service offerings 
  • Aon
  • Automatic Data Processing
  • Barrett Business Services
  • Insperity
  • LifeWorks
  • Paychex
  • TriNet Group
  • Willis Towers Watson
IT Consulting 3.36x / 16.6x Providers of information technology solutions
  • Accenture
  • Atos
  • Capgemini
  • CGI
  • DXC Technology
  • HCL Technologies
  • Infosys
  • Tata Consultancy Services
  • Tech Mahindra
  • Wipro
Speciality Consulting 1.58x / 13.1x Advisory, consulting, and analytic service offerings
  • Booz Allen Hamilton
  • CACI International
  • CRA International
  • FTI Consulting
  • Huron Consulting
  • The Hackett Group


Sector Perspectives: U.S. Outsourced Services Market

  • The U.S. outsourced services industry is an enormous market with attractive growth drivers
  • Private sector spending accounts for a significant portion of the industry
  • Many commercial sectors require a high level of compliance and operational efficiencies, making operators highly reliant upon outsourced services
  • The increasing adoption of cloud-based enterprise resource planning (“ERP”) functions will continue to have a significant impact on IT services and BPO industries
  • Cloud-based ERP systems, along with other adoptions of new technologies, will drive higher IT services spending on consulting and implementation work
  • Managed IT and BPO clients have continued to increase their reliance on outsourced services as virtual and decentralized work environments have begun to co-exist with traditional in-person office settings, which is a defining market trend in response to the prolonged COVID-19 environment

The U.S. Outsourced Services Market is a $136 Billion Market Poised for Continued Expansion

($ in Billions)


We hope you find this information valuable, and as always, feel free to reach out if you would like to discuss in further detail. To read the full report, download the PDF below


Footnotes

Source: Market statistics sourced from Capital IQ and based on 12/31/2021

  1. Valuation Multiples represent Enterprise Value to LTM Revenue and LTM EBITDA at 1/31/2022


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KPMG Corporate Finance LLC’s Business Services team provides investment banking and financial advisory services to a broad range of outsourcing service providers.