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 |
|
|
| Diversified Data & Information Services | 6.73x / 24.6x | Providers of data, analytics, and business information services |
|
|
| Data & Information Services: Financial & Media | 7.08x / 21.7x | Companies offering research, insights, and analytics related to financial market data |
|
|
| Governance, Risk, and Compliance Services | 4.92x / 17.1x | Providers of compliance and risk management solutions |
|
|
| HR Staffing & Professional Services | 1.23x / 12.2x | Workforce solutions |
|
|
| Human Resource Outsourcing | 3.69x / 18.6x | Outsourced human capital management service offerings |
|
|
| IT Consulting | 3.36x / 16.6x | Providers of information technology solutions |
|
|
| Speciality Consulting | 1.58x / 13.1x | Advisory, consulting, and analytic service offerings |
|
|
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)
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Footnotes
Source: Market statistics sourced from Capital IQ and based on 12/31/2021
- Valuation Multiples represent Enterprise Value to LTM Revenue and LTM EBITDA at 1/31/2022
