Professional services

Definition

Many industry groups have been used for academic research, while looking at professional services firms, making a clear definition hard to attain. Some work has been directed at better defining professional service firms (PSF). In particular, Von Nordenflycht generated a taxonomy of professional service firms, defining four types:

1. Classic PSFs (e.g. law and accounting firms): characterized by a high knowledge intensity, a professionalized workforce, and low capital intensity
2. Professional campuses (e.g. hospitals): characterized by high knowledge intensity, a professionalized workforce, and high capital intensity
3. Neo-PSFs (e.g. management consultants): characterized by high knowledge intensity and a low capital intensity
4. Technology developers (e.g. R&D firms, biotechs): characterized by high knowledge intensity and a high capital intensity

Frameworks such as this aid the ability of managers and academics to better understand how such firms manage themselves and how to judge benchmark practices.

Example occupations

There is no definitive list of occupations in professional services, but examples include the following:

• Accountant
• Actuary
• Appraiser
• Architect
• Consultant
• Doctor
• Evaluator
• Engineer
• Financial planner
• Geoscientist
• Investment manager
• Information technology consulting
• Inspector
• Lawyer
• Management consultant
• Public Relations
• Social Workers
• Supply chain management
• Training and development
• Urban planner
• Veterinary physician

Provision

Professional services can be provided by sole proprietors, partnerships or corporations. A person providing the service can often be described as a consultant. In law, barristers normally organise themselves into chambers. Businesses in other industries, such as banks and retailers, can employ individuals or teams to offer professional services for their customers. Major cities such as London and New York are leading global centres for professional services firms.

Marketing

The marketing and selection of professional-service providers may depend on skill, knowledge, experience, reputation, capacity, ethics, and creativity. Large corporations may have a formal procurement process for engaging professional services. Prices for services, even within the same field, may vary greatly. Professional-service providers may offer fixed rates for specific work, charge in relation to the number or seniority of people engaged, or charge in relation to the success or profit generated by the project.

References

References

1. "Professional services". [[The Office of Fair Trading]].
2. "What are professional services?". PwC.
3. Von Nordenflycht, A, "What is a professional service firm? Toward a theory and taxonomy of knowledge-intensive firms", ''Academy of Management Review'', Vol. 35, No. 1. (2010), pp. 155–174
4. (3 July 2014). "Key Facts about the UK as an International Financial Centre 2014". TheCityUK.
5. (March 2015). "The Global Financial Centres Index 17". Long Finance.
6. "Choosing an Accountant". Duquesne University Small Business Development Center.
7. "Selection Criteria". Association of Management Consulting Firms.
8. "A Guide on How to Select a Project Management Consultancy". Project Management Institute.
9. (17 October 2016). "How management consultants are cashing in on austerity". The Guardian.