By Elizabeth Harr
What is the biggest threat facing your firm over the next few years? My firm recently asked this question in a survey of professional services firms and, as shown in Figure 1, found the eroding value of services was a consistent theme in five of the top seven threats.
According to our findings, this trend in commoditization is being driven partly by increased competition from new and larger firms, creating downward pressure on prices and squeezing already low margins. We also learned firms believe the ongoing revolution in artificial intelligence and automation will only hasten the commoditization of many services that were once highly valued.