Operational inefficiencies and legacy IT slow down professional services firms

Operational inefficiencies and legacy IT slow down professional services firms

Key Points

  • Professional services firms are facing a more complex business environment and are increasingly looking to intelligent automation and modern business processes, according to research from Pierre Audoin Consultants and Unit4.
  • The international study surveyed 500 respondents from professional services organisations, including management consulting and IT consulting firms.
  • 60% of leaders expect work volumes to increase and/or become more complex in the next 12 months.
  • More than two thirds, or 68%, expect resource management workloads to rise and/or become more complex.
  • Around 30% of respondents said operational inefficiencies are causing frequent or regular delays in project delivery.
  • 66% reported relying on fragmented application environments, while 19% said they still depend on multiple systems that require manual work and spreadsheets.
  • 28% said they spend at least 30% of their working week on administrative tasks, equivalent to around 12 hours lost in a full-time week.
  • The report said modern, integrated, cloud-based platforms are associated with fewer reporting errors, better forecasting, more efficient resource management and smoother project delivery.
  • 88% said a single, consistent view of data would improve processes, while 86% said it would improve the predictability of business performance.
  • More than 60% expect AI to have a beneficial impact, and 33% said it will fundamentally change project and resource management processes.
  • The study was reported by Consultancy.eu, with comments attributed to Nick Mayes, senior consultant at Pierre Audoin Consultants.

As reported by Consultancy.eu, the international study surveyed 500 respondents from professional services organisations, including management consulting and IT consulting firms, and found that 60% of leaders expect their work volumes to increase and/or become more complex in the next 12 months. The report said that this pressure is not limited to client-facing work, but extends across financial management, human resources and people management as well.

What is driving the pressure?

The research suggests that clients are now more demanding, with firms having to prove measurable outcomes rather than simply provide advice. Consultancy.eu reported that digital tools and artificial intelligence have made it easier for clients to generate insights internally, which means consultants are now expected to deliver deeper strategic value and faster execution. The study also found that 68% of respondents expect resource management workloads to rise and/or become more complex, with the researchers linking this to changes in workforce structure since the start of the decade.

How are legacy systems affecting firms?

On the project and financial side, the report found that 30% of respondents admitted to frequent or regular delays in project delivery because of operational inefficiencies. It also said 66% of firms rely on fragmented application environments, while 19% still depend on multiple systems that require manual work and spreadsheets. These findings point to a heavy reliance on older processes that slow teams down and make it harder to work from a single source of truth.

How much time is being lost?

According to Pierre Audoin Consultants and Unit4, professionals in services firms spend unnecessary time on administrative tasks because of these inefficiencies. The study suggested that 28% spend at least 30% of their working week on such activities, which Consultancy.eu described as equivalent to employees on a full-time working week losing around 12 hours to administrative burden. The research said reducing avoidable administrative burden in areas such as timesheets, expenses and project management will be critical if firms want to retain talent and increase revenue.

What did the researchers say?

Consultancy.eu quoted the researchers as saying that firms need to cut down avoidable admin work to improve both talent retention and commercial performance. Nick Mayes, senior consultant at Pierre Audoin Consultants, said that modernisation of core processes is giving leading firms an advantage by improving productivity and reducing time lost on manual processes and error correction. He added that, as competition intensifies, firms understand that limiting the impact on their workforce is crucial to retaining talent and delivering projects more efficiently.

Which firms are ahead?

The study found that firms using modern, integrated, cloud-based platforms are performing better across several operational areas. According to the report, these firms experience fewer errors in financial reporting, improved budgeting and forecasting, more efficient and timely resource management, and streamlined project delivery. Country-wise, the US was identified as the most advanced, with 36% adoption of cloud-based systems, while Germany had the lowest adoption at 22%; the UK sat in the middle of the seven countries studied.

Why does data matter?

The report also highlighted the value of having a better and single, consistent view of data. It said 88% of respondents believe this would improve firm processes, while 86% said it would improve the predictability of business performance. More than 60% also expect AI to have a beneficial impact, and 33% told Unit4 and Pierre Audoin Consultants that AI will fundamentally change how project and resource management processes work.

What does this mean for the sector?

The research indicates that professional services firms are under growing pressure to modernise if they want to stay competitive. Consultancy.eu reported that firms are being pushed by clients to transform their commercial models, but the researchers said this will only be possible if firms embrace modern cloud-based systems. Those systems, according to the report, provide the agile and scalable foundation needed for process automation, stronger data management and AI adoption.

For professionals seeking to respond to this shift, targeted learning in areas such as Business & Management and Information Technology may help teams better adapt to automation, cloud systems and operational transformation.

Why is this issue important now?

The timing matters because the study suggests the workload challenge is not temporary but structural. Firms are dealing with rising complexity from clients, changing workforce models and the continuing drag of fragmented technology environments. In that context, the report argues that modernising core processes is not just a technology upgrade, but a competitive necessity for productivity, talent retention and delivery performance.

What Customisation You Need?