Square Study Reveals the Digital Transformation of the UK’s Professional Services Industry

Rhea-AI Summary

Square has released new research detailing the future of professional services in the UK. The report highlights challenges such as rising costs and complex regulations, shifting the focus from pandemic-related issues. Key findings show that 43% of businesses have expanded into new verticals, and 75% are utilizing an omnichannel approach. Additionally, 67% report improved practices through new working methods, and 61% plan to increase automation. Despite competitive pressure, the outlook for professional services remains optimistic, driven by technology and innovation.

Positive

• 43% of businesses expanded into new verticals in the past year.
• 75% of businesses adopt an omnichannel approach.
• 67% report improved practices due to new ways of working.
• 61% plan to increase use of automation tools.

Negative

• Rising costs and supply chain issues are primary challenges.
• Increased competition necessitates a more effective marketing strategy.

LONDON--(BUSINESS WIRE)-- Square, the globally trusted software, payments, and hardware solution for businesses of all sizes, has today released new research that looks at the future of professional services across the UK.

The report uncovers the principal challenges faced by professional service businesses, while also identifying the technology solutions available to help them continue to grow. The impact of the pandemic is no longer the primary concern for professional service providers with businesses listing rising costs, supply chain and resourcing issues, increasingly complex budgets, tax, and regulatory changes as the main challenges in the industry.

“When the world went online during the pandemic, technology helped businesses survive,” said Niamh Cunningham, Senior Manager, International Finance and Strategy at Square. “One of the lasting benefits we’ve seen for businesses was the shift to digital ways of working. This switch is providing solutions to challenges all across the professional services sector by allowing businesses to be agile. Our sellers are continuously finding new and more efficient ways of working that prioritise expertise, implementing technology, and setting their business apart in an increasingly competitive landscape.”

To identify where professional service providers are on their digital transformation journey, Square asked 300 decision-makers how technology has transformed their business.

Some of the key findings from the report include:

• Exploring opportunities - 43% said their business had expanded into a new vertical in the past year with a further 43% intending to target a new vertical in the next 12 months
• Omnichannel approach - 75% said their business provides products and services across multiple channels with just over half saying those channels are synchronised
• New ways of working - 67% said new ways of working (e.g. remote working, cloud-based platforms, and accessible data) have improved their business practice
• Process automation - 61% said their business intends to increase their use of automated tools in the next 12 months with 42% using them for financial processes
• External expertise - 61% said their business increased the use of freelancers and consultants during the last year

“There’s no question that professional services have become more competitive during recent years,” said Anne Harris, UK Product Specialist at Square. “Turbulence in the marketplace has seen customers become more discerning than ever when researching potential providers. This makes it essential that professional services take a pragmatic approach to their marketing, social media, and online reviews. For example, requests and signposting to reviews can be included in a business’s automated invoicing and social media messaging, all of which can be easily managed using products like Square Marketing and Invoice tools.”

Despite a difficult period, the future of professional services is full of opportunities. For a full analysis of the top industry trends, insights from Square experts, and real-life business examples, you can access the report here. For questions and additional data insights reach out to press@squareup.com.

About Block, Inc.

Block, Inc. (NYSE: SQ) builds tools to empower businesses and individuals to participate in the economy. Sellers use Square to reach buyers online and in person, manage their business, and access financing. Individuals use Cash App to spend, send, store, and invest money. And TIDAL is a global music and entertainment platform that expands Square's purpose of economic empowerment to artists. Block, Inc. has offices in the United States, Canada, Japan, Australia, Ireland, Spain, Norway, and the UK.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220812005034/en/

press@squareup.com

Source: Block, Inc.

FAQ

What did Square release about the professional services sector in the UK?

Square released new research outlining challenges and opportunities in the professional services sector in the UK.

What are the main challenges faced by professional services according to Square's report?

The main challenges include rising costs, supply chain issues, complex budgets, and regulatory changes.

How is technology impacting professional services according to Square?

Technology is aiding in agility and efficiency, with many businesses adopting new working methods and automation.

What percentage of businesses plan to increase automation in the next year?

61% of businesses intend to increase their use of automated tools in the next 12 months.

What does Square suggest about competition in the professional services industry?

Square notes that competition has intensified, requiring businesses to improve their marketing and online presence.