ANZ Consultancies Positive About 2024 Outlook and Technology

From Deltek Clarity report summarised by Consultancy.com.au

Despite a mixed environment, professional services firms in Australia and New Zealand are positive about the outlook for 2024, with technology serving as a key enabler of growth and a top investment priority. This is according to new research from Deltek.

The 2024 annual Trends & Insights report from Deltek (known as ‘Clarity’) shows that professional services firms remain optimistic for the current year, even against a backdrop of tighter professional services spending, geopolitical issues, and other pressures.

In Australia and New Zealand, nearly nine in 10 respondents (86%) predict a profit increase in 2024 – a rise from the three-quarters (77%) the year previous. Notably, consulting firms are more optimistic about profit growth compared to their architecture and engineering counterparts.

Source: Deltek, 5th Annual UK, Australia and New Zealand Clarity Industry Study

As such, leaders placed technology investments at the top of their priority list for 2024, flanked by more effective sales/marketing. Notably, investments in talent dropped off slightly, with the labour market cooling down from the highs seen over the past two years.

Priorities are consistent across the landscape, although consultants (37%) are more likely prioritising the effective implementation of emerging technology – in part because it helps them attain a frontrunning position in practicing what they preach at their own clients.

Most well-known emerging technologies are perceived as being important to professional services groups, with cybersecurity and data analytics at the top, although artificial intelligence (and generative AI) have increased significantly in importance since the previous edition of the Clarity report.

Source: Deltek, 5th Annual UK, Australia and New Zealand Clarity Industry Study

Improving digital maturity
While technology and AI is a high priority, Deltek’s study found that few firms label themselves as digitally mature. Only a quarter (25%) are currently at the ‘Advanced’ or ‘Mature’ stages of digital maturity.

However, over half (57%) of firms feel that they’ll be at least ‘Mature’ in three years, meaning that significant investments in technology can be expected. Those being left behind are starting to get worried – three-quarters (75%) are concerned about competitors implementing technological advancements faster than they can.

Consultants (88%) are the most likely of the three groups to increase investment, with architecture firms (70%) being least likely to increase investment.

The Deltek Clarity study surveyed 400 senior decision-makers, including CEOs, C-suite level directors, and heads of departments such as Finance, Operations, Delivery, or Projects, around half of which are based in Australia and New Zealand.