| SIC Codes: | 8743 8999 0781 0741 7335 4731 5199 6541 7221 7291 7311 7312 7313 7319 7331 8742 7336 7361 7371 7373 7376 7379 7389 7819 8111 8711 8712 8713 8721 8731 8732 8734 8741 |
| NAICS Codes: | 541940 541990 541110 541120 541191 541199 541211 541213 541214 541219 541310 541430 541490 541511 541512 541513 541519 541611 541612 541613 541614 541618 541620 541690 541711 541712 541720 541810 541820 541830 541840 541850 541860 541870 541890 541910 541921 541922 541930 541320 541330 541340 541350 541360 541370 541380 541410 541420 |
The US professional services industry includes about 770,000 firms with combined annual revenue of more than $1 trillion. Major firms include Booz Allen Hamilton, Computer Sciences Corporation (CSC), Gensler, IBM, Jacobs Engineering Group, Omnicom, PricewaterhouseCoopers, and Skadden, Arps, Slate, Meagher & Flom. The industry is highly fragmented: the 50 largest firms account for less than 20 percent of revenue.
Demand is driven by corporate profits and the overall health of the US economy. Although some professional services are necessary for the normal functioning of most companies, many services can be postponed during economic downturns. The profitability of individual firms depends on having a regular flow of projects. Large firms have advantages in marketing and in being able to offer wider ranges of services to meet the needs of major clients. Small firms can compete successfully by offering special expertise or focusing on particular regions. Revenue per employee varies among the different types of professional services.
The three largest industry segments are IT services, legal services, and architectural and engineering services, each of which accounts for about 20 percent of revenue. Consulting, accounting services, and scientific research each generate about 10 percent of revenue. Other segments include advertising and specialized design services.
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