Business services companies have been amongst the most resilient during the pandemic. The economic situation has forced corporates to reassess their business models – and, in many cases, consider divesting non-core operations. That’s provided opportunities for those in IT, energy and professional services.
It has also meant that the sector has retained the interest of private equity funds. Those that have adopted tech-enabled service models are typically the most attractive to investors. These companies are able to scale rapidly and often promise greater profitability, recurring revenue streams and clearer visibility of future earnings.
But this is not a sector without challenges. Brexit means uncertainty for business services organisations that rely heavily on international workforces. As well as rethinking their workforce strategy, they’ll need to ensure compliance with changing regulations, certifications and standards. And, of course, many are facing significant challenges due to the economic impact of COVID-19 – in particular, property services and companies with clients in retail, catering and travel.
