Legal services the ‘standout performer’, with Digital and Education and Built Environment Services also driving growth according to PwC’s Global Business Services Index 2025

• The Business Services industry has demonstrated resilience and innovation to drive performance, improving its overall Index score this year.  

• Six out of the eight constituent sectors showed improvement in their growth dimensions, indicating positive demand and market shifts.  

• All eight sectors showed improved productivity gains, driven by investments in generative AI, upskilling and streamlining workforces.

• Legal Services has been the standout performer, driven by broad-based growth across practice areas and robust operational performance. 

• Digital and Education organisations that embraced AI also recorded clear year-on-year gains across all four Index dimensions.

• Human Capital Management and Business Process Outsourcing providers face demand challenges but have demonstrated operational resilience. 

• Global Business Services Index 2025 (GBSI) shows that the industry saw a slight increase in its year-on-year performance. Overall, the GBSI industry score was 116, an increase of +1, which reflects a modest rise for 2025.  

The Legal Services sector was the ‘standout performer’ with an increase in Index score by eight points, driven by increased demand and enhanced billing rates according to PwC’s Global Business Services Index 2025. The Digital & Education sector also made impressive gains (+5 points), capitalising on AI and new delivery models, unlocking vital productivity improvements and confirming technology's transformative potential. This was followed closely by Built Environment Services (BES) which saw its score increase by four points, driven by demand for waste management, security and sustainability-led services. 

Logistics and Distribution, Professional Services, and the Testing, Inspection and Certification sectors remained resilient, with consistent year-on-year performance. Human Capital Management firms continue to struggle following a partial bounce-back after the COVID-19 pandemic. The Business Processing Outsourcing sector also faced softening demand, but both these sectors achieved impressive cash flow and productivity gains.

The GBSI provides an outside-in view of the sector, assessing eight sectors across four critical areas: growth, profitability, productivity ratios and cash flows. The eight sectors within the Index are: Built Environment Services, Business Process Outsourcing, Digital & Education, Human Capital Management, Legal Services, Logistics & Distribution, Professional Services, and Testing, Inspection & Certification. 

Driving value shifts across industries 

The GBSI findings show that the Business Services industry is navigating an era of profound change, compelled by technological and AI advancements, climate disruptions, regulatory shifts, and evolving geopolitical dynamics. As industry boundaries converge and new value pools emerge, fortune is favouring bold and innovative investment strategies. 

Which is why one in two Global CEOs now report expanding into adjacent markets, unlocking emerging opportunities for both their clients and themselves. 36% of global Business Services CEOs state that more than 20% of their revenues in the last five years have come from competing in new sectors and industries. 

Performance across sectors 

Legal Services reported strong growth in both revenues and operating profits in FY24. Margins saw slight improvements, supported by top-line gains and effective cost management initiatives. Productivity has shown improvement across the sector, supported in part by the rising adoption of AI and digital tools. Liquidity ratios remained stable. While firms have begun taking proactive steps to strengthen cash flows, there is more to be done on supplier management and collections.

Digital and Education services are seeing the benefit of technological advancements in delivering value. This transformation is already underway, with sector players launching new AI-enabled solutions that are driving growth, profitability and efficiency. 

Built Environment Services maintained its growth trajectory, registering improvements across all performance dimensions. Productivity improved as firms accelerated adoption of technologies such as AI, robotics, and Internet of Things (IoT). Liquidity ratios saw slight increases, reflecting a balanced approach to growth and financial discipline. 

The Logistics and Distribution sector is expected to experience an upward trajectory of growth which is primarily driven by demand for ocean and air freight in Asia. The sector is heavily exposed to megatrends such as rising tariffs, technological advancements and inflationary pressures which can constrain growth. 

The Professional Services sector saw accelerated growth, but margins remained flat, as gains were offset by rising payroll costs. Productivity saw an uplift thanks to growing investments in global delivery models, AI and digital tools. Meanwhile, liquidity ratios dipped slightly, as firms reinvested cash from earnings into strategic growth initiatives.

The Business Process Outsourcing sector faced challenges in FY24, due to subdued client demand amidst a challenging macroeconomic environment which slowed growth. Modest revenue gains and rising wage costs also contributed to squeezed margins. Nonetheless, firms have seen improved productivity through streamlined workforces and have started exploring GenAI solutions to further enhance efficiency.

The Testing, Inspection and Certification sector maintained stable performance, despite slower growth and restructuring efforts. Productivity gains have been achieved by those who have adopted digital and AI tools at pace to enhance quality and speed of service delivery. 

The Human Capital Management (HCM) sector has been impacted by challenging market conditions which intensified pressure on growth and profitability. As a result, there is a shift towards tech-enabled offerings, with a greater focus on productivity and restructuring. Overall, the HCM score dropped below the baseline – a clear indication that business models need to be urgently reassessed.

Mark Anderson, Global Business Services Leader at PwC said: 

“This year’s Global Business Services Index shows clear diverging fortunes across the sectors. However, in the face of turbulent market forces—spanning from AI advancements and climate change to geopolitical shifts—the business services industry demonstrated resilience: investing in innovation, strengthening productivity, and delivering some impressive gains in cash flow.   

“As industry boundaries converge, business services firms are not only facilitating transformation in other sectors but are also reshaping themselves. This is a pivotal moment of opportunity for those willing to be bold—to invest, innovate, and reimagine. The Business Services leaders who embrace these changes will not only propel the industry forward but also play a vital role in international economic growth and job creation. "