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Why Do Companies Invest in Professional Services?

by Nala Samir
7 months ago
in Services
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Why Do Companies Invest in Professional Services?
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The business world is full of companies that provide “professional services,” but many individual investors may not know what those services entail. These firms allow corporate clients to harness the insights of subject-matter experts in fields from medicine and law to psychology and automation in order to improve commercial outcomes. Read on for an overview of how professional services are used in the business world and why they’re so important.

Advisory and Communication Services

Other than delivering a product or service that solves people’s problems, there’s no part of doing business that’s more critical than skillful communication. Advisory companies like Teneo, co-founded by business and consulting expert Declan Kelly, help companies develop a better understanding of their market environment and create future-proof strategies to communicate with shareholders, stakeholders, customers, and employees alike. These companies can also guide philanthropic efforts by businesses; Declan Kelly CEO is also known for his partnerships with numerous charitable organizations.

International Tax and Legal Services

For companies that conduct business internationally, staying compliant with local tax authorities can be a major hassle. Taxation affects not only a company’s net income, but also numerous business activities, like mergers, acquisitions, and importing and exporting. Political climates that are subject to change in the countries where these businesses operate can further complicate matters. To ensure that essential commerce activities can proceed unhindered, many businesses turn to firms that offer tax and legal professional services that guide them through key processes, no matter how the landscape changes.

Software and Technology Services

In the modern economy, companies can’t be successful without understanding and harnessing the power of digital tools to collect data, make predictions, and deploy services globally. Unfortunately, for businesses that don’t specialize in tech-first solutions, the learning curve can be steep. Digital consulting and service companies help businesses choose the right technological solutions, strengthen cybersecurity practices, and develop robust information technology infrastructure.

Professional services are a broad category, so it’s important for individual investors to understand why publicly traded companies may choose to invest in their services.

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