- Technology and automation seen as potential top drivers of profitability for UK project-based businesses
- Digital transformation is being fast-tracked, with many professional services firms already achieving a level of digital maturity that they had not expected to reach until 2027
- 76% of project-based UK businesses entered 2025 planning to expand their workforce
LONDON, April 1, 2025 -- New research released today from Deltek, the leading global provider of software and solutions for project-based businesses, finds the UK's project-based businesses started the year optimistic about how technology can help them reach their growth targets in 2025. Despite economic headwinds, firms are ambitious, with 83% looking to increase profit growth this year and 42% expecting to increase headcount significantly. In terms of predicted gross profit margins (GPM) this year, engineering firms started 2025 the most confident about GPM increases, with 60% predicting increases of 10% or more compared to 2024.
The research, conducted across UK-based architecture, engineering and consultancy firms, identifies technology and automation as the top potential drivers of attaining these goals. The top two priorities for firms are investing in new technology e.g. adopting AI (39%) and the effective implementation of new innovations e.g. AI (37%).
Consultancy firms are most likely to tie profitability to the successful implementation of AI, with 64% anticipating increased profits following successful AI implementation. However, architecture firms are leading the way in the focus of automation and robotic process automation (RPA), with over half (53%) of architecture firms placing it as imperative to the success of UK firms. Cybersecurity is also a high priority, with over a third (36%) of project-based firms now citing it as a top three priority for their business, compared to less than a quarter (23%) last year.
As a result of the focus on technology advancements, over half of UK project-based firms (56%) are now at a "Mature" or "Advanced" stage of their digital transformation development, up from less than a third (32%) in 2024. This indicates that firms are prioritising digital transformation and maturing more rapidly. In fact, compared to 2024 predictions on how fast they would achieve maturity in digital transformation, timelines have been brought forward two years with many professional services already achieving a level of digital maturity that they had not expected to reach until 2027. Again, Architecture firms are currently leading the way in digital transformation with nearly two-thirds (64%) at a mature or advanced stage of their journey.
The use of AI and automation are also pivotal this year in attaining key performance indicators (KPIs) for project-based businesses in the UK. Rising competition for talent (30%) and project complexity (28%) in 2025 are key pressures identified for project management in the next three years. However, 40% of firms are addressing this by prioritising the adoption of AI and automation for streamlining project processes. In 2025, confidence in tracking key project metrics (profitability, budget, and client satisfaction) has risen to 75% in 2025, up from 59% in 2024.
Neil Davidson, Group Vice President, Professional Services Sector at Deltek comments, "Professional services firms are already recognising the efficiency savings and growth opportunities provided by digital transformation. This year is a pivotal time for realising the benefits technology can bring, as firms still look to grow in 2025."
"It's promising to see that the shift in the use of technology is also underpinning greater confidence in tracking project metrics – something we have not seen in our past Clarity reports. The strides professional services firms have made in implementing advancements in technology, ahead of schedule, are further improving their ability to manage the factors that contribute to attaining KPIs. Successful tracking is vital for providing insight into core business metrics, the optimisation of processes, and supporting productivity to help firms ensure they stay on-track to meet their goals."
As well as investing in technology, project-based UK businesses are also expanding their workforce, with 76% planning to increase headcount in 2025. This is a significant increase from last year, where just 58% of firms expected to expand their workforce. Engineering firms are the most ambitious in this area in terms of significant headcount increase, with 42% planning to igrow their talent pool by more than 10% this year (compared to the average 34% expecting the same level of growth across all professional services firms). However, organisations are conscious that a lack of upskilling investment (48%) and a lack of employee engagement (34%) are still detrimentally impacting their organisation. To address this and empower young professionals in 2025, firms are concentrating on promoting a culture of collaboration and innovation in the workplace (51%), encouraging continuous learning (49%), and providing access to advanced technologies (45%).
To download the full report, visit deltek.com/en-gb/clarity-report-emea.
Methodology
- Based on an independent, self-completion online survey, conducted by 3Gem Media Group in January 2025, with 200 senior strategic decision-makers in UK Architecture, Engineering or Consulting firms.
- To qualify, respondents had to be at a senior level including CEOs/Managing Directors (MDs), C-suite level directors, and heads of relevant departments such as finance, operations, delivery and projects, and work in firms of 20+ employees.
- The sample consisted of 37% Architecture or A/E (architecture-led engineering), 26% Engineering (or engineering-led architecture) and 37% Consulting (management/market research) firms, and was made up of 6% small (20-50 employees), 29% medium (51-250 employees), 25% large (251 to 500 employees) and 40% very large (501+ employees) sizes of organisations.
Company Type:
This year's survey included architecture, engineering, and consulting firms. The term 'architecture and engineering' (A&E) refers to all architecture, engineering, and allied firms. The term 'consulting' refers to management consulting and market research companies. Throughout this report, the total sample results are referred to as professional services firms.
About Deltek
Deltek is the leading global provider of enterprise software and information solutions for project-based businesses. More than 30,000 organizations and millions of users in over 80 countries around the world rely on Deltek for superior levels of project intelligence, management and collaboration. Our industry-focused expertise powers project success by helping firms achieve performance that maximizes productivity and revenue. Learn more at www.deltek.com.
CONTACT: Deltek Media Relations Team, press@Deltek.com
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