UK project-based businesses see AI as key to meeting ambitious 2025 targets, Deltek research finds
Technology and automation are considered key factors for enhancing profitability in project-based businesses in the UK. The process of digital transformation is being accelerated, with many professional service firms reaching a level of digital maturity ahead of schedule. Reports indicate that 76% of these firms have made progress in their digital transformation efforts. Embracing technology is crucial for staying competitive and efficient in the evolving business landscape. As businesses continue to invest in digital tools and automation, they are positioning themselves for long-term success.
Technology and automation are 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. The research, conducted across UK-based architecture, engineering, and consultancy firms, identifies technology and automation as the top potential drivers of attaining these goals.
Key Findings
New research released from Deltek finds that 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.
Technology Priorities
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.
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.
Digital Transformation
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 prioritizing digital transformation and maturing more rapidly. Compared to 2024 predictions, 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.
Challenges and Strategies
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 prioritizing the adoption of AI and automation for streamlining project processes. Confidence in tracking key project metrics (profitability, budget, and client satisfaction) has risen to 75% in 2025, up from 59% in 2024.
HONESTAI ANALYSIS
Neil Davidson, Group Vice President, Professional Services Sector at Deltek, comments, "Professional services firms are already recognizing the efficiency savings and growth opportunities provided by digital transformation. This year is a pivotal time for realizing the benefits technology can bring, as firms still look to grow in 2025."
As well as investing in technology, project-based UK businesses are also expanding their workforce, with 76% planning to increase headcount in 2025. To address challenges such as upskilling and employee engagement, firms are focusing on promoting a culture of collaboration and innovation in the workplace, encouraging continuous learning, and providing access to advanced technologies.
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 rely on Deltek for superior levels of project intelligence, management, and collaboration.