Professional services: Chokepoints and risks

Audit, tax, legal, consulting and engineering design firms selling expert judgement

AI automation of routine audit, legal and research work threatens the junior-staff leverage model, even as EY reports AI-related revenue up 30% in 2025².
Audit concentration: the Big Four take 98% of FTSE 350 audit fees (2024), so regulatory fines or liability claims against one firm create systemic risk for capital markets⁷.
Indian delivery depends on US and European clients, exposing it to currency moves, visa rules and outsourcing tax proposals.
Talent attrition and wage inflation in Indian metros erode the cost advantage of capability centres.
Slow fee growth: Big Four revenues grew only about 3-5% in local currency in FY2025¹^,²^,³^,⁴.