Business Services Sector Report Q2 2025

This report provides an analysis of the Business Services sector for the second quarter of 2025. It outlines recent industry news, including significant layoffs at major consulting firms due to government contract cancellations and economic uncertainties. The report discusses the impact of these layoffs on the recruitment landscape and highlights states actively seeking to hire displaced federal workers. Additionally, it details the rise of generative AI within consulting firms, emphasizing its role in transforming operational processes. The report also presents a summary of mergers and acquisitions within the sector, noting key transactions such as Accenture's acquisition of Altus Consulting and Baker Tilly's acquisition of Moss Adams. Furthermore, it includes insights into the current market conditions affecting consulting services, with a noted decrease in new bookings for firms like Accenture, attributed to reduced government spending and increased competition from AI investments. The report concludes with an overview of market projections and trends influencing the Business Services sector.