Writer: Eleana Teran
3 min read August 2023 — In an era where technological integration has become a determining factor for success, professional services across the region are not only leveraging advanced technologies to streamline their operations but are also actively servicing technology-centric companies. From legal firms to accounting agencies, technological innovation is reshaping the way services are delivered and increasing efficiency and scalability.
A Statista survey published last year showed 53.8% of respondents expected new technologies to expand the current workforce in professional services globally while 51.9% see technology expanding the use of contractors. Global investment in digital transformation, referring to adoption of digital technology to transform business processes i.e. cloud services and automation, was projected to reach $1.6 trillion in 2022 and more than double to $3.4 trillion in 2026.
Boston — a hub of talent and innovation — stands at the forefront of this transformation. As professional services firms navigate the challenges posed by the current economic landscape and the rapidly changing industry dynamics, business leaders are stepping in with adaptive solutions to guide them toward value and growth. Speaking with Invest:, professional services leaders shared the significance of embracing technology in enhancing client service and delivering effective solutions.
Chris Nasson, managing partner at KL Gates
We have been an industry leader in embracing and implementing new technology. We were one of the first firms and are still one of the few firms that has a large in-house eDiscovery team of lawyers and support staff. When done right, that technology creates efficiencies for our operations and cost savings for our clients. At the end of the day, it is all about client service. Times change and we need to evolve with the times. But if you asked a lawyer this question 50 years ago, and if you ask a lawyer this same question 50 years from now, it will all come down to that: client service. We will continue to partner with our clients to provide practical, cutting-edge solutions to their most difficult legal challenges. Client service will always be our paramount priority.
Christopher McKenna, Boston office managing partner at Foley & Lardner LLP
Massachusetts — and specifically Boston — has a high concentration of talent in technology, biotech and various aspects of telecommunications and software. Foley’s emerging technology practice acts as a gateway to help entrepreneurs and companies come to do business in the United States to get formed, funded, operated and grow. We have strong relationships with different government economic institutions, accelerators and incubators for startup entities across the globe, including Canada, Hungary, France, Italy, Columbia, Greece and Latin America. We not only see emerging technology companies from around the world start in the Boston market, but the region also has a robust startup ecosystem, with startup activities springing up around the rich Boston academic environment, such as MIT.
Foley is also involved in many activities with local accelerators, such as Mass Challenge, a nonprofit organization dedicated to supporting innovation and entrepreneurship. Startups admitted into the incubator go through curriculum, mentorship and exhibition events designed to produce avenues of growth, funding and third-party collaboration. All in all, the entrepreneurial spirit is alive and well in Boston and globally. With more people either getting their businesses off the ground or recuperating from the pandemic, more capital will be infused into the local economy.
Pat Kinsel, founder and CEO of Notarize Inc.
Capital is more expensive for companies these days, so we have shifted our business to be on a path to profitability. This has required significant changes to how we sell, serve clients, and market our services, with a focus on contribution margins. Almost all of our lines of business are contribution margin positive, and we are working towards achieving break-even. This response is necessary given the times; all startups and technology companies are facing similar challenges. However, our situation is somewhat unique, as our business model and pricing are transactional and we’ve seen a great deal of change as interest rates have impacted industries differently over time. For example, some of our customers are I-buyers or digital car companies. As interest rates have risen, we have seen a shift in their volumes and business; fewer people are buying cars and homes. Fortunately, we have a broad mix of customers, so when the economy fluctuates, people still need to notarize forms, and we have seen a shift in usage toward managing financial assets during periods of distress. For example, people may withdraw funds from a 401K or update their beneficiary information. Despite this shift, we have maintained our 100% annual growth rate in volume. We could have done better if the shift had not happened, but we are focused on being a broad utility and highly configurable platform and will benefit when these industries’ volumes pick back up. When someone comes to us with a new use case, we can easily onboard them, understand the business requirements and compliance requirements, and then serve their transaction. As a result, we have a healthy mix of customers across industries.
David Natan, partner of Newburg CPA
We have seen significant growth in the biotech/life sciences area, with Massachusetts being a strong hub within this industry. We have also seen growth in e-commerce, technology and software companies. We have seen growth within the areas of hospitality through new franchisees, expanded restaurant groups and breweries. We have internal and external resources on our IT. Our spending on IT is quite high as we are dealing with people’s personal info, so we have an internal full-time technology person and an outsourced technology company that specializes in CPA firms.
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