Professional Services Market Study Market assessment of the Dutch professional services industry -

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1 - Market assessment of the Dutch professional services industry - November 2014 Copyright All rights reserved.

2 Table of Contents Introduction 3 Professional Services Industry 5 Market Size per Industry 11 Key Findings 24 Appendix 31 2

3 Introduction Research Question Key Question What is the size of the Professional Services industry in the Netherlands? Definition of Professional Services Accounting Advertising Architecture Engineering IT Consultancy* Management Consulting Market Research Notary Public Relations Scientific Research Legal Other Professional Services* Market Definition Definition of professional services is for a large part in line with the definition applied by the CBS, with two differences * Note that IT consultancy (SBI 08 code 62.02) and Other professional services (SBI 08 code 82) are not categorised as professional services by the CBS (SBI 08 code M). For the purpose of this study both segments have been added to the definition of the professional services market. Other professional services in addition includes professional services not explicitly classified in one of the other categories. Companies of all sizes in scope Market Scope 100+ FTE FTE FTE 1 10 FTE Geographic Scope + UK benchmark Companies located in The Netherlands Data Scope Publicly available information: Government statistics, annual reports of firms Analyst firms, economic institutions, research departments of banks Databases: Statline, Kamer van Koophandel, Company.info, ONS 3

4 Table of Contents Introduction 3 Professional Services Industry 5 Market Size per Industry 11 Key Findings 24 Appendix 31 4

5 Professional Services Industry Development of Dutch Enterprises There currently are more than >1,4 million enterprises in NL, an increase of 114% over the past 15+ years The number of active enterprises has increased every single year (CAGR of 5,2%) with the exception of 2002 Development of total number of Dutch enterprises ( ) Other firms Professional Services enterprises = +113% +32% * ,4% % ,2% % % 10% 5% 0% 1,3% 1,3% 0,7% -0,6% 2,3% 2,0% 3,7% Change of definition 10,2% 6,4% 6,0% 5,6% 5,4% 1,6% 2,9% -5% Year over year growth of total number Dutch enterprises * See Slide 35 in the Appendix for details 5

6 Professional Services Industry Development of Dutch Enterprises Industry Development of Enterprises per Industry Number of companies per sector Sector % Growth % Growth ,9% ,4% ,4% 4,9% 3,7% 6,8% 5,6% 4,8% +13,0% ,6% 4,3% 3,7% 5,7% 5,7% 5,4% 6,2% 6,0% ,5% 4,0% 4,0% 5,1% 5,6% 6,1% 5,8% 7,5% 10,0% ,5% 4,0% 4,1% 4,9% 5,5% 5,9% 6,2% 7,8% 9,8% Administrative & Support Services Manufacturing Information & Communication Agriculture, Forestry & Fishing Financial & Insurance Activities Arts, Entertainment & Recreation Other Service Activities Human Health & Social Work Construction 46,6% 16,9% 60,9% 5,8% 42,1% 77,1% 40,1% 39,6% -0,1% -1,0% 155,6% 1,6% 1,0% 0,9% 0,8% 5,4% 7,3% 9,2% 6,4% 10,9% ,4% 10,2% 15,4% 14,9% Wholesale & Retail Trade 10,5% -0,2% 16,8% ,5% 20,6% 21,0% Professional Services 74,3% 4,8% 19,6% ,4% 9 different sectors (see Slide 32 for details) Professional services is the largest sector in the Netherlands, based on the number of companies

7 Professional Services Industry Development of Professional Services The professional services industry consists of ~300,000 companies, of which ~86% is freelancer Over the past 15+ years, the industry has grown by 281% accounting for 21% of the total number of NL enterprises Development of Professional Services firms ( ) % CAGR enterprises = +281% +8% categories (see Slide 33 for details) IT Consultancy Advertising % * Accounting Engineering % Other Professional Services - Industrial design consultancy - Translation and interpretation - Other professional services n.e.c Management Consulting Size % Share 25% 20% 15% 11,7% 12,0% 12,0% 12,8% 13,2% 15,8% 15,8% 16,5% 17,4% 18,4% 19,1% 19,6% 19,9% 20,4% 20,6% 21,0% Freelance 86% Small 10% Boutique 2% 0 Professional Services as % of total NL enterprises 9,3 >Medium 2% Rounded * See Slide 35 in the Appendix for details 7

8 Professional Services Industry Industry Breakdown 2014 Industry # Firms Freelance Breakdown by employee size (2014) Boutique Small Medium Large 2-5 FTE 5-10 FTE FTE 50+ FTE Growth ( ) Accounting % 79,2% 14,5% 3,6% 2,3% 0,32% 35,7% Advertising % 83,6% 11,9% 2,7% 1,5% 0,17% 43,9% Architecture % 78,6% 14,9% 3,6% 2,7% 0,24% 83,1% Engineering % 82,6% 10,8% 3,2% 2,9% 0,58% 45,7% IT Consultancy % 83,2% 9,5% 3,1% 3,5% 0,77% 107,8% Law* % 70,4% 17,9% 7,0% 4,1% 0,61% 70,7% Management Consulting % 90,1% 7,5% 1,2% 1,0% 0,13% 109,8% Market Research % 82,3% 11,1% 3,1% 3,0% 0,54% 33,9% Notary % 47,7% 18,5% 21,7% 11,7% 0,36% 16,1% Public Relations % 84,6% 10,2% 2,8% 2,3% 0,19% 36,4% Scientific Research % 74,1% 11,7% 5,2% 6,7% 2,24% 56,3% Other Professional Services % 88,8% 7,7% 1,6% 1,5% 0,47% 89,1% Rounded * Looks only at Law firms, other Legal service providers included in the category Other 8

9 Professional Services Industry Employee and Concentration Analysis 2007 vs Development by employee size ( ) +74% ,7% ,19% ,11% - 0,01% ,580 enterprises + 97,4% ~97% of the growth in enterprises can be attributed to freelancers Freelance 1 FTE Boutique Small Medium Large 2-5 FTE 5-10 FTE FTE 50+ FTE 2014 Development of concentration (Medium + Large enterprises as a share of total) Concentration ranges from 1.1% to 12.1% depending on industry -49,5% 24,0% -21,7% -66,3% 12,1% Large Medium -37,3% 8,7% -26,6% -27,9% 7,5% -29,0% -27,2% -20,6% -34,4% 5,8% 4,8% 4,7% -39,8% 4,9% 4,3% 3,6% 3,5% 2,6% 2,6% 2,9% 3,5% 3,1% 2,4% 1,7% 1,8% 1,1% 11,4% 9,0% -51,7% 4,1% 2,0% Weighted Avg ,26% Accounting Advertising Architecture Engineering IT Consultancy Law Management Consulting Market Research Notary Public Relations Scientific Research Other 9

10 Table of Contents Introduction 3 Professional Services Industry 5 Market Size per Industry 11 Key Findings 24 Appendix 31 10

11 Per employee range Market Size per Industry Accounting Firms 299,245 10% Growth = 35,7% 5,4% 5,0% 5,2% ,3% Development of enterprises by employee size 2,2% 4,2% 1,2% Large Medium # Firms 95 0,3% 675 2,3% -20,8% Growth ,3% Small ,6% -5,3% Boutique ,5% 8,9% Freelance ,2% 47,0% Development of financials ( /x million) Development of employees (x000) Revenue Costs EBIT EBIT Margin External/hired employees Internal employees ,2% ,5% ,6% ,7% ,5 28,5 116,5 27,5-1,0% 114,2 27,2 112,1 27,2-2,4% 87,0 89,0 87,0 84, Industry Size % CAGR 11

12 Per employee range Market Size per Industry Advertising Agencies 299,245 10% Development of enterprises by employee size Growth = 43.9% 3,2% 4,9% 0,3% 4,3% Large ,0% ,0% ,9% Medium Small # Firms 50 0,2% 450 1,5% 795 2,7% -9,1% -5,3% -9,1% Growth Boutique ,9% 4,5% Freelance ,6% 57,0% Development of financials ( /x million) Development of employees (x000) Revenue Costs EBIT EBIT Margin External/hired employees Internal employees ,7% ,7% 54,2 +1,7% 57,9 55,9 57,0 11,1% ,5% ,6 25,1 26,1 26,6-0,7% 30,6 30,8 31,8 30, Industry Size % CAGR 12

13 Per employee range Market Size per Industry Architecture Firms 299,245 Growth = 83.1% Development of enterprises by employee size 17,5% 1,1% # Firms Growth % 6,7% 2,6% 10,2% 20,6% ,0% Large Medium 15 0,2% 170 2,7% -57,1% -35,8% Small 225 3,6% -26,2% Boutique ,9% 21,2% Freelance ,6% 140,1% Development of financials ( /x million) Development of employees (x000) Revenue Costs EBIT EBIT Margin External/hired employees Internal employees ,4% ,5% ,2% ,9% ,9 4,7 17,5 5,0-7,4% 16,2 4,2 15,0 4,7-27,5% ,2 12,5 12,0 10,3 Industry Size % CAGR 13

14 Per employee range Market Size per Industry Engineering Firms 299,245 Development of enterprises by employee size Growth = 45.7% 2,4% 3,3% 0,0% 4,8% Large 4,0% ,3% ,5% Medium # Firms 175 0,6% 865 2,9% Growth ,9% 5,5% % Small 950 3,2% -3,1% Boutique ,8% 4,8% Freelance ,6% 59,5% Development of financials ( /x million) Development of employees (x000) Revenue Costs EBIT EBIT Margin External/hired employees Internal employees ,3% ,1% ,0% ,0% , ,0-1.2% , , % 84,8 87,5 85,5 83, Industry Size % CAGR 14

15 Per employee range Market Size per Industry IT Consultancies 299,245 Development of enterprises by employee size Growth = 107.8% 3,7% -0,6% 0,4% 3,6% 8,1% 32,4% Large ,4% Medium # Firms 110 0,8% 500 3,5% Growth ,1% 83,3% Small 445 3,1% 23,6% 5% Boutique ,5% 28,4% Freelance ,2% 134,5% Development of financials* ( /x million) Development of employees* (x000) Revenue Costs EBIT EBIT Margin Indicative Indicative ,5% ,4% ,8% ,9% 61,8 62,8 +1,8% 63,8 65, Industry Size * Indicative, financials and employee development estimated based on share within IT services market % CAGR 15

16 Per employee range Market Size per Industry Law Firms 299,245 Growth = 70.7% 13,1% 9,6% 11,2% ,8% Development of enterprises by employee size 5,5% 6,3% 2,6% Large Medium Small # Firms 50 0,6% 335 4,1% 570 7,0% Growth ,1% 6,3% 2,7% Boutique ,9% 36,9% 3% Freelance ,4% 105,2% Development of financials* ( /x million) Development of employees* (x000) Revenue Costs EBIT EBIT Margin Indicative 33,4 33,4 +0,7% 33,8 34,1 Indicative 20,0% ,5% ,2% ,1% Industry Size * Indicative, financials and employee development estimated based on share within legal market % CAGR 16

17 Per employee range Market Size per Industry Management Consulting Firms 299,245 Growth = 109.8% 23,1% ,4% ,4% ,2% Development of enterprises by employee size 10,2% ,1% ,0% Medium 890 1,0% 27,1% Large Small # Firms 0,1% 1,2% Growth ,0% 9,2% Boutique ,5% 31,7% Freelance ,1% 125,7% % Development of financials ( /x million) Development of employees (x000) Revenue Costs EBIT EBIT Margin External/hired employees Internal employees ,7% ,4% ,9% ,4% ,2 54,1 154,4 60,5 +4,1% 162,5 159,3 66,0 64,2 +9,3% 87,0 93,8 96,5 95, Industry Size % CAGR 17

18 Per employee range Market Size per Industry Market Research Firms 299,245 Growth = 33.9% 15,0% 26,2% ,4% Development of enterprises by employee size 3,0% -2,7% -8,3% ,7% Large Medium # Firms 30 0,5% 165 3,0% -25,0% Growth ,0% Small 170 3,1% -5,6% Boutique ,1% -10,2% Freelance ,3% 48,6% Development of financials ( /x million) Development of employees (x000) Revenue Costs EBIT EBIT Margin External/hired employees Internal employees 2% ,0% ,6% ,6% ,8% ,0 5,8 22,4 6,4-2,5% 22,2 6,4 20,4 5,9-10,5% 16,2 16,0 15,8 14, Industry Size % CAGR 18

19 Per employee range Market Size per Industry Notary Firms 299,245 Growth = 16.1% 1,0% 9,9% 2,8% -3,0% 7,4% 1,2% Development of enterprises by employee size -3,4% Large Medium # Firms 5 0,4% ,7% -50,0% -41,1% Growth Small ,7% 24,5% Boutique ,5% 44,4% Freelance ,7% 35,4% Development of financials* ( /x million) Development of employees* (x000) Revenue Costs EBIT EBIT Margin Indicative Indicative ,6 6,6 +0,7% 6,7 6,8 0.5% 19,9% ,5% ,2% ,1% Industry Size * Indicative, financials and employee development estimated based on share within legal market % CAGR 19

20 Per employee range Market Size per Industry Public Relations Firms 299,245 Growth = 36.4% 4,6% 6,2% ,5% ,2% Development of enterprises by employee size 2,3% 1,3% 5,8% Large Medium Small # Firms 5 0,2% 60 2,3% 75 2,8% Growth ,0% 9,1% 15,4% Boutique ,2% 22,7% Freelance ,6% 40,2% Development of financials* ( /x million) Development of employees* (x000) Revenue Costs EBIT EBIT Margin Indicative Indicative 1% ,7% ,4% ,9% ,4% 105 4,3 4,7 +4,1% 5,0 4, Industry Size * Indicative, financials and employee development estimated based on share within respective market % CAGR 20

21 Per employee range Market Size per Industry Scientific Research Firms 299,245 Growth = 56.3% 14,1% 12,4% ,0% ,7% Development of enterprises by employee size 2,9% 1,1% ,6% Large Medium # Firms 75 2,2% 225 6,7% Growth ,0% 32,4% Small 175 5,2% -2,8% Boutique ,7% 23,8% Freelance ,1% 77,1% Development of financials ( /x million) Development of employees (x000) Revenue Costs EBIT EBIT Margin External/hired employees Internal employees 1% ,3 5,4 38,4 5,1 +1,6% 38,5 39,1 4,3 4,9 +7,2% -4,1% ,4% ,9% ,6% ,9 33,3 34,2 34, Industry Size % CAGR 21

22 Per employee range Market Size per Industry Other Professional Services 299,245 Growth = 89.1% Development of enterprises by employee size 9,5% # Firms Growth ,5% 4,3% Large 365 0,5% -6,4% 11,5% 8,4% 3,3% ,8% Medium Small ,5% ,6% -9,3% -16,5% Boutique ,7% 3,2% Freelance ,8% 114,6% Development of financials* ( /x million) Development of employees* (x000) Revenue Costs EBIT EBIT Margin Indicative External/hired employees Internal employees Indicative No data available ,7% ,8% ,3% ,7 51,7 179,7 55,2 +6,1% 187,0 57,8 189,7 58,3 +22,7% 26% 107,0 124,5 129,2 131, Industry Size * Indicative only, ~20% of financials included based on data from other providers in the market, mainly legal % CAGR 22

23 Table of Contents Introduction 3 Professional Services Industry 5 Market Size per Industry 11 Key Findings 24 Appendix 31 23

24 Key Findings Professional Services market valued at 88 billion, employs ~ people Employees per Segment % Emp. Industry % Rev. Revenue per Segment /x billion % Public Relations 0.5% 0, % Notary 0.7% 0, % Architecture 1.2% 1, professionals % 4.2% Market Research Law 1.9% 1,7 3.7% 3,3 88 billion % Scientific Research 5.3% 4, % Advertising 7.2% 6, % IT Consultancy 9.0% 7, % Accounting 11.1% 9, % Engineering 14.0% 12, % Management Consulting 17.3% 15, % Other Professional Services 28.0% 24,6 24

25 Key Findings Market performance differs, as a result EBIT margins vary from 7% to 22%... Costs per Employee Revenue per Employee Profit per Employee Total Profit (x million) EBIT Margin Δ EBIT Margin - Accounting ,7% -0,5 Advertising ,7% 2,5 Architecture ,9% -2,5 Engineering ,9% -1,4 IT Consultancy ,9% 0,5 Law ,1% -0,9 Notary Management Consulting Data only available at higher level, estimate for both segments ,4% 3,7 Public Relations Market Research ,7% -0,3 Scientific Research ,6% -2,5 Other Professional Services ,3% -3,4 * data not accurate, Δ EBIT margin represents 25

26 Key Findings Also explained by different cost structures Staff Purchase Value of Sales Other Costs Housing Transport Total Costs ( /million) Change in Costs ( ) Breakdown of Costs () Accounting ,1% 59% 9% 22% 6% 4% Advertising ,2% 24% 58% 12% 3% 2% Architecture ,9% 57% 13% 21% 6% 3% Engineering ,5% 8% 56% 26% 5% 4% IT Consultancy ,6% 45% 31% 18% 3% 4% Law ,3% 52% 8% 29% 9% 2% Notary 523 2,3% Management Consulting ,5% Breakdown of costs only available at higher level, estimate for both segments 47% 26% 20% 3% 4% Public Relations 362 1,5% Market Research ,1% 41% 36% 17% 3% 3% Scientific Research ,8% 47% 21% 28% 4% 1% Other Professional Services ,4%* 28% 30% 37% 3% 1% * Growth represents period 26

27 Average EBIT Margin () Key Findings Average industry growth is strong, underpinned by a relatively high variation Management Consulting is the largest industry within professional services, followed by Engineering Architecture is the fastest growing industry, with Market Research the only segment that is contracting EBIT margins vary from -7% to +22%, with the majority of industry s performing between the 8% to 20% range 24% Notary Public Relations Law Management Consulting Accounting 16% Market Research Engineering Advertising Architecture 8% Other Professional Services IT Consultancy 0% Legend Scientific Research EBIT Confidence Level Low High Size of Market (x billion in ) 0,5 25 6bn -8% -10% 0% 10% 20% 30% 40% 50% 60% 70% Industry Growth (# Companies) 27

28 % freelancers in industry Key Findings Industry growth driven mainly by freelancers flocking into the market Nearly 86% of the professional services market consists of freelancers, with notary the only exception (<50%) The number of freelancers has over the past 5 years grown strongly, and even more than doubled in Architecture 95% Legend 90% 13k # of freelancers (x000; 2014) Management Consulting Public Relations IT Consultancy 85% Engineering Advertising Other Professional Services 80% Market Research Accounting 75% Scientific Research Architecture 70% Law 50% Notary Outliers 0% -10% 0% 10% 20% 30% 40% 50% 60% 105% Growth freelancers

29 Key Findings Compared to UK, Netherlands has significantly higher % of freelancers Growth Netherlands Employee size (2014) Other Freelancers + Boutique % Firms Industry United Kingdom % Firms Employee size (2014) Freelancers + Boutique Other Growth ,8% 6,3% 93,7% 9.9% Accounting 7.1% 79,5% 20,5% 16,2% 16,4% 4,5% 95,5% 9.7% Advertising 3.4% 82,4% 17,6% 32,4% 21,4% 6,5% 93,5% 2.1% Architecture 2.5% 81,9% 18,1% 30,0% 17,4% 6,6% 93,4% 10.0% Engineering 12.3% 88,8% 11,2% 18,8% 16,8% 7,4% 92,6% 4.8% IT Consultancy 14.7% 92,7% 7,3% 12,5% 29,6% 11,7% 88,3% 2.7% Law 52,3% 33,8% 66,2% 0.5% Notary 5.7% 73,8% 26,2% 7,1% Data only available at higher level, estimate for both segments 9,9% 2,3% 97,7% 30.5% Management Consulting 25.5% 93,5% 6,5% 25,2% 17,7% 6,6% 93,4% 1.9% Public Relations 0.6% 74,9% 25,1% 0,5% 15,4% 5,3% 94,7% 0.9% Market Research 0.7% 81,6% 18,4% 11,5% 25,9% 14,2% 85,8% 1.1% Scientific Research 0.8% 73,4% 26,6% 11,4% 11,2% 3,6% 96,4% 25.9% Other Professional Services 26.8% 85,4% 14,6% 13,7% Total

30 Table of Contents Introduction 3 Professional Services Industry 5 Market Size per Industry 11 Key Findings 24 Appendix 31 30

31 Appendix Contact and Authors Herikerbergweg 284 (7th floor) Dalí gebouw, Arena Boulevard 1101 CT Amsterdam, The Netherlands Tel: +31 (0) Internet: Authors Larry Zeenny Director of & Consultancy.uk Stephan Kersten Research Analyst at This document has been prepared with the utmost care yet the authors make no representation or warranty, express or implied, that the information is accurate or complete. Information, analyses and conclusions contained in the report are based (unless sourced otherwise) on the judgments of, and should not be construed as definitive results. does not accept any responsibility or liability with respect to this document. The information is copyright, and may not be published, copied or duplicated, in whole or in part, without the written permission of the authors. 31

32 Appendix Development of Total Dutch Enterprises Development of Enterprises per Industry Number of companies per sector % % % 88% 88% 11 sectors presented in Slide 6 88% 87% 12% Sector 9 small sectors bundled in Slide 6 % Growth % Growth small sectors bundled in Slide (0,37%) 0,04% 0,09% 0,06% (0,25%) 0,03% 0,06% 0,06% (0,24%) 0,03% 0,06% 0,06% (0,24%) 0,03% 0,06% 0,06% Other n.e.c. Mining and Quarrying Public Administration & Defense Electricity, Gas, Steam & Air Conditioning Supply -4,7% 0,0% 52,1% 130,0% -8,0% -3,0% 5,7% 12,4% 0,18% 0,10% 0,09% 0,09% Water Supply -25,5% 4,4% (12,5%) 2,7% 2,8% 4,4% 2,6% (11,8%) 2,5% 2,6% 3,8% 3,0% (12,0%) 2,4% 2,4% 3,5% 3,7% (12,1%) 2,3% 2,4% 3,5% 3,9% Real Estate Activities Transport and Storage Accommodation & Food Services Education 23,8% 21,7% 15,5% 119,9% 0,1% 2,2% 2,3% 8,4%

33 Appendix Development of Professional Services Development of Professional Services firms ( ) % segments bundled in Slide sectors presented in Slide ,0% 1,0% 1,6% 2,2% 3,2% 2,4% 2,5% ,7% 1,0% 1,6% 2,1% 3,2% 2,4% 2,4% ,3% 0,9% 1,6% 1,8% 3,2% 2,4% 2,3% ,7% 0,7% 1,6% 1,9% 3,1% 2,4% 1,9% ,6% 9,7% 0,7% 0,5% 1,6% 1,4% 2,0% 1,8% 3,1% 2,4% 2,4% 2,1% 1,8% 1,5% ,9% 0,5% 1,3% 1,9% 2,5% 2,1% 1,6% % 9,8% 0,5% 1,2% 1,9% 2,6% 2,0% 1,5% 2006 * 10,3% 0,7% 1,1% 1,2% 2,4% 2,0% 2,8% ,0% 0,7% 1,0% 1,2% 2,6% 1,8% 2,7% ,9% 0,6% 1,0% 1,2% 2,7% 1,7% 2,6% 10,1% 0,6% 1,0% 1,2% 2,7% 1,9% 2,8% 10,0% 0,6% 0,9% 1,2% 2,6% 1,9% 2,8% 9,6% 0,5% 0,9% 1,2% 2,3% 1,9% 2,7% 9,5% 9,2% 0,5% 0,5% 0,9% 0,9% 1,1% 1,1% 2,1% 2,2% 1,9% 2,1% 2,7% 2,7% Notary Public Relations Scientific Research Market Research Architecture Law * See Slide 35 in the Appendix for details 33

34 Appendix Intervals for Employee Size Ratio Analysis Mean Interval Estimate Employees per Segment % Emp. Industry Employee Estimate per Method % Public Relations professionals % 1.8% Notary Architecture Based on Ratio Analysis approach, however a different method would lead to slightly lower or higher estimate % 4.1% 4.8% Market Research Law Scientific Research % Advertising % IT Consultancy % Accounting % Engineering % Management Consulting % Other Professional Services

35 Appendix Change in Definition: 2007 In 2007 the CBS modified the way with which it registers enterprises in the Netherlands Before 2007 the CBS only counted companies that were considered economically active : companies in which at least one person worked 15 hours or more per week. From 2007 onwards the so-called Hour Criterion ( Urenciterium ) was discarded, leading to a large increase in the number of in-scope enterprises (+32%) The impact of the change had different implications per industry, overall it can be concluded that the definition alteration had a higher than average impact on the professional services industry (+40% vs. +32%) Development of total Dutch enterprises (2004 ) % See Slide 5 for details on the development of the total number of enterprises. See Slide 7 for an overview of the impact on the professional services industry

36 Appendix Data Quality? Example Management Consulting The accuracy of the research is to an extent dependent on data from CBS and KvK. An analysis from on ~1,000 records within Management Consulting reveals that the data is not entirely complete and/or accurate Data Completeness (50+ FTE firms) CBS % 489 According to the CBS, there are 450 management consulting firm with more than 20 FTE s. Data from, reconciled with the CBS data, shows that the actual number of firms is nearly 10% higher Incorrectly assigned; --> Not PS Incorrectly assigned; --> Other PS % 39% Firms registered in Management Consulting, however in practice they do not fall within the segment and even should not be classified as professional services. Examples include hotels, fitness companies, catering, child care, retailers, newspaper and more Data Quality Correctly Assigned Grey Area 49% Firms registered in Management Consulting, however in practice they would be better suited in other industries within professional services. In some cases most relevant category is not entirely clear due to multi-disciplinary business model and services Enterprises Assessed 36

37 - Market assessment of the Dutch professional services industry -