In this episode of The Consultant’s Way Podcast, Dean and Anthony sit down with Bo DiMuccio, head of the Professional Services practice at TSIA and one of the most respected voices in the industry. Together, they unpack the findings of TSIA’s 2025 State of Professional Services report—and the reality check is as eye-opening as it is insightful.

Bo shares why, despite ongoing disruption, embedded professional services organizations still look strikingly similar to how they did five years ago—and why that's both a strength and a warning sign. The conversation dives deep into the paradox of PS leaders trying to “keep the lights on” while also transforming their operating models to support subscription revenue, AI integration, and scalable delivery.

They explore why strategies around AI and recurring service models are gaining attention, but implementation is lagging, with only 3% of PS leaders rating their AI maturity as high. Bo also highlights the top four challenges PS leaders are grappling with today, which split evenly between operational efficiency and long-term transformation.

Throughout the episode, Bo calls out a critical problem: too many PS leaders are operating without a documented strategy, leading to misalignment, unrealistic financial expectations, and missed opportunities. He explains how lacking a clear mission often forces PS teams into reactive mode, distorting their business models and creating friction with executive stakeholders.

Whether you're trying to build a scalable PS function, make sense of AI’s role, or just stop being the “tail” in a product-led org, this episode is packed with data, experience, and practical advice to help PS leaders take control of their future.