Professional Services Tariff Impact Analysis for Procurement

While traditional tariffs primarily target physical goods, the Professional Services category is experiencing significant indirect impacts due to escalating trade tensions, cross-border service restrictions, and cost pressures on service providers with global delivery models.

Key Findings

• Indirect Cost Impact 8-14% cost increase on professional services delivered via global delivery models, with immigration and visa
  restrictions adding 15- 25% to costs for onshore augmentation of offshore resources
• Compliance Costs Digital services taxes and cross-border data flow restrictions creating additional 5-12% in compliance costs, while
  specialized technical services with manufacturing linkages experience 10-18% cost increases
• Mitigation PotentialContract structure modifications can mitigate 20-30% of potential impact through multi-region delivery models,
  automation initiatives, and restructured contracts with tariff escalation clauses