I am personally pleased to see that Fondia’s so-called project sales have started to grow. The decline in recurring business can certainly be explained by the same reasons as in other expert sectors: clients are striving to cut costs across the board by reducing “unnecessary” recurring services and are instead purchasing services in a targeted manner for core projects where their own expertise is insufficient. Client companies are surely making increasing use of constantly evolving AI solutions for reviewing contracts and other routine tasks of the type provided by Fondia’s recurring services.
Through successful project delivery, one could also think that new sales of recurring services are possible, in which case I assume that, with a slight delay, the decline will level off or even turn into growth.
Furthermore, it feels as though the recurring service concept has made Fondia somewhat complacent over time. Surely experts should be engaged in interesting tasks instead of waiting for mundane work, even if that could theoretically provide a steady stream of income.
One could assume that we have now passed the worst of the downward curve and that from here on out, the direction is finally upward. The speed of this shift will then be determined by the level of ambition and the full utilization of their potential. If the pace does not increase, they should at least consider optimizing their office space solutions to match the current level of operations.