Professional services networks

Professional services networks are networks of independent firms who come together to cost-effectively provide services to clients through an organized framework. They are principally found in law and accounting. They may also be found in investment banking, insurance, real estate and architectural services. Any profession that operates locally, but has clients in multiple locations, are potential members of a network. This entry focuses on accounting, legal, multidisciplinary and specialty practice networks. Today members of these networks employ more than one million professionals and staff and have cumulative annual revenues that exceed $200 billion.

The accounting networks and associations developed first to meet the requirement of the SEC of public company audits. They include the well-known accounting networks like PwC, Deloitte, Ernst & Young and KPMG (also known as the Big 4 Audit Firms) as well as more than 30 other accounting networks and associations. They are highly structured entities.

The law firm network developed in the late 1980s. They include legal and law firm based multidisiplinary networks like Lex Mundi, World Services Group, TerraLex, Meritas (law), and the State Capital Group.

There are more than 175 known networks in law, 40 in accounting, and 20 specialty networks. Individual networks have revenues exceeding $20 billion.

Every network from accounting networks like PwC and KPMG to law firm networks like Lex Mundi and multidisciplinary networks like World Services Group(WSG) uses a “network disclaimer.” A network disclaimer states that the network members are independent firms that do not practice jointly and are not responsible for the negligence of each other. It further states that generally the network does not practice a profession or otherwise provide services to clients of the network’s members. This independence is the foundation of both network operations and governance.

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