The Hackett Group, Inc. (HCKT): PESTLE Analysis [Nov-2025 Updated]

You're looking past the stock ticker and into the operational DNA of The Hackett Group, Inc. (HCKT), and that's smart. The direct takeaway is this: While Q3 2025 revenue of $73.1 million missed consensus, the firm is aggressively pivoting to Generative AI (Gen AI) to capitalize on the massive client shift toward cost-driven, short-cycle transformation projects. The macro-economic chill is a headwind, but it's also creating a huge demand for their core efficiency services, so let's map the risks and the clear actions you should watch for in their external environment.

Political Factors: Geopolitics and Public Sector Spend

Geopolitical instability, especially in Eastern Europe and Asia, isn't a direct revenue driver for Hackett, but it raises the operational risk for their multinational clients. This forces those clients to re-evaluate global supply chains and sourcing decisions, which, honestly, creates a consulting engagement opportunity for Hackett's procurement advisory services. Also, increased government focus on digital infrastructure creates a clear, though smaller, public sector consulting opportunity. The regulatory stability in key markets like the US and EU still supports long-term contract predictability, which is a good anchor for their subscription-based executive advisory programs.

Watch for US trade policy shifts; they change client supply chain decisions overnight.

Economic Factors: Cost-Cutting is the New Growth

The current economic climate is a double-edged sword. On one side, high inflation and elevated interest rates are constraining client capital expenditure (CapEx) on large, multi-year IT transformation projects. This is a primary reason why Q3 2025 GAAP net income fell to $2.55 million. But, on the other side, corporate cost-reduction mandates are driving high demand for Hackett's core efficiency and benchmarking services-clients desperately need to find 10% to 15% in savings, and Hackett tells them where to look. Here's the quick math: clients favor short-term, high-ROI projects that promise immediate cash flow relief, and that's exactly where Hackett's rapid assessment model fits. Still, the firm must manage its own rising labor costs, which pressure their adjusted gross margin, which was 42.6% in Q3 2025.

The economic squeeze makes Hackett's benchmarking a necessity, not a luxury.

Sociological Factors: The War for Talent and ESG

The persistent talent scarcity in specialized functions like IT, finance, and procurement is a major tailwind for Hackett's managed services business. If you can't hire a world-class finance team, you outsource the process. Plus, the widespread adoption of hybrid work models requires clients to completely re-engineer their HR and finance operating models, which is a direct service line for Hackett. Growing corporate emphasis on Environmental, Social, and Governance (ESG) is defintely creating new, high-margin advisory service lines, too. To be fair, managing generational workforce shifts also means Hackett needs to sell new change management and training strategies, which is a slower-burn revenue stream.

Talent scarcity forces clients to buy the expertise they can't hire.

Technological Factors: The Gen AI Pivot

This is the most critical factor. The accelerated adoption of Generative AI (Gen AI) forces clients to rapidly re-engineer core business processes for efficiency, which is a massive opportunity that Hackett is betting big on. They are aggressively investing in their AI XPLR platform, which is why they reported restructuring costs of $3.1 million in Q3 2025. What this investment hides is the risk: automation of transactional back-office work could reduce the need for traditional, human-led process improvement consulting, meaning they must successfully transition clients to Gen AI implementation. Increased client investment in cybersecurity consulting to protect expanding digital footprints is also a clear, immediate revenue stream.

Gen AI is the biggest threat and the biggest opportunity, all at once.

Legal Factors: Compliance Complexity is a Service Line

Fragmented global data privacy laws, like US state-level regulations and EU updates, are not a threat to Hackett; they are a compliance consulting goldmine. The same goes for changes in international corporate tax frameworks, suchably the OECD Pillar Two, which complicate client financial reporting and require expert advisory. New labor classification rules for gig workers and contractors, while affecting Hackett's own workforce model, also create a new advisory service for their clients. Increased regulatory scrutiny on corporate governance and financial transparency simply drives more demand for their advisory services, especially in the finance function.

When regulations get complicated, consultants get paid.

Environmental Factors: Sustainability as a Mandate

Client pressure to meet ambitious net-zero commitments drives demand for sustainability reporting and supply chain consulting, which aligns well with Hackett's core procurement and operations benchmarking. New mandatory climate-related financial disclosures, such as the SEC rules, create a clear, non-negotiable compliance service offering. Plus, the focus on operational resource efficiency aligns directly with Hackett's core benchmarking services. Physical climate risks are forcing clients to invest in supply chain resilience planning, which is another high-value consulting niche.

ESG is moving from a nice-to-have to a must-comply, and that's good for business.

The Hackett Group, Inc. (HCKT) - PESTLE Analysis: Political factors

Geopolitical instability in Eastern Europe and Asia raises operational risk for multinational clients.

The persistent geopolitical instability, particularly the fallout from the conflict in Eastern Europe and ongoing tensions in Asia, is not just a headline; it is a direct operational risk for The Hackett Group's multinational clients. This uncertainty forces companies to rethink global supply chains, creating an immediate need for our advisory services in risk mitigation and working capital optimization.

Our 2025 European Working Capital Survey quantified this risk: companies built significant inventory buffers to manage supply chain and geopolitical risks, causing the Cash Conversion Cycle (CCC) to worsen by 3% to 44.8 days in 2024. Days Inventory Outstanding (DIO) jumped 4% to 68.9 days, its highest level in a decade. That massive inventory pile-up traps capital, and our job is to help them use Generative AI (Gen AI) and process redesign to free that cash up.

Shifting US trade policies affect client supply chain and global sourcing decisions.

The ambiguity surrounding US trade policies, especially tariffs, directly impacts the cost structure and sourcing strategies of our global client base. This political volatility turns finance and procurement into a high-stakes game of scenario planning. Honestly, the constant policy changes are a consulting opportunity.

The tariff uncertainty is a major factor exacerbating economic concerns, with 75% of supply chain leaders in our 2025 Key Issues Study considering a potential economic downturn or recession a moderate or major concern. This pressure is so real that the total 2025 import cargo volume for the US is expected to drop by 15% or more year-over-year, as businesses pull back on global sourcing commitments due to fluctuating tariff rates. This translates into a substantial consulting mandate to help clients restructure their supply chains and optimize the $1.7 trillion that remains trapped in excess working capital across the top 1,000 US publicly traded nonfinancial companies.

Increased government focus on digital infrastructure creates public sector consulting opportunities.

Governments, especially in the US and Europe, are aggressively funding digital infrastructure and modernization, which aligns perfectly with The Hackett Group's core Gen AI and digital transformation offerings. This pivot to digital in the public sector is a clear, near-term growth avenue for our consulting practice.

In the US, federal IT and infrastructure spending is highly elevated. Civilian agency IT budgets are projected to reach $76.8 billion in Fiscal Year 2025 (FY2025), an 8.1% increase over two years. A significant portion is dedicated to cybersecurity, with civilian agencies allocating an estimated $13 billion in FY2025-a 15% increase over two years-focused on mandates like Zero Trust Architecture (ZTA) and cloud migration. Our expertise in Gen AI-enabled process redesign and digital world-class performance is exactly what these agencies need to spend that budget effectively.

Regulatory stability in key US and European Union markets supports long-term contract predictability.

While the US market presents some political uncertainty, the European Union's move toward a harmonized Single Market, though complex, creates a predictable framework for long-term compliance and transformation contracts. The high volume of new, mandatory regulation mandates multi-year consulting engagements.

The regulatory environment in the EU is characterized by a wave of new, non-negotiable compliance deadlines that drive demand for our advisory services, particularly in risk and digital governance. For example, the Digital Operational Resilience Act (DORA) becomes fully applicable on January 17, 2025, and the EU Data Act comes into full force on September 12, 2025. Plus, the EU AI Act requires compliance from General-Purpose AI model providers by May 2025. These deadlines create a stable, multi-year pipeline of work for our clients who need to embed these new rules into their core systems and processes.

The Hackett Group, Inc. (HCKT) - PESTLE Analysis: Economic factors

You are operating in a fascinating, yet challenging, economic climate in 2025. The core takeaway is this: while corporate cost-cutting mandates are driving massive demand for The Hackett Group's core services, high inflation and elevated interest rates are simultaneously squeezing your own margins and making clients hesitant to commit to the large, multi-year transformation projects that were once your bread and butter. It's a classic consulting paradox-demand for efficiency is high, but the price of delivering it is rising.

Corporate cost-reduction mandates drive high demand for Hackett's efficiency and benchmarking services.

The prevailing atmosphere of economic uncertainty has forced Chief Financial Officers (CFOs) and Chief Procurement Officers (CPOs) to prioritize immediate, measurable cost reduction. This is your sweet spot. Your 2025 U.S. Working Capital Survey, for instance, identified a staggering $1.7 trillion in excess working capital trapped within the top 1,000 U.S. publicly traded nonfinancial companies. That's 35% of their gross working capital, a huge, addressable opportunity. Finance leaders ranked working capital optimization as their top priority for 2025, a significant shift from prior years, which directly fuels demand for your benchmarking and advisory services.

• $1.7 trillion: Excess working capital opportunity in top 1,000 U.S. firms.
• Finance leaders' top 2025 priority: Working Capital Optimization.
• Digital World Class organizations operate at 21% lower cost than peers.

High inflation rates increase the firm's own labor costs, pressuring consulting margins.

While you help clients cut costs, your own operational expenses are under pressure from persistent inflation. Consulting is a people business, so rising labor costs-driven by a tight market for specialized talent, especially in Generative AI (Gen AI)-directly compress your adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margins. We saw this pressure in the Q2 2025 financial results: Adjusted Selling, General, and Administrative (SG&A) expenses rose to $18.2 million, or 23.4% of revenues before reimbursements, up from $16.8 million, or 22.1% in the prior year's quarter. This year-over-year increase of approximately 8.3% in absolute dollar terms is a clear headwind. You're paying more to employ the talent that delivers the cost savings.

Elevated interest rates constrain client capital expenditure on large, multi-year IT transformation projects.

High interest rates make the cost of capital expensive, forcing clients to scrutinize every dollar of long-term capital expenditure (CapEx). When borrowing costs are high, a multi-year, nine-figure IT transformation project with a five-year payback period looks much riskier. To be fair, CapEx for the top U.S. firms did increase by 5% in 2024, but this spending is highly concentrated in strategic areas like AI infrastructure and supply chain resilience, not necessarily in the broad enterprise resource planning (ERP) or back-office overhauls that drove past consulting cycles. This shift is why your Oracle Solutions segment revenue was expected to be down by over 20% year-over-year in Q3 2025.

Continued economic uncertainty forces clients to favor short-term, high-ROI projects over long ones.

Economic uncertainty is the dominant theme, with 75% of supply chain leaders citing it as a major risk in 2025. This risk aversion translates directly into shorter project cycles. Clients are demanding a clear, fast Return on Investment (ROI). This is a strong driver for your pivot to Gen AI-driven solutions, like the AI XPLR platform, because they promise 'high ROI Agentic AI solutions with unmatched speed and detail.' The market is moving from a 'Big Bang' transformation model to a series of high-speed, high-impact sprints. The overall cautious environment is reflected in your Q3 2025 total revenue before reimbursements, which decreased 7% year-over-year to $72.2 million.

Here's the quick math on the economic trade-offs you're managing:

The immediate action is to double down on the Gen AI-driven, high-ROI offerings; they are the only projects clients are defintely funding right now.

The Hackett Group, Inc. (HCKT) - PESTLE Analysis: Social factors

Persistent talent scarcity in specialized IT, finance, and procurement functions increases demand for managed services.

You are seeing a structural shift where the internal talent pipeline simply cannot keep pace with the demand for specialized skills, and this is a huge tailwind for The Hackett Group's managed services business.

Honestly, the talent shortage in core corporate functions is a crisis, not a cycle. In 2025, over two-thirds (69%) of organizations report significant difficulties filling full-time, regular positions. For The Hackett Group's clients in Procurement, the firm's own 2025 Key Issues Study highlighted a critical gap: a 10% increase in workload against only a 1% increase in staffing. This is why companies are turning to external partners for specialized roles like those involving data analysis (36% of new skill needs), AI/machine learning (31%), and cybersecurity (21%).

The solution isn't just hiring; it's outsourcing the entire operating model. The Hackett Group's Application Managed Services and Gen AI Consulting directly capitalize on this scarcity, offering a reliable, scalable workforce that clients cannot build internally fast enough. Access to specialized skills is now a primary driver for using external talent, cited by 62% of executives in 2025.

Widespread adoption of hybrid work models requires clients to re-engineer their HR and finance operating models.

The hybrid model is no longer an experiment; it's the default, and it forces a complete overhaul of how work gets done, which is a massive consulting opportunity.

As of late 2025, the hybrid model is stable, with 52% of remote-capable employees in the U.S. working hybrid. This shift is reshaping cost structures, with 90% of CEOs reporting that adopting a hybrid model is a direct reason for reduced costs. However, realizing those savings requires re-engineering. Half of all organizations have reduced their office footprint, and the finance and business services sectors are leading that real estate reduction.

This means finance and HR operating models must be rebuilt around asynchronous work, digital collaboration, and performance measurement that isn't based on office presence. The Hackett Group helps clients with this exact operating model redesign, moving them from old, location-based processes to a new, fully digital Digital World Class framework.

Growing corporate emphasis on Environmental, Social, and Governance (ESG) creates new advisory service lines.

The move from voluntary ESG reporting to mandatory compliance is creating a boom market for advisory services, and The Hackett Group is well-positioned to capture a piece of it.

The global ESG & Sustainability Advisory market is a massive, high-growth area, valued at approximately $43.2 billion in 2025, and it's projected to nearly double to $82.4 billion by 2035. This growth is anchored by stricter regulations and investor demands for transparency.

For a firm like The Hackett Group, this translates into new, high-margin service lines that integrate ESG into core functions like procurement and finance. They are helping clients with:

• Integrating ESG into procurement strategy and compliance.
• Building frameworks for social impact measurement and reporting.
• Advising on the governance aspect (the 'G') for risk and compliance.

The demand is defintely there, and it's driven by compliance, not just goodwill.

Generational shifts in the workforce necessitate new change management and training strategies for clients.

The generational handoff is in full swing, and it requires a complete rethink of talent management, training, and leadership development for their clients.

The workforce is fundamentally changing: Generation Z now outnumbers Baby Boomers at work. By 2030, Gen Z is estimated to become 30% of the workforce. This generation has different expectations, prioritizing work-life balance and a strong alignment with company values. They also have a strong preference for hybrid work, with 65% preferring hybrid arrangements over fully remote or fully in-office.

This forces The Hackett Group's clients to invest heavily in upskilling and change management, which is a core part of the firm's offerings. The need to reskill is enormous: at least 54% of all employees required significant reskilling by 2022, a foundational challenge that continues to drive the need for new Learning & Development programs. The firm must help clients bridge the gap between the experience of older generations and the digital fluency of the younger ones.

Here's the quick math on the shift in client focus for The Hackett Group's advisory services:

Finance: draft a proposal for a new 'Gen AI-Ready Workforce' advisory package by the end of the quarter.

The Hackett Group, Inc. (HCKT) - PESTLE Analysis: Technological factors

Accelerated adoption of Generative AI forces clients to rapidly re-engineer core business processes for efficiency.

The shift to Generative AI (Gen AI) is the single biggest technological driver for The Hackett Group in 2025. You see this in the numbers: Gartner projects global spending on GenAI will hit $644 billion this year, a 76% leap from 2024. This isn't a pilot program anymore; nearly 45% of IT decision-makers now rank Gen AI tools as their top budget priority, even over security.

The Hackett Group has pivoted hard to capitalize, rebranding as a Gen AI consultancy and launching its proprietary AI XPLR V4 platform in September 2025. This new platform is designed to identify and design 'agentic workflows,' which helps clients realize value with unprecedented speed. This focus is defintely a necessary move to capture the market, given that 89% of executives are now advancing Gen AI initiatives, a massive jump from just 16% a year ago.

Here's the quick math on the market shift:

Continued cloud migration and Enterprise Resource Planning (ERP) optimization projects sustain demand for implementation services.

While Gen AI grabs the headlines, the foundational work of cloud migration and Enterprise Resource Planning (ERP) optimization continues to drive a significant portion of The Hackett Group's revenue. Clients still need to get their core systems right before they can plug in AI effectively. The demand for these services is mixed but still substantial.

In the second quarter of 2025, the Global Services & Business Transformation (S\&BT) segment, which includes many of these projects, saw revenues before reimbursements rise 5% year-over-year. However, the Oracle Solutions segment saw revenues before reimbursements decline 7.5% in Q2 2025, while the SAP Solutions segment was up 11% in the same period. This shows a clear shift in where the major enterprise application spending is happening, a crucial detail for their consulting resource allocation. You have to follow the client's platform choice.

Increased client investment in cybersecurity consulting to protect expanding digital footprints is defintely a tailwind.

The rapid deployment of Gen AI and cloud services creates a much larger, more complex digital footprint for clients, which translates directly into a greater need for cybersecurity consulting. This is a critical tailwind for The Hackett Group. Security and compliance are the biggest potential blockers for enterprise adoption of Large Language Models (LLMs).

While Gen AI is the top budget priority for 45% of IT decision-makers, security tools still hold the top spot for 30% of them. The complexity of integrating new AI models with existing, often legacy, systems means the risk of data breaches and compliance failures is higher than ever. The Hackett Group's advisory role is essential here, helping clients build a 'robust framework' for their AI-driven processes, though I won't use that corporate filler.

Automation of transactional back-office work reduces the need for traditional human-led process improvement.

The very technology The Hackett Group promotes-Gen AI and automation-is simultaneously reducing the need for traditional, human-led process improvement consulting in transactional areas like finance and accounting. This is a double-edged sword. The good news is that finance leaders are embracing this change: AI deployment in the finance function is expected to grow 20% this year.

Early Gen AI gains in finance are already showing productivity improvements, cost reductions, and quality enhancements exceeding 10% for some companies. As these transactional tasks become automated through tools like the AI XPLR V4 platform, The Hackett Group must continuously shift its consulting focus up the value chain, from simple process mapping to complex strategic transformation and AI implementation. This is why their consultant headcount dropped from 1,382 in the previous quarter to 1,317 at the end of Q3 2025, reflecting a necessary internal restructuring to focus on higher-value Gen AI talent.

• Gen AI is driving productivity gains exceeding 10% in finance.
• Finance AI adoption is forecasted to grow 20% in 2025.
• Consultant headcount decreased by 65 from Q2 to Q3 2025, signaling a shift in required skill sets.

The Hackett Group, Inc. (HCKT) - PESTLE Analysis: Legal factors

Stricter, fragmented global data privacy laws (e.g., US state-level, EU updates) increase compliance consulting needs.

You are facing a compliance environment where data privacy is no longer a simple IT checklist; it is a board-level risk that drives demand for high-end advisory services. Global regulators are stepping up enforcement, and the fragmentation of laws is a huge pain point for multinational clients.

In 2024, fines under the EU's General Data Protection Regulation (GDPR) alone exceeded €2.1 billion, and a single data breach now averages $4.5 million per incident. This is why The Hackett Group's clients need help navigating the patchwork of US state laws-like California's CCPA/CPRA, Colorado's Privacy Act, and Virginia's CDPA-while simultaneously preparing for the full operationalization of India's Digital Personal Data Protection (DPDP) Act in 2025.

The core issue is cross-border compliance. One clean action item: embed privacy into your corporate governance framework now.

• EU GDPR 2.0 updates emphasize AI-driven decision transparency.
• India's DPDP Act introduces penalties up to INR 250 crore.
• Firms with advanced privacy programs see 2.5× faster innovation cycles.

Changes in international corporate tax frameworks, like the OECD Pillar Two, complicate client financial reporting.

The global tax landscape has fundamentally changed with the Organisation for Economic Co-operation and Development (OECD) Pillar Two framework, which mandates a global minimum corporate tax rate of 15% for large multinational enterprises (MNEs). This isn't just a tax problem; it's a massive financial reporting and system implementation challenge for companies with consolidated revenues exceeding EUR 750 million.

The Income Inclusion Rule (IIR) is already in effect in many jurisdictions, and the Undertaxed Profits Rule (UTPR) is coming into effect in 2025 across the EU and the UK, adding a new layer of cross-border complexity. Here's the quick math: a client's effective tax rate (ETR) falling below 15% in any jurisdiction triggers a top-up tax calculation, requiring a complete overhaul of their tax compliance and financial data collection systems, which is a direct revenue opportunity for The Hackett Group's financial advisory and technology services.

New labor classification rules for gig workers and contractors affect the firm's own workforce model.

The continuous regulatory flux around classifying independent contractors versus employees is a significant operational risk, especially for a consulting firm that relies on a flexible talent pool. In the US, the Department of Labor (DOL) has signaled a change in its enforcement approach as of May 1, 2025, moving away from the 2024 rule and back to the nuanced, seven-factor 'economic reality' test. This shift creates legal uncertainty.

The consulting/business/IT services industry is specifically cited as one of the sectors most likely to experience a significant impact from these classification changes. Misclassifying a worker can lead to costly litigation, tax penalties, and liability for back pay and benefits. The DOL's renewed focus on economic reality means that even well-written contracts are secondary to the actual working relationship. Honestly, this is a legal headache that requires defintely a proactive internal audit of all contractor relationships.

Increased regulatory scrutiny on corporate governance and financial transparency drives demand for advisory.

Boards are under intense pressure to oversee not just financial performance but also digital risk, data ethics, and cybersecurity, turning governance into a complex, multi-faceted challenge. For instance, the UK's updated Corporate Governance Code, effective January 1, 2025, requires companies to implement transparent corporate reporting and robust risk management systems. This drives a need for advisory services to implement new internal controls.

In the US, the SEC's 2025 examination priorities include assessing registrants' use of emerging technologies like Artificial Intelligence (AI) and reviewing their cybersecurity measures. What this estimate hides is the complexity of AI governance, which is a rapidly expanding area of compliance. Furthermore, while the Corporate Transparency Act (CTA) beneficial ownership reporting (initially due Jan 1, 2025) is currently paused due to a nationwide injunction, the underlying trend toward greater financial transparency remains strong. This scrutiny means The Hackett Group's advisory business, which helps clients build 'Digital World Class' performance, is perfectly positioned to capitalize on this regulatory push.

The Hackett Group, Inc. (HCKT) - PESTLE Analysis: Environmental factors

Client pressure to meet ambitious net-zero commitments drives demand for sustainability reporting and supply chain consulting.

You are seeing a massive shift where sustainability is no longer a corporate social responsibility footnote; it is a hard-dollar mandate driven by investors and regulators. The pressure to meet net-zero commitments is directly translating into demand for The Hackett Group, Inc.'s expertise in supply chain decarbonization and reporting.

The Global Net-Zero Consulting Market is projected to be valued at $10.5 billion in 2025, and a significant portion of that is for carbon accounting and reporting services, which alone is expected to create a market opportunity of approximately $5 billion this year. This is a clear, immediate revenue stream for a firm like The Hackett Group, Inc. that can integrate environmental metrics into core financial and operational processes.

The Hackett Group, Inc.'s 2025 Procurement Agenda highlights that procurement leaders are now required to embed sustainability into purchasing, focusing on lowering the environmental impact of their supplier base. This means clients need help with complex Scope 3 emissions (value chain emissions) reporting and supplier engagement, which aligns perfectly with The Hackett Group, Inc.'s core procurement and supply chain advisory services.

New mandatory climate-related financial disclosures (e.g., SEC rules) create a compliance service offering.

While the U.S. Securities and Exchange Commission (SEC) climate disclosure rules have faced legal challenges and were stayed in 2025, the underlying regulatory wave is still crashing, creating a huge compliance service offering. Honestly, the uncertainty itself creates a consulting need.

Large Accelerated Filers (LAFs) still face compliance deadlines starting in fiscal year 2025 for certain disclosures, and the global convergence toward standards like the EU's Corporate Sustainability Reporting Directive (CSRD) means multinational clients must act now. The Hackett Group, Inc. is positioned to offer a phased approach to Environmental, Social, and Governance (ESG) compliance, helping clients streamline the data management required for these complex, non-financial disclosures.

The demand is for more than just reporting; it's about integrating climate risk into financial statements. This is where The Hackett Group, Inc.'s deep finance and technology consulting expertise becomes critical.

• Integrate climate risk into financial estimates and assumptions.
• Quantify the financial impacts of severe weather events in footnotes.
• Establish governance and internal controls over climate data.

Focus on operational resource efficiency aligns directly with Hackett's core benchmarking services.

The drive for environmental resource efficiency-think less water, less energy, less waste-is fundamentally a cost-reduction exercise. This aligns perfectly with The Hackett Group, Inc.'s decades-long core business of operational benchmarking and achieving Digital World Class® performance, which is defined by top-quartile efficiency and effectiveness.

For example, The Hackett Group, Inc.'s research shows that top-performing organizations are able to operate at significantly lower costs. In the broader context of cost optimization, their clients' efforts helped drive a 6% increase in Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin in 2024. Moreover, their 2025 Working Capital Survey indicates that Generative AI (Gen AI) can help companies unlock an estimated $1.7 trillion in excess working capital, a clear proxy for resource and process efficiency.

The Hackett Group, Inc. applies its proprietary benchmarking database, which holds insights from over 27,000 engagements, to pinpoint where clients can cut waste and improve resource utilization. This is just smart business, defintely not just a green initiative.

Physical climate risks are forcing clients to invest in supply chain resilience planning.

Physical climate risks-like extreme weather events, droughts, and flooding-are no longer abstract. They are directly impacting supply continuity, which The Hackett Group, Inc.'s 2025 Procurement Agenda identifies as a top priority. The Global Supply Chain Resilience Market is estimated at $34.17 billion in 2025, underscoring the urgency of this challenge.

The Hackett Group, Inc. is advising clients to move from reactive to proactive risk management, which involves advanced analytics and scenario planning to anticipate disruptions. Across their client base, 81% of organizations have already implemented supply risk management solutions. This is driving a clear investment trend: companies are increasing their capital expenditures by 5% for investments in AI infrastructure and supply chain resilience, according to The Hackett Group, Inc.'s 2025 Working Capital Survey.

This is a table showing the market opportunity for The Hackett Group, Inc.'s environmental-adjacent services in 2025.