Consulting Market Trends

 

Consulting Market Trends

Global consulting industry revenues (including HR, IT, strategy, operations, management and business advisory services) will be about $431 billion in 2014, according to Plunkett Research estimates. This represents reasonable growth from $415 billion during the previous year.

However, in recent years, corporate profits in general grew dramatically, meaning that executives are now more willing to authorize new consulting projects as long as they see the potential for a good return on the cost. For example, India’s leading consultancies have enjoyed substantial growth in employee count and revenues, as did most of the global consulting firms based in the U.S. and EU.

Positive factors for the consulting industry over the mid-term:

1) Continued growth in health care expenditures and significant changes in health care coverage are creating demand for consulting projects. This includes a focus on digital health records and a dramatic need for greater efficiency and cost control.

2) Consultancies that focus on projects that clearly reduce business costs and enhance operating profits in a reasonably short period of time will find a ripe corporate market (such as consultants who focus on cash flow enhancement, supply chain efficiency and manufacturing efficiency).

3) Vast new labyrinths of government regulation in the U.S. and in the UK/EU are creating numerous opportunities for consultants who can show companies how to navigate rapidly changing relationships between government and industries, or deal with government oversight, particularly in financial services, environmental matters and health care.

4) Consultants who assist firms in lowering employee benefits costs are in high demand.

5) Consultants and advisors for corporate expansion into emerging markets, information technology and mergers and acquisitions will be in high demand.

6) Nations in the Middle East remain keen to modernize, expand key industries such as air transportation and develop new services and economic opportunities for citizens. These desires will continue to generate excellent opportunities for a wide variety of consulting companies.

Global consulting industry revenues (including HR, IT, strategy, operations, management and business advisory services) will be about $431 billion in 2014, according to Plunkett Research estimates. This represents reasonable growth from $415 billion during the previous year.