More gloom for the industry as members of the Management Consultancies Association have reported revenues of £1,065m for the third quarter of 2001 compared with £1,106m in the second quarter, a fall of 3.7%. This was the first contraction in MCA revenues since the first quarter of 1999.
Having enjoyed double-digit annual growth for the last 10 years, the consultancy industry is now feeling the impact of the economic slowdown.
Income from management consultancy services declined by 6.8% but the most significant change was a shift from IT consultancy, which decreased by 21.5%, to outsourcing consultancy, which increased by 25.4%. This suggests that clients are outsourcing non-core activities to reduce costs.
Year on year growth, however, remains healthy with income 11.6% higher than at the same time in 2000.