Management consultants’ revenues have soared by over a third in just two years as a result of large-scale projects in construction, property, transport and financial services, according to the latest figures from the Management Consultancies Association.
The MCA report revealed that consulting revenues have grown by 35% in only two years, fuelled mainly by the expansion of public-private partnerships (PPP) and a renewed interest in outsourcing.
IT consultancy contributed a 17% growth in revenues since the fourth quarter of 2003 while outsourcing generated 23% growth in revenues over the same period.
Revenues for MCA member firms, which together account for 60% of the UK sector, were £1.5bn in the final quarter of 2004, up from £1.14bn in 2003.
Management consultants were also found to be playing an increasingly important role in the delivery of large-scale transport and infrastructure projects in the UK, such as the £10bn transport improvements proposed as part of London’s 2012 Olympics bid.
A number of firms are closely involved in the Olympics. Atos Origin is the worldwide IT partner for the 2006 and 2010 Winter Games and the 2008 Beijing Olympics. And Accenture is one of the five premier partners for the London bid.
Outgoing MCA president, and Hedra chairman, Lynton Barker said: ‘These major public transport challenges are further examples of collaborative working between consulting firms. The formation of consortia is now more prevalent ð a good example being the Transys consortium on the Oyster card project in London. Consultants really enjoy this kind of work, which helps develop innovative solutions and involves working alongside the client staff affected ð including adapting to the 24-hour shift patterns this demands.’
A new head of solutions, Aidan Brennan, has been appointed at KPMG UK
The second largest improvement in ‘significant’ levels of financial distress since the EU Referendum was in professional services, found research from Begbies Traynor
Just one half of UK practices have implemented a pricing structure around auto enrolment implementation and advice - with many suffering increased costs
Deloitte's north-west Europe foray; BDO, Smith & Williamson investment paths; Shelley Stock Hutter; and Wilkins Kennedy discussed by editor Kevin Reed on our Friday Afternoon Live broadcast