PracticeConsultingSigns of recovery for consulting industry

Signs of recovery for consulting industry

After a three-year downturn, the consulting industry is experiencing significant signs of recovery, a Management Consultancy top 75 consulting firms' survey has revealed.

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Mid-tier and small firms have made significant gains in the last three years, the study showed.

Capita and Methods Consulting gained the biggest ground in fee income during the downturn years between 2002 and 2003, according to Accountancy Age’s sister title.

According to spokespeople from both firms, they have increased fee income due to ‘competitive pricing’ and ‘sector-specific focus’, due mainly to the rise in public sector consulting including big spending clients such as the NHS.

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During tough times, Capita has increased its fee income by an estimated £15m from £145m to £160m, while Methods Consulting saw its fee income rise by £10.5m from £24.5m in 2002 to £35m in 2003.

Miles Garside, local government business manager for Methods Consulting, said: ‘We have had some big wins in the public sector including a £6m deal with the NHS.’

Methods Consulting was the biggest winner within the mid-tier sector, while Hedra came a close second seeing its fee income rise by £7m from £30.5m to £37.5m. The biggest falls were seen at recently rebranded Capgemini, down £82m from an estimated £332m in 2002 to £250m in 2003.

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