Revenues continue to rise for MCA members
In a further sign that the consulting market is making positive progress, almost three-quarters of Management Consultancies Association members reported increased revenues in Q2 2004.
Some 73% of MCA members reported higher revenues, while in the last 12 months, revenues increased across the consultancy sector by nearly a sixth, with income for MCA firms in Q2 2004 reaching £1,436m.
Link: MCA firms keep on growing
It said that the continued growth within the consulting sector had been ‘assisted by the high volume of repeat business reported by MCA members, with 60% of new business coming from existing clients’. It added that this backed up a further MCA survey that discovered that 76% of organisations that used consultants found they ‘met or exceeded their expectations for increasing productivity’.
The MCA survey also highlighted that while a large proportion of members reported higher revenues, there was also a 2.7% decline on the previous quarter?s revenues. It said that this was down to the ‘phasing of contracts in outsourcing-related consulting work in a small number of firms’ but that interim figures suggested that ‘the growth path will be restored’.
Despite a small decrease in outsourcing-related work in the second quarter, outsourcing and IT consultancy revenues increased by 29%.
MCA members also said they expect industry fortunes to improve, with positive predictions for financial services, the public sector and work overseas. Lynton Barker, MCA president and chairman of Hedra, said: ‘These statistics provide further evidence of the value consultants add to their clients. Not only did three quarters of MCA members report increases in revenues this quarter, but almost two thirds of work was carried out for existing clients. ‘This can only represent the positive effect consultants are making on their clients? business, both in terms of improved productivity and increased revenues.’