Consulting revenues dropped by 6% to below £8bn, and the number of people
employed fell 15%, as the tough economic conditions hit the industry.
A fall in demand within the financial services sector of 12% hit the
industry, while central government’s use of consultancy fell by 8%. Strategy
consulting fees fell by a quarter.
“While there were few parts of the private sector where demand for consulting
services remained unscathed, there is already anecdotal evidence that the
financial services sector is showing signs of a return to growth,” said Alan
Leaman, chairman of the
Consultancies Association (MCA).
Process re-engineering, where consultants looks to help businesses strip out
costs, grew 5% on top of a 31% jump in 2008. Local government services grew 11%.
“There will be significant pressure on public spending in 2010 and for many
years to come. But the public sector will also need the help of management
consultancy to raise its own productivity, improve public services and cut
costs. We are pressing for more payment by results contracts in the sector as
this will demonstrate clearly that consultancy delivers high value for money,”
MCA member firms’ income contracted by 6% on a like-for-like basis to
£5.57bn. This means that the UK consulting industry is now worth around £7.96bn.
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
Accountants should alter their perspective on auto-enrolment to maximise business opportunities, according to Eric Clapton.
Kevin Reed discusses whether new accountancy group Cogital can rival the Big Four...and its likely direction of travel