(PRWEB) June 28, 2013
Growth in management consulting continues to accelerate, according to Technology Business Research Inc.’s 2H12 Management Consulting Benchmark, with three of the top five management consulting firms achieving double-digit growth that separated them from the rest of the field. This growth is derived from investment in emerging technologies, additional boots on the ground in mature and emerging markets, and explosive growth in the healthcare and retail verticals.
Deloitte is the clear winner in overall revenue and headcount growth according to the 2H12 Management Consulting Benchmark. The benchmark details the steps Deloitte took to widen its lead over its Big Four peers, expanding the revenue gap from just over $1 billion in 2010 to $2.2 billion in 2012. This revenue equals more than a quarter of the nearly $4 billion in new revenue earned by the vendors covered in the benchmark.
Ramunas Svarcas, a TBR Professional Services senior analyst, explains how the demands of clients are changing engagement models at the top consulting firms. Svarcas notes, “Management consulting firms are re-engineering themselves to accommodate the convergence of technology and business strategy. Technology is not just support, but an integral part of the business, so management consultancies must walk hand in hand with emerging technologies.”
According to the benchmark, the steps firms are taking to improve revenues are impacting not just mature markets for consultancies but emerging markets as well. Consulting companies covered in the benchmark grew APAC revenue 14% in 2012 compared to 2011, but even with that impressive growth, it remains less than a fifth of Americas and EMEA revenues combined. The lingering questions for 2013 are whether APAC can keep growing and if EMEA can get beyond low-single-digit growth.
Vendors realized substantial growth in healthcare and retail in 2012, with rates of 12% and 12.9%, respectively. The vendors covered in the report leverage two different business models to achieve this growth, with one group of firms investing in healthcare-specific offerings — either through acquisition or innovation — and the second group relying on previously applied strategies and technologies as well as continued churn created by healthcare reform. Quantitative success of these models varied, as illustrated by results among the first group of vendors, Deloitte, IBM and Aon Hewitt. The second cluster includes Mercer, with revenues similar to Aon Hewitt but at less than half the growth rate.
The 2H12 Management Consulting Benchmark includes profiles of 16 vendors: Accenture, Aon Hewitt, A.T. Kearney, Bain & Co., Boston Consulting Group, Booz & Company, Capgemini, Deloitte, Ernst & Young, IBM, KPMG, McKinsey & Company, Mercer, Oliver Wyman, PwC and Towers Watson. The analysis of these vendors includes revenues by service line, region and verticals, headcount (partners, billable and nonbillable) by service line and region, profitability, utilization and attrition. The report is now available for purchase.
For more information about the 2H12 Management Consulting Benchmark please contact Alison Crawford, senior marketing manager, at 603-758-1838 or alison.crawford(at)tbri(dot)com or James McIlroy, vice president of sales, at 603-758-1813 or mciloy(at)tbri(dot)com.
Technology Business Research Inc. is a leading independent technology market research and consulting firm specializing in the business and financial analyses of hardware, software, networking equipment, wireless, portal and professional services vendors. Serving a global clientele, TBR provides timely and accurate market research and business intelligence in a format that is uniquely tailored to clients’ needs. TBR analysts are available to further address client-specific issues or information needs on an inquiry or proprietary consulting basis.
TBR has been empowering corporate decision makers since 1996. For more information please visit http://www.tbri.com.