The study, by Source Information Services (Source), reveals that almost half (49%) of consulting clients expect their spend on consultants to increase in 2013, with a quarter expecting double digit percentage increases. In particular, companies operating in the energy and natural resources sector are expecting to expand their use of consultants, with a tenth expecting their spend to rise “sharply”.
According to the study, which was based on surveys and interviews with around 800 senior users and buyers of consulting services from Europe, the Middle East and the US, this projected growth is one of the most positive readings of the market it has taken since 2007. Only 16% of those surveyed said they were expecting a fall in spend.
Cost-reduction remains a “very significant” focus for many clients – 87% of clients said they expect to engage in cost-related initiatives over the course of 2013 and many expect to turn to consultants as they do. Very close behind is a focus on growth – 86% said they had growth initiatives planned for 2013 – but many expect consultants to support growth initiatives from the back office rather than lead them from the front office.
Fiona Czerniawska, co-Founder of Source said: “Our research suggests that the growth agenda continues to gather momentum amongst clients. Keen though they may still be to keep a firm lid on costs, for most growth is now an imperative. This represents one of the biggest opportunities for consulting firms at the moment, but for many it will manifest itself as demand for more traditional back office consulting around technology, for instance, or operations.”
In overall terms, technology consulting looks set to enjoy the strongest growth. Organisations surveyed stated they are four times as likely to expect their use of consultants on technology projects to increase, as decrease. Only 14% of the organisations surveyed said their expenditure in this area will fall – compared to 56% who thought it would grow.
Czerniawska added: “Far fewer consulting firms will find themselves well-positioned to work alongside clients in the front office, on more traditional growth-related activities like marketing and sales. To some extent, this is about consultants being victims of their own success in the back office, but the reality is that many have shot themselves in the foot here: failing to spot the need to update their thinking about the ways in which organisations can grow. Whichever way, we suspect there’s a much bigger opportunity which may go begging as a result.”
