According to a report from Source Information Services the revenue of consulting firms in the UK grew by 6,6% last year to £6,02 billion. The Big Four outperformed the rest with an increase van 8,9% in revenue to £2,34 billion.
The growth in revenue is a result of the economic recovery, which gives large firms the confidence of spending on strategic initiatives an projects that were put on hold.
The Big Four will benefit the most of the work in the financial services industry. It is the biggest sector for the consulting market and they can deliver the financial management and risk services – also one of the fastest growing service lines in the UK in 2014 – that is required.
Source expects the good times to keep rolling in the UK market, particularly as 60 per cent of clients say their consulting spend will increase over the next 18 months. Source therefore forecasts that the market will grow by 6% in 2015. However, while the revenue outlook is good, there are signs that clients are expecting more for their money in a fiercely competitive market. Two-thirds of companies favor payments being linked to specific outcome-based contracts, while the competition for large projects is such that some consulting firms are waiving fees for the whole first phase of projects – sometimes providing work free that would previously have been valued in the seven-figures.