FEACO`s Survey of the European Management Consultancy 2010

Transcription

Survey of the European Management Consultancy
2010/2011
December 2011
This report was prepared for FEACO by:
Dr. József Poór
Dr. Andrew C. Gross
Ágnes Milovecz
Ágnes Király
© Research Center on Management and Human Resource Management, University of Pécs, Pecs, Hungary
Table of Contents
Introduction by the FEACO CHAIRMAN. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Key Figures, 2008–2011. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
1 Scope of the Market and Methodology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
2 Europe – Market Size, Forecast & Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
2.1 History and Projections. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
2.1.1 Size of the European MC-Market, 1998-2011. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
2.1.2 Evolution in % of the MC Market Turnover, 1998-2011. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
2.1.3 MC Market as % of GDP, 1998-2011. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
2.1.4 Average Growth Rate by Size of Consultancy Company, 2005-2010 . . . . . . . . . . . . . . . . . . 9
2.1.5 Size of the European MC Market (Total Turnover) by Country-Region, 2010. . . . . . . . . . 10
2.1.6 Breakdown of the European Consulting Market (Business & IT Consulting) by Main Countries, 2009-2010. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
2.2 Analysis by Service Line. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
2.2.1 Composition of MC Market by Service line, 2010. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
2.2.2 Breakdown of Business Consulting Turnover, 2010. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
2.2.3 Breakdown of Consulting Turnover, 2010. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
2.2.4 Breakdown of Turnover from other Services, 2010. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
2.3 Analysis by Client Sector. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
2.3.1 Composition of the MC Market by Client Sector, 2010. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
3 Selected European MC Markets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
3.1 Analysis by Country . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
3.1.1 Growth Rates – Breakdown by Country Region, 2010. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
3.1.2 Management Consulting as a Percentage of GDP, 2010. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
3.1.3 MC Turnover and GDP in Selected European Markets, 2010. . . . . . . . . . . . . . . . . . . . . . . . . 16
3.1.4 Breakdown between Management Consultants and Support Staff, 2010. . . . . . . . . . . . 17
3.1.5 Key Figures of Selected European MC Markets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
3.2 Analysis by Daily Rates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
3.2.1 Average Daily Fee Rates of Selected European MC Markets, 2010 . . . . . . . . . . . . . . . . . . . 18
3.2.2 Export of MC Services by Selected Countries, 2010. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
3.3 Analysis by Service Lines. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
3.3.1 MC Market Composition by Service Line (% of Turnover), 2010. . . . . . . . . . . . . . . . . . . . . . 19
3.3.2 MC Market Composition by Service Line (million €), 2010. . . . . . . . . . . . . . . . . . . . . . . . . . . 20
3.3.3 Breakdown of MC in Selected Key Countries (million €), 2010. . . . . . . . . . . . . . . . . . . . . . . 20
3.3.4 Breakdown of Business Consulting in Selected Key Countries (million €), 2010. . . . . . . 21
3.4 Analysis by Client Sector. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
3.4.1 MC Market Composition by Client Sector (% of Turnover), 2010. . . . . . . . . . . . . . . . . . . . . 21
3.4.2 MC Market Composition by Client Sector (million €), 2010. . . . . . . . . . . . . . . . . . . . . . . . . . 22
3.4.3 Key Market Composition by Client Sector. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
4 Main Trends in Management Consulting in 2010/2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
4.1 Austria. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
4.2 Denmark. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
4.3 Finland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
4.4 France. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
4.5 Germany. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
4.6 Greece. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
4.7 Hungary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
4.8 Ireland. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
4.9 Italy ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
4.10 Portugal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
4.11 Romania. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
4.12 Slovenia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
4.13 Spain. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
4.14 Switzerland. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
4.15 United Kingdom . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
5 About FEACO, The European Federation of Management Consultancies Associations . . . . . . . . 33
6 Member Associations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
7 Appendix – Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Introduction by the
feaco chairman
As the new chairman, it is my pleasure to introduce
the 2010/2011 edition of the Feaco Survey of the
European Management Consultancy Market.
The current scenario is characterized by fluidity,
contamination and discontinuity. The world and
identity of consultancy is undergoing dynamic
change, from the demand, players, services to the
sector’s structural elements. The current process of
transformation is constant and fluid, lacking any
defined elements of stability; it leaves very little
untouched and requires that we be ready to adapt
accordingly.
hybridization between the known and the new
(in its form and/or content); it is therefore the best
tool for helping businesses grow, a tool that must
be employed at both national and European levels
to promote growth.
Together, we have faced a severe economic
recession in recent years. However, the sector of
management consulting already shows a tendency
towards recovery that is greater than forecasted.
With the setbacks of 2009 limited to that year, in
2010 management consulting enjoyed increasing
employment and revenues growing by 2.9%.
Today we are asked to think “big”, to broaden
our vision. This does not mean compromising
specific identities; rather, it has the potential to
enrich them. Strengthening the various national
associations involves equipping them with
tools that accelerate their internationalization.
Liberalizing and opening the market will prompt
a competition on the basis of added value, thus
raising the qualitative level of the services on offer.
In its leading role of developing, representing
and supporting management consulting for
organized businesses, FEACO will continue to use
networking and research activities to promote the
kind of competency hybridization that leads to
mutual benefit.
In this fluid and discontinuous context, consultancy
represents a growth factor and GDP multiplier,
and must be perceived as such by the market.
The answer to discontinuous change cannot be
stagnancy, but rather conscious adaptation or
bravely anticipatory action. It is by inciting such
transformations that consultancy performs its
role of catalyzing growth and development.
Consultancy is innovative in its very nature, it is
Ezio Lattanzio
Feaco Chairman
5
Executive Summary
Key Figures, 2008–2011
Executive Summary
Key Figures, 2008–2011
ery can be seen; the size of the consulting market
in 2010 almost reached the level of 2008 concerning revenues, and the number of total staff in 2010
highly exceeded its counterpart in the previous
years. The distribution of revenues between the
different key service lines of management consulting is presented in Table 1. The already remarkable
representation of Business Consulting among the
consulting services has further strengthened. IT
Consulting and Development & Integration have
shown better growth rates than before, while proportion of Outsourcing and Other Services have
declined.
The results of the 2010-2011 FEACO survey, conducted in cooperation with the national European
management consulting associations, clearly show
that in regard to the size of the consulting market
last year’s forecast was moderate. The actual results
in regard to revenues in 2010 proved to be 1.6 billion Euros higher than expected in 2009. As markets previously anticipated, the setback experienced in 2009 was limited to that year, so the
estimated growth rate for 2010 (1.6%) turned out
to be an underestimation. Taking year 2009’s data
into consideration revenues increased by 2.9%.
Compared to the past years the tendency of recovTable 1.
Key Figures 2008-2011
2008
2009
2010
2011 est.
Market size
€86.7 bn
€83.7 bn
€86.2 bn
€89 bn
Growth rate
8.2%
-5%
2.9%
4%
Total staff (thousand)
557
574
659
n.a.
Business Consulting
42%
43%
50%
n.a. IT Consulting
14%
14%
15%
n.a.
Dvt & Integration
21%
18%
19%
n.a.
Outsourcing
17%
19%
12%
n.a.
Other services
6%
6%
4%
n.a.
Breakdown of Key Services
United Kingdom, Spain and France. Regarding
the level of regions, Western Europe is in first
place, followed by the Nordic Region, while Central & Eastern Europe’s total turnover has not decreased remarkably.
The aggregate data from the European consulting industry in 2008-2010 by country and by region is presented in Table 2. According to this,
significant alteration cannot be seen compared
to the previous years. Germany remains the largest consulting market in Europe, followed by the
Table 2.
Key Figures in Selected
Countries and Regions
2008
Total turnover in
billion €
2010
Total turnover in
billion €
Business & IT
Consulting in
billion €
Total turnover in
billion €
Business & IT
Consulting in
billion €
19.4
Germany
26.5
18.2
25.8
17.7
27.9
United Kingdom
20.2
10.3
18.8
9.5
19
8.1
Spain
9.5
1.8
9.6
1.8
9.9
1.7
France
8.3
5.3
7.7
6
8.8
2.6
Western Europe
12.2
8.8
12.5
7
11.6
7.5
Nordic Region
7.9
5.7
7.2
4.3
6.8
4.4
Central &
Eastern Europe
2.4
1.7
2.1
1.6
2
1.3
Western Europe:
Central & Eastern Europe:
Nordic Region:
6
2009
Business & IT
Consulting in
billion €
Austria, Belgium, Ireland, Italy, Netherlands, Portugal, Switzerland
Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Greece, Hungary, Poland, Romania, Slovenia
Denmark, Finland, Norway, Sweden
1Scope of the Market
and Methodology
The main goal of FEACO is to present objectively
and as accurately as possible a picture of the
activity in the Management Consulting (MC)
sector of Europe, aiming for the maximum level of
reliability in the aggregation of the figures which
represent the different elements of the services
which companies in the MC sector offer.
Findings shown here reflect the aggregate data
and the level of detail as a result of the effort
of all the companies, large and small, who
participated and continue to contribute to build
a prosperous, competitive and exciting European
MC Market. The FEACO member associations
and the companies provide a broad spectrum
of MC services. Depending on each national
market, the range and type of services offered
may be at different levels of maturity. The array of
services the management consultancies offer is
dynamic and continuously evolving. Defining the
framework of activity of our sector is therefore not
an easy task, mainly because it concerns a basket
of services that are quite different in the various
countries.
From that perspective and with the objective of
improving our report, FEACO proposed in 2005 a
new definition of the scope of services offered by
management consultancies in Europe and a new
way of segmenting these services. This exercise
resulted in the following division of the main
services:




onsulting, which we divide into Business
C
Consulting and IT Consulting,
Development and Systems Integration
(excluding software development),
Outsourcing of value added services,
Other services.
These segments are described in detail in the
subsection “Analysis by Service Line”. The new
framework implied a change in methodology
for the collection and aggregation of the
quantitative and qualitative data, which are
provided by the companies. The methodology
consists basically in the collection of the data by
our member associations on the MC sector via
the aggregation of the figures from the individual
consulting companies. In 2007, FEACO decided
1
to distinguish between associations with an indepth knowledge of their domestic market and
associations from countries whose markets are
less well-known or well-measured. As a result,
quantitative data were collected on two levels:
Key countries were asked to provide:
 Volume of turnover for the year 2010
 Data on staffing
 Business volume per service area
 Business volume per major client sector
 Daily fee rates for 2010
 General forecasts for 2011
Non key countries were asked to provide:
 Volume of turnover for the year 2010
 Data on staffing
 General forecasts for 2011
In parallel, qualitative data were solicited in a
separate questionnaire on companies’ views on
the development and the future of the MC sector
in selected areas of activity. The results of it are
summarised in the section of the report on trends
in the MC sector. The MC sector is dynamic as
every year new consulting companies appear,
while others merge (which give rise to spin-offs)
or reorganize themselves. Because the data are
provided on a voluntary basis, the sample of
companies surveyed in each European country
varies from year to year. The latest edition of the
survey allows us to redefine retroactively some of
the data obtained in previous years.
This year 15 countries contributed with their
effort to the final FEACO report 2010/2011. Out
of the 15 Full Members 11 members (Austria,
Finland, France, Greece, Hungary, Italy, Portugal,
Romania, Slovenia, Spain, Switzerland) delivered
answers and Denmark, Germany, Ireland and the
United Kingdom also participated in the survey.
The FEACO Report 2010/2011 is considered to be
representative, because the countries delivering
data cover over 80% of the total European
Management Consulting Market. Data were
evaluated on a statistical basis, using data and
variance analysis to prove the reliability of the
results. The estimated data were calculated on
the basis of the median results of the various
indicators.
7
S cope of the Market
and Methodology
2 Europe – Market Size,
Forecast & Analysis
2Europe – Market Size,
Forecast & Analysis
2.1 History and Projections
2.1.1 Size of the European mc Market, 1998-2011
reached its level that was experienced back in
2008. According to estimates, the MC sector is
on target to beat the record with an optimistic
forecast of 89 billion Euros in 2011.
After several years of incremental growth, the
industry experienced a slight decline in 2009, but
it seemed to be only a temporary downfall as in
2010 the volume of the MC Market has almost
Figure 1.
Size of the European MC Market,
1998-2011
90
86.7
81
80
86.2
89
74
70
Volume of the MC Market (billion € )
83.7
64.5
60
47.5
50
42.5
40
46.5
36
30
24.5
20
15
15.9
18
14
11.5
10
10.7
9.5
8.2
3.7
3.5
–2
0
-10
48.5
47.5
1998
1999
2000
2001
2002
2.9
4
2010
2011
(est.)
–5
2003
2004
2005
2006
2007
2008
2009
Growth rate (%)
2.1.2 Evolution in % of the MC Market Turnover, 1998-2011
increase reached 519% compared to the data of
the 1996 base year. A moderate setback could be
experienced in 2009, but a new development phase
has begun in 2010 as the MC market produced
516% compared to the base year. The anticipations
for 2011 mirror the positive expectations of the
participants as they expect a new peak.
In Figure 2 a similar optimistic tendency can be
discerned about the evolution of the MC market
turnover in percentage. Until 2004, changes
in the MC market turnover can be described
as showing a slow but stable growth. In 2005
revenue significantly increased starting a robust
growth trend. This lasted until 2008, when the
600
MC Market (1996 = base 100)
Figure 2.
Evolution in % of the MC Market
Turnover, 1998-2011
446
500
519
502
516
532
2008
2009
2010
2011
(est.)
389
400
300
200
489
217
256
286
280
286
292
2001
2002
2003
2004
149
100
0
1998
1999
2000
Year
8
2005
2006
2007
2 E urope – Market Size,
Forecast & Analysis
2.1.3 MC Market as % of GDP, 1998-2011
From 2003 to 2004 a similar, barely observable
change took place and then it was followed by an
outstanding increase; for 2011 the expectations
show the return of the level of 2009 of the results.
As can be seen in Figure 3, changes in the MC
market as % of European GDP (Source: Eurostat)
show a 0.01% decrease from 2009 to 2010,
which means that there was no actual change.
0.8
0.7
0.6
0.58
0.55
0.56
0.55
2001
2002
2003
2004
0.61
0.63
0.64
0.65
2006
2007
2008
0.68
0.67
0.68
2009
2010
2011
(est.)
Figure 3.
MC Market as % of GDP,
1998-2011
0.53
0.5
0.36
% GDP
0.4
0.3
0.24
0.2
0.1
0.0
1998
1999
2000
2005
Year
2.1.4 Average Growth Rate by Size of Consultancy Company, 2005-2010
growth rate of firms in both categories tend
toward stability. In 2010 the growth rate of
the small sized MC-firms was actually positive
again.
The slight decline concerning the growth rate
of the industry in 2009 affected primarily the
large and medium sized MC-firms that year,
however, in 2010 the changes in average
Large sized MC-firms
(TOP 20 MC-firms)
Medium sized MC-firms
(≥ €500.000 turnover)
Figure 4.
Average Growth Rate by Size of
Consultancy Company, 2005-2010
Small sized MC-firms
(< €500.000 turnover)
25%
20%
20%
17%
15%
15%
10%
10%
8%
11%
10%
9%
4%
5%
6%
5%
4%
-6% -6% -2%
0%
-2% -3%
1%
-5%
-10%
2005
2006
2007
2008
2009
2010
Year
9
Forecast & Analysis
2.1.5 Size of European MC Market (Total Turnover) by Country-Region, 2010
In 2010, the same countries and regions can be
found among the 13 examined European MC
markets as in 2009. The position of each country
and region remained quite stable. Based on total turnover in each of the markets, Germany is
still the largest European MC Market with 32.4%
of the total, followed by the United Kingdom at
Figure 5a.
Size of the European MC Market
(Total Turnover)
by Country-Region, 2010
Switzerland
1.22%
Belgium
1.39%
Portugal
1.43%
Austria
1.83%
22.1%. Spain and France are ranked third and
fourth, with their respective 11.5% and 10.2%.
Germany and France increased their portion
of the market compared to last year by 1% and
1.6%, respectively, while Italy, Portugal and Switzerland each grew by less than 0.5%.
Greece 0.24%
Central & Eastern Europe 2.14%
Italy
3.53%
Netherlands
3.62%
32.36%
Nordic Region
Germany
8.47%
%
France
10.22%
11.49%
22.05%
Spain
Figure 5b.
Size of the European BC Market
(Total Turnover)
by Country-Region, 2010
Portugal
0.98%
Spain
1.11%
Switzerland
1.96%
Austria
2.06%
Belgium
2.23%
United Kingdom
Greece 0.28%
Central & Eastern Europe 3.52%
Italy
5.66%
28.03%
Germany
5.80%
Netherlands
%
France
10.18%
11.97%
Nordic Region
In 2010 FEACO developed a new instrument for
comparative analysis – the size of the European
Business Consulting market. Since in most of the
countries Business Consulting is the leading service line within Management Consulting, it can be
a useful tool for comparison-making. The ranking
10
26.20%
United Kingdom
of countries and regions is the following from
this aspect: Germany, United Kingdom, Nordic
Region, France, Netherlands, Italy, Central and
Eastern Europe, Belgium, Austria, Switzerland,
Spain, Portugal and Greece.
Forecast & Analysis
2.1.6 Breakdown of the European Consulting Market (Business & IT Consulting) by Main Countries, 2009-2010
no significant changes that can be seen, though
the United Kingdom and France lost respectively
4% and 1% to the benefit of Germany. The rate
for Spain remained unchanged.
For the four main countries covering more than
75% of the total MC market, we present the
distribution of the European Consulting Market
(Business & IT Consulting) in Figure 6. There are
5%
5%
17%
16%
Figure 6.
Breakdown of the European
Consulting Market
(Business & IT Consulting)
by Main Countries, 2009-2010
23%
27%
50%
56%
2009
2010
Year
Germany
United Kingdom
2.2 Analysis by Service Line

According to the new segmentation introduced
by FEACO in 2005, the MC market is divided into
four segments: Consulting, Development and Integration, Outsourcing and Other services. The
Consulting segment is subsequently divided into
two sub-segments: Business Consulting (BC) and
Information Technology Consulting (ITC).
1. Consulting. These services help private and
public organisations to analyse and redefine their
strategies, to improve the efficiency of their business operations and to optimize their technical
and human resources.
1a. Business Consulting (BC), which includes:
 S
trategy Consulting (SC), which targets the improvement of the long-term, strategic health of
a company: strategic planning development;
mergers & acquisitions; sales; marketing; corporate communication; financial advisory; HR
strategy;
 Organisation/Operation Management (OM)
aims at the integration of business solutions
through Business Process Re-engineering (BPR);
customer/supplier relations management (CRM);
turnaround/cost reduction and purchasing & supply management as well as advise on outsourcing;


France
Spain
Project Management (PM); The application of
knowledge, skills, tools and techniques to a
broad range of activities in order to meet the
requirements of a particular project;
Change Management (CM), this consists of
services which, on top of any other type of consulting service, help an organisation deal with
the effects that change has on the human element of the organisation;
Human Resources Consulting (HR): Consulting
services which target the improvement of the
‘people’ element of an organisation through
performance measurement and management,
reorganisation of benefits, compensations and
retirement schemes, HR strategy and marketing, the development of talent strategies and
executive coaching.
1b. Information Technology Consulting (ITC)
helps organisations to evaluate their IT strategies
with the objective of aligning technology with the
business process. These services include strategic
planning and conceptions, operations and implementations.
11
Forecast & Analysis
2. Development and Integration that concerns:


the development of applications (excluding
software);
the creation of new functionalities through, often tailored, process developments.
Usually these developments integrate or unite
internal or external business processes and can
involve a conversion of applications so that they
can be used for different platforms or conceptions,



the design of services which integrate applications which were created in different existing
IT applications or infrastructures (systems integration -development);
the deployment and integration of applications;
the implementation of new applications or infrastructures, which refers to the instal-lation
of hardware and/or software, their configuration or adaptation and the testing of their interoperability; and of services which integrate
applications which were created in different
existing IT applications or infrastructures and
the management thereof (systems integration).
3. Outsourcing, which consists of three types
of activities:



I T management services; among these are services for the operation of infrastructures (operation of systems, administration and security,
follow up of cost-effectiveness, configuration
management, management of technology,
etc.) applications management, and help desk
management;
A
pplied Management Services (AMS); this concerns the outsourcing of the development and
implementation of support services for hardware, applications, CRM and infrastructures
(tools for the development of applications and
middleware, as well as software for information management, storage or systems and networks);
B
usiness Process Outsourcing (BPO); this service supposes the externalisation of a complete
business process.
4. Other Services, which consist of a variety of
offerings provided by many MC companies that
are generally complementary to Consulting, Development and Integration, and Outsourcing. Categories here include: Training, Engineering Consulting, Outplacement, Executive Selection and
Recruitment and Audit and Accounting.
2.2.1 Composition of MC Market by Service Line, 2010
Business Consulting is the most robust service line
having increased by 7% points between 2009 and
2010 and it now accounts for 50% of the MC Market.
Another interesting realignment took place in 2010:
Figure 7.
Breakdown of Turnover
by Service Line, 2010
Other Services
4%
Outsourcing
Development
& Integration
12%
%
19%
IT Consulting
12
Development & Integration (19%) has overtaken
IT Consulting (15%) and Outsourcing (12%). Other
Services, already small, lost 2% point and now its share
stands at 4%.
15%
50%
Business Consulting
Forecast & Analysis
2.2.2 Breakdown of Business Consulting Turnover, 2007-2010
(OM) with its 37% and HR Consulting with its 11%,
or increased their shares of BC turnover as was
the case for Strategy (from 24% to 29%) and for
Change Management (from 11% to 14%).
Only one line of Business Consulting declined from
2009 to 2010 and that was Project Management
(from 18% in 2009 to 9% in 2010). All other service
lines either preserved their shares of BC turnover
such as Organizations/Operations Management
11%
9%
4%
10%
11%
11%
11%
14%
21%
18%
9%
33%
37%
12%
43%
30%
37%
27%
2007
Figure 8.
Breakdown of Business Consulting
Turnover, 2007-2010
29%
24%
2008
2009
2010
Year
Strategy
Organisation/Operations Management
Project Management
Change Management
HR Consulting
2.2.3Breakdown of Consulting Turnover, 2010
Figure 9 shows that in the breakdown of con
sulting turnover there was a slight change in
2010 compared to 2009. Business Consulting
now covers 77% of consulting turnover and IT
Consulting now stands at 23% share. Nevertheless,
a slow but continuous tendency can be seen from
2007 onward, with the role of Business Consulting
strengthening at the expense of IT Consulting.
Figure 9.
Breakdown of Consulting Turnover,
2010
IT Consulting
23%
%
77%
Business Consulting
13
Forecast & Analysis
2.2.4 Breakdown of Turnover from Other Services, 2010
In 2010 Executive Selection/Recruitment/Outplacement gained 2% compared to last year’s
data, however, it still did not reach the level of
2008 (59%) or 2007 (68%) level. Audit retained its
share with its 19%, while Training and Other ServFigure 10.
Breakdown of Turnover from
Other Services, 2010
Other
Market Surveys
ices recorded respectively a 2% and 1% growth
compared to 2009. Engineering now stands on the
same level as it did in 2009, while Market Surveys
lost 5% of its share by 2010.
18%
1%
Engineering 2%
Training
%
9%
51%
Executive Selection/
Recruitment/
Outplacement
19%
Audit
2.3 Analysis by Client Sector
2.3.1 Composition of the MC Market by Client Sector, 2010
In 2009 the demand for the top three Client
Sectors was almost equally distributed, but
by 2010 Banking & Insurance can be clearly
differentiated with its 25.6%. Industry and Public
Sector – while closely following each other –
Figure 11.
Composition of the MC Market
by Client Sector, 2010
exchanged their ranking, with respective 19.8%
and 18.7%. Although all of the other sectors
remained below 10%, the growing role of Energy
& Utilities is notable; it had 7% in 2007 and,
steadily increasing, it has reached 9.5% in 2010.
Aerospace & Defense 2.0%
Wholesale & Retail 3.3%
Healthcare (pharmaceuticals & biotech included) 3.6%
Other 4.6%
Transport & Travel
Telecoms & Media
Energy & Utilities
25.6%
5.2%
8.2%
%
9.5%
19.8%
18.7%
Public sector
14
Banking & Insurance
Industry
3 Selected European MC Markets
3 S elected European
MC Markets
3.1 Analysis by Country
3.1.1 Growth Rates – Breakdown by Country Region, 2010
Regarding the size of European MC Markets, the average growth rate is 2.9% in 2010 Figure 12 presents
the change in the size of MC Markets in 13 European
countries one by one. The negative extreme of 2010
shows much more moderate numbers than last
year’s extreme – in 2009 a -32.6% decline was experienced in Bosnia & Herzegovina, while in 2010 the
highest decline occurred in Hungary at -12%. From
the 13 European countries 6 experienced setbacks
while 7 countries reported increases. These 7 countries are the United Kingdom (1%), Slovenia (1.1%),
Spain (3.5%), Portugal (4.8%), France (5%), Germany
(5.3%) and Switzerland (5.6%). Countries that experienced modest declines are Italy (-0.8%) and Denmark (-1.5%); countries with moderate declines are
Romania (-7%) and Ireland (-7%); and countries with
significant declines are Greece (-11.2%) and, as already noted, Hungary (-12%).
1.1%
Slovenia
5%
5.3%
Switzerland
1%
United Kingdom
2%
4.8%
Germany
3.5%
4%
France
6%
5.6%
Portugal
8%
Figure 12.
Growth Rates – Breakdown
by Country, 2010
0%
-2%
-1.5%
-0.8%
-4%
-7%
-7%
Romania
-8%
Ireland
-6%
-10%
Compared to last year’s expectations, several
countries estimated their situations in 2010 in a
realistic way; however, several were too optimistic
and three countries underestimated their growth
rates. Germany provided a nearly correct estimate;
countries that underestimated the recession were
Greece, Hungary, Ireland and Romania. Meanwhile,
France, Switzerland and the UK underestimated
their own performances.
For 2011, several countries delivered their esti
Spain
Italy
Denmark
-11.2%
Hungary
-14%
-12%
Greece
-12%
mations, which can be seen on Figure 13. According
to this, it can be stated that four countries out
of six expect different levels of growth (Italy,
France, Switzerland and Romania), one country
(Ireland) expects no change for 2011 regarding its
growth rate, and from the countries that provided
estimations for 2011 only one (Greece) forecasted
a 3% decline. So the overall picture of expectations
from the participating countries can be stated as
optimistic in regard to the year 2011.
10%
9.4%
6%
6%
France
6%
Switzerland
8%
Figure 13.
Growth Rates Estimations –
Breakdown by Country, 2011
4%
2%
2%
0%
0%
-2%
Italy
Romania
Ireland
-3%
Greece
-4%
15
3 Selected European
MC Markets
3.1.2 Management Consulting as a Percentage of GDP, 2010
The contribution of the MC sector relative to the
listed countries’ GDP can be seen in Figure 14. In
2010 two countries recorded the ratio of MC to
GDP reaching in excess of 1%, namely the United
Kingdom and Germany. Two other countries
are nearing the 0.8% to 1% range; these are
Figure 14.
Management Consulting as a
Percentage of GDP, 2010
Spain and Sweden. Seven countries belong to
the third percentage range between 0.4% and
0.8%. Finally, there are eleven countries in the
fourth cluster – between 0.2% and 0.4% – and
only two countries are in the last category at
below 0.2%.
1.2%
1.1% 1.13%
Percentage
1.0%
0.93% 0.95%
0.8%
0.72% 0.73%
0.77%
0.63%
0.6%
0.53% 0.55%
0.46%
0.4%
0.22%
0.2% 0.22%
0.2%
0.31%
0.28% 0.29%
0.25% 0.25% 0.26% 0.27%
0.34%
0.09% 0.09%
0.0%
PL
GR
IT
HU
NO
BG
HR
CH
RO
IE
CY
CZ
BE
FR
NL
AT
FI
PT
DK
SI
ES
SE
UK
DE
Country
3.1.3 MC Turnover and GDP in Selected European Markets, 2010
Table 3 reveals the main economic characteristics of
the selected European MC markets, listing the GDP
data and growth and some ratios of MC market
relative to the GDP. There is no significant relation
found between GDP growth and MC growth, with
Table 3.
MC Turnover and GDP in
Selected European Markets, 2010
Country
GDP (million €)
2010
Share of total economy
of countries considered
wide variations in this ratio from country to country.
Such differences can be attributed to divergent
economic and non-economic, including prevalence
and popularity of MC in the client base.
GDP growth
2010
MC growth
2010
Total turnover of
MC firms 2010
Total turnover
of MC firms as %
of GDP
Germany
2 476 800
19.3%
3.7%
5.3%
27900
1.13%
France
1 932 802
15.1%
1.5%
5%
8814
0.46%
United Kingdom
1 700 145
13.2%
1.8%
-1%
19009
1.12%
Italy
1 548 816
12.1%
1.3%
-0.8%
3044
0.20%
Spain
0.93%
1 062 591
8.3%
-0.1%
3.5%
9903
Netherlands
588 414
4.6%
1.7%
n.a.
3120
0.53%
Switzerland
398 878
3.1%
2.7%
5.6%
1056
0.26%
0.34%
Belgium
354 378
2.8%
2.3%
n.a.
1200
Poland
354 310
2.8%
3.9%
n.a.
310
0.09%
Sweden
346 855
2.7%
5.6%
n.a.
3300
0.95%
Norway
311 855
2.4%
0.3%
n.a.
700
0.22%
Austria
286 197
2.2%
2.3%
9.8%
1581
0.55%
Denmark
234 005
1.8%
1.7%
-1.5%
1717
0.73%
Greece
227 318
1.8%
-3.5%
-11.2%
208
0.09%
Finland
180 253
1.4%
3.6%
3.5%
1142
0.63%
Portugal
172 799
1.3%
1.4%
4.8%
1236
0.72%
0.28%
Ireland
155 992
1.2%
-0.4%
-7%
438
Czech Republic
149 313
1.2%
2.7%
n.a.
465
0.31%
Romania
121 941
1%
-1.9%
-7%
325
0.27%
0.22%
Hungary
97 095
0.8%
1.3%
-12%
215
Croatia
45 899
0.4%
-1.2%
n.a.
115
0.25%
Bulgaria
36 034
0.3%
0.2%
n.a.
90
0.25%
Slovenia
35 416
0.3%
1.4%
1.1%
271.1
0.77%
Cyprus
17 334
0.1%
1.1%
n.a.
50
0.29%
Total of selected
countries
12 835 438
86 209
* Figures edited in italic represent estimated data. Source of estimations: applying the trend gained from previous years ’ Feaco Reports’ data.
16
MC Markets
3.1.4 Breakdown between Management Consultants and Support Staff, 2010
Overall for the total market, the ratio of Consultants
to Support Staff was 77% to 23% in 2010. This result
differs from that of the previous year when the ratio
stood at 82% to 18%. For a one-year interval, this is
a significant change. At the two extremes, are the
United Kingdom with 97% Consultants to 3% Support Staff, while at the other end Austria shows only
Consultants
Support Staff
Total staff
Consultants
Support Staff
Total staff
37% of the people working in MC as Consultants
and 63% belonging to Support Staff.
Tradition, current preferences, compensation patterns, diverse client base and other factors explain
some of these sharp differences among the various
nations.
Germany
Austria
UK
Italy
Finland
Portugal
73%
27%
185 000
37%
63%
102 584
97%
3%
36 789
81%
19%
33 844
58%
42%
11 860
60%
40%
15 423
Romania
Hungary
Switzerland
Ireland
Slovenia
Greece
80%
20%
10 000
92%
8%
4 800
85%
15%
4 120
89%
11%
3 427
88%
12%
3 099
88%
12%
1 770
Table 4.
Breakdown between Management
Consultants and Support Staff, 2010
3.1.5 Key Figures of Selected European MC Markets
The country rankings have remained practically
the same since 2005, when Germany achieved the
first position overtaking the United Kingdom.
nia, Hungary, the Czech Republic, Poland) which
together account for 3.4% of the European MC
market in 2010.
In 2009 the median turnover per employee for
the listed countries equals €106 902 in comparison
to 2009, which stood at €128 850. The mean was
€128 033 in 2010 (2009: €123 255).
In 2010 a turnover per employee between €60 000
and €150 000 was realized in 11 countries: Bulgaria, Cyprus, Portugal, Spain, Slovenia, Italy, Finland,
Greece, Croatia, Ireland and Belgium.
The countries are grouped in the following turnover per employee categories (the same clusters
could be used as in 2009):
In 2010 the turnover per employee rate exceeded
€150 000 in 8 countries – Netherlands, Germany,
Denmark, France, Norway, Sweden, Switzerland
and the United Kingdom.
A turnover per employee rate equal to or less than
€60 000 can be found in 5 countries (Austria, Roma-
17
3 Selected European
MC Markets
Table 5.
Key Figures of Selected European
MC Markets
Total turnover of MC
firms 2010 (million €)
Country
Total turnover of MC
firms 2009 (million €)
Share of MC market in
Europe 2010
Total staff
2010
Turnover per
employee (€)
Germany
27 900
25 780
32.36%
185 000
150 811
United Kingdom
19 009
18 821
22.05%
36 789
244 658
Spain
9 903
9 572
11.49%
119 000
83 218
France
8 814
7 728
10.22%
49 800
176 988
Sweden
3 300
3250
3.83%
16 900
195 266
Netherlands
3 120
3080
3.62%
20 700
150 725
Italy
3 044
2866
3.53%
33 844
89 942
Denmark
1 717
2107
1.99%
10 900
157 523
Austria
1 581
2960
1.83%
102 584
15 412
Portugal
1 236
1 179
1.43%
15 423
80 140
146 341
Belgium
1 200
1190
1.39%
8 200
Finland
1 142
1 103.2
1.32%
11 860
96 290
Switzerland
1 056
875
1.22%
4 120
256 311
Norway
700
690
0.81%
3 900
179 487
Czech Republic
465
460
0.54%
8 700
53 448
Ireland
438
363.1
0.51%
3 427
127 809
32 500
Romania
325
350
0.38%
10 000
Poland
310
310
0.36%
5 600
55 357
Slovenia
271
268.5
0.31%
3 099
87 480
Hungary
215
245
0.25%
4 800
44 792
Greece
208
234
0.24%
1 770
117 514
Croatia
115
114.5
0.13%
900
127 778
Bulgaria
90
90
0.10%
1 400
64 286
Cyprus
50
50
0.06%
750
66 667
86 209
83 687
100%
659 466
128 033
Total of selected
countries
* Figures edited in italic represent estimated data. Source of estimations: applying the trend gained from previous years’ Feaco Reports’ data.
3.2 Analysis by Daily Rates
3.2.1 Average Daily Fee Rates of Selected European MC Markets, 2010
Daily fee rates are the most difficult to obtain in
any given year. In 2008 only four countries (Greece,
Finland, France and Germany) could provide these
data, in 2009 this number increased to six (Croatia,
France, Germany, Greece, Hungary and Switzerland; in 2010 also six countries were willing to provide these data, however, not the same ones as in
the previous year. In 2010 Finland, Greece, HungaTable 6.
Average Daily Fee Rates of Selected
European MC Markets, 2010
Daily rates of Management Consulting
Hungary
€400
Greece
€440
Romania
€500
Italy
€745
Finland
Switzerland
€960
€1 250
ry, Italy, Romania and Switzerland have given data
on daily rates of Management Consulting.
These six countries can be further classified into
two groups: Hungary, Greece and Romania belong
to one group with lower level of daily fee rates
(€400, €440 and €500) while the second group includes Italy, Finland and Switzerland (€745, €960
and €1250) respectively. The first group is a cluster
in the Central and Eastern European region, while
the second group is situated in Western Europe
and the Nordic region. There is indeed a large gap
between the two groups with more than a twicefold order of magnitude in the amounts received
for a day. Specifically, the mean of the three CEE
countries is €447, while the mean of the three WE
+Nordic countries is €985.
3.2.2 Export of MC Services by Selected Countries, 2010
The average market share for Export of MC Services in the selected 14 countries is 16.1%. Regarding
total exports, Finland is first with its 26.8% share
and Ireland exports only 8%. If we separate export
18
activity considering its destination, Hungary, Switzerland, Austria, Romania, France, UK, Ireland and
Italy remained under 5% exporting to countries
outside Europe and it is Spain which exported
MC Markets
national MC turnover. Eleven of the fourteen countries export more to European countries and three
countries export more to countries outside Europe.
the most at 10%. For countries inside Europe, the
greatest exporter is Hungary with its 19% and Portugal at the other end at 5% relative to their own
Figure 15.
Export of MC Services by Selected
Countries, 2010
25%
20%
Export
15%
10%
5%
0%
Finland Hungary Greece
Spain Switzerland Austria Slovenia Germany Portugal Romania France
26.8%
23%
21.1%
21%
21%
17%
15.5%
15%
 Outside Europe 8.1%
4%
8.2%
10%
4%
3.1%
8%
9%
8%
18.7%
19%
12.9%
11%
17%
13.9%
7.5%
6%
5.1%
Total
 Inside Europe
UK
Italy
12%
10%
8.9%
8%
2.5%
4%
4%
0%
2%
10.3%
8%
6%
8.9%
6%
13.1% 12.8%
Ireland
3.3 Analysis by Service Lines
3.3.1 MC Market Composition by Service Line (% of Turnover), 2010
There is still a remarkable dominance of Business
Consulting within Management Consulting with the
share of BC within MC at more than 50% in all examined countries historically; however, in 2010 a new
tendency can be observed. In eight of the twelve selected countries BC is still higher than 50%, but now
other major service lines have also become significant. Development and Integration and OutsourcGermany
Total turnover
27 900
(million €)
Major service lines (%)
Business
54%
Consulting (BC)
IT Consulting
15.5%
Development &
19.5%
Integration
Outsourcing
6.4%
Other services
4.6%
Total
100%
BC Details
Strategy
Organisation/
Operations
Management
Change
Management
Project
Management
HR Consulting
Total
16.6%
16.4%
ing are quite strong in Spain (42% and 40%), Other
Services plays a key role in Portugal (57.3%), while
Development and Integration is above 10% in Germany, Spain, and France. Above 10% is IT Consulting
in Germany, United Kingdom, Spain, Austria, Ireland,
Slovenia, and Hungary. Above 10% are Outsourcing
in Spain and France as well as Other Services in Portugal, Finland, Ireland and Greece.
United
Kingdom
Spain
France
Austria Portugal Finland
19 009
9 903
8 814
1 581
1 236
1 142
1 056
438
271.1
215
208
74.1%
6%
62.1%
69.9%
42.7%
62.6%
n.a.
57.6%
69.5%
47%
73.9%
25.9%
12%
6.4%
18.8%
8.6%
n.a.
16.8%
13%
36%
4.6%
Switzerland
Ireland Slovenia Hungary
Greece
0%
42%
16%
0%
9.2%
n.a.
9.1%
7%
8%
4.1%
0%
0%
100%
40%
0%
100%
15%
0.5%
100%
2%
9.3%
100%
57.3%
100%
5.4%
14.2%
100%
n.a.
n.a.
100%
4.4%
12.1%
100%
2%
9%
100%
4%
5%
100%
1.5%
15.9%
100%
7%
3%
8.6%
36%
9.4%
24.8%
29%
16.2%
22.5%
10%
17%
36.7%
3%
71%
16.5%
27.6%
14.7%
including
IT Consulting
13%
29.5%
22%
25.6%
0%
3.2%
11.3%
n.a.
15.7%
4.5%
8%
26.5%
0%
0%
5.1%
n.a.
5.9%
6.5%
3%
2.5%
2.5%
42.7%
6.7%
62.6%
n.a.
n.a.
6.8%
57.6%
6.5%
69.5%
4%
47%
2.3%
73.9%
37.1%
6.5%
19%
0%
7.1%
4.8%
0%
14.3%
7.4%
54%
6.6%
74.1%
0%
6%
2.1% 17.4%
62.1% 69.9%
Table 7.
MC Market Composition by
Service Line (% of Turnover), 2010
19
3 Selected European
MC Markets
3.3.2 MC Market Composition by Service Line (million €), 2010
Table 8.
MC Market Composition by
Service Line (million €), 2010
Germany
France
Portugal
Austria
9 903
8 814
1 236
1 581
1 142
14 085
594
5 473
528
1 105
4 924
1 188
565
0
297
0
4 159
1 410
0
0
0
3 961
0
1 330
35
4 631
1 330
297
4 576
6 976
1 814
Total turnover
27 900
(million €)
Major service lines (€)
Business
15 066
Consulting (BC)
IT Consulting
4 325
Development &
5 441
Integration
Outsourcing
1 786
Other services
1 283
BC Details
Strategy
Organisation/
Operations
Management
Change
Management
Project
Management
HR Consulting
Total
United
Spain
Kingdom
19 009
Finland Switzerland
Ireland
Slovenia Hungary
Greece
1 056
438
271,1
215
208
715
n.a.
252
188
101
154
98
n.a.
74
34
77
10
0
105
n.a.
40
19
17
9
0
708
32
147
62
162
n.a.
n.a.
19
53
5
24
9
11
3
33
758
116
569
283
306
71
61
22
35
297
3 270
341
261
168
750
57
80
47
53
3 612
0
0
40
0
129
n.a.
69
12
17
55
1 981
912
0
1 260
0
0
58
n.a.
26
18
6
5
2 065
15 066
1 255
14 085
0
594
185
5 473
31
528
275
1 105
77
715
n.a.
1 056
30
252
18
188
9
101
5
154
Discrepancies in total BC of UK are based on differentiated calculation method.
3.3.3 Breakdown of MC in Selected Key Countries (million €), 2010 The breakdown of MC in four key countries is
presented in Figure 16. In Business Consulting
we find Germany closely followed by the UK
in dominating the market; the next two are
France and Spain. Regarding Development
and Integration, we find Germany in first place,
followed by Spain. The turnover of IT Consulting
Figure 16.
Breakdown of MC in Selected Key
Countries (million €), 2010
is the highest in the UK and Germany is second;
this is a change compared to last year. Outsourcing
proved to be a significant service line in Spain.
Surprisingly, in the UK in 2010 Outsourcing does
not appear, however, in 2009 in the UK it was the
second largest service line. Other Services only
appear in the case of Germany.
30 000
Total turnover in million €
25 000
20 000
15 000
10 000
5 000
0
20
Germany
United Kingdom
Spain
France
 Business Consulting (BC)
15 066
14 085
594
2 360
 Development & Integration
5 441
0
4 159
608
 IT Consulting
4 325
4 924
1 188
243
570
 Outsourcing
1 786
0
3 961
 Other Services
1 283
0
0
15
Total
27 900
19 009
9 903
8 814
MC Markets
3.3.4 Breakdown of Business Consulting in Selected Key Countries (million €), 2010
In further analysing Business Consulting (BC), we can
state that Strategy has strengthened its role in Germany, but lost in importance in the UK, France and
Spain. Organization/Operation Management (OM)
dominates the BC Market in the United Kingdom
and in France. Nevertheless, OM is back to back with
Strategy in Germany and accounts for the same as
Strategy in Spain. Change Management and Project
Management are close to each other in case of Germany. In the UK Change Management has strengthened its role at the expense of Project Management.
Human Resource (HR) Consulting enlarged its share
only in Germany and has lost some ground from its
previous importance in the UK and France
Figure 17.
Breakdown of Business Consulting
in Selected Key Countries
(million €), 2010
16 000
14 000
Total turnover in million €
12 000
10 000
8 000
6 000
4 000
2 000
0
Germany
United Kingdom
Spain
France

Strategy
4 631
1 330
297
758
O
rganisation/ Operations
Management
4 576
6 976
297
 Change Management
1 814
3 612
0
3 270
 Project Management
1 981
912
0
1 260
 HR Consulting
2 065
1 255
0
185
3.4 Analysis by Client Sector Considering the whole European MC Market, the
three most significant sectors were Public Sector,
Banking & Insurance, and Industry in 2010, the
same as in 2009, however, their order has changed.
In 2010 the Public Sector had 20.7%, Banking &
Insurance 20.1% while Industry 18.7% of the total.
3.4.1 MC Market Composition by Client Sector (% of Turnover), 2010 In 2010 the Public Sector was dominant in four
countries, in the United Kingdom, Ireland, Hungary
and Greece. Banking & Insurance was the most
Total turnover
(million €)
Industry
Banking & Insurance
Public sector
Aerospace & Defense
Telecoms & Media
Wholesale & Retail
Energy & Utilities
Transport & Travel
Healthcare
(pharmaceuticals &
biotech included)
Other
Total
Germany
United
Kingdom
Spain
27 900
19 009
9 903
32.4%
23.7%
10.1%
0%
8.2%
4.3%
7.6%
5.3%
6%
24.4%
29.9%
1.7%
3.6%
n.a.
9.7%
3.1%
6%
25%
16%
8%
17%
3%
11%
9%
3.5%
3.3%
2%
3%
France
important in the turnover in two countries, Spain and
France. Industry contributed to turnover to the highest
degree in Germany, Finland, Switzerland and Slovenia.
Finland
Switzerland
Ireland
Slovenia
Hungary
Greece
8 814
1 142
1 056
438
271.1
215
208
14.5%
30%
15%
3%
5%
5%
11%
4%
38.7%
5.1%
11.8%
0%
8.3%
9.4%
7.3%
2.8%
27%
26%
9%
n.a.
5%
5%
6%
5%
9.8%
21.6%
27.3%
0.1%
13.3%
3.8%
7%
4.7%
29.5%
14.5%
13%
n.a.
7.5%
7.5%
13.5%
2%
11%
25%
28%
0%
9%
8%
14%
1%
11.9%
5.6%
46.6%
0%
12.7%
6%
3%
1.9%
7.7%
15%
7.1%
5.5%
3%
2.8%
4.9%
3%
3%
8.6%
0%
2%
5.3%
7.5%
1%
9.5%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Table 9.
MC Market Composition by Client
Sector (% of Turnover), 2010
21
3 Selected European
MC Markets
3.4.2 MC Market Composition by Client Sector (million €), 2010
Table 10.
MC Market Composition by Client
Sector (million €), 2010
Germany
United
Kingdom
Spain
France
Finland
Switzerland
Ireland
Slovenia
Hungary
Greece
27 900
19 009
9 903
8 814
1 142
1 056
438
271.1
215
208
9 040
6 612
2 818
0
2 288
1 200
2 120
1 479
1 141
4 638
5 684
323
684
n. a.
1 844
589
594
2 476
1 584
792
1 684
297
1 089
891
1 277
2 644
1 322
220
441
441
970
353
442
58
135
0
95
107
83
32
285
275
95
n. a.
53
53
63
53
43
95
120
0
58
17
31
21
80
39
35
n. a.
20
20
37
5
24
54
60
0
19
17
30
2
25
12
97
0
26
12
6
4
977
627
198
264
88
158
31
15
6
6
1 367
570
297
758
0
21
23
20
2
20
Total turnover
(million €)
Industry
Banking & Insurance
Public sector
Aerospace & Defense
Telecoms & Media
Wholesale & Retail
Energy & Utilities
Transport & Travel
Healthcare
(pharmaceuticals &
biotech included)
Other
3.4.3 Key Market Composition by Client Sector In the four key countries the order of the client
sectors based on their turnovers in volume is as
follows:
In Germany the main purchaser of consulting
services is Industry, in the United Kingdom it is
the Public Sector, and in Spain and France it is the
Banking & Insurance sector.
Figure 18.
Turnover of Key Markets
by Client Sector
Industry in Germany generates turnover eight
times higher than this sector does in the UK.
The turnover in the UK generated by the Public
Sector exceeds more than twice its equivalent in
the other three key countries.
30 000
Turnover million euros
25 000
20 000
15 000
10 000
5 000
0
Total
 Aerospace & Defense
H
ealthcare
(pharmaceuticals & biotech included)
22
Germany
United Kingdom
Spain
France
27 900
19 009
9 903
8 814
0
323
792
220
977
627
198
264
 Wholesale & Retail
1 200
0
297
441
 Other
1 367
570
297
758
 Transport & Travel
1 479
589
891
353
 Energy & Utilities
2 120
1 844
1 089
970
 Telecoms & Media
2 288
684
1 684
441
 Public sector
2 818
5 684
1 584
1 322
 Banking & Insurance
6 612
4 638
2 476
2 644
 Industry
9 040
1 141
594
1 277
4Main Trends in Management
Consulting in 2010/2011
4.1 Austria
4 M
ain Trends in Management
Austria
Total turnover (million €)
The total turnover of the Management Consulting
market in Austria accounted for 1581 million € in
2010. As Austria did not participate in surveys in
previous years, we can only compare its current
results with other countries. The growth rate of
Austria was 9.8% in 2010 and this is the highest
rate among the examined countries. Among
key service lines Business Consulting dominates
with almost 70% and IT Consulting is the second
major service line. The 88.7% of the consultancy
assignments derive from the private sector.
Regarding Austria’s export activity, it exports
consulting services to countries within the EU
mainly (81.8%) but has almost one-fifth of is
volume with countries outside the EU (18.2%).
The number of consultants compared to total
employment in the MC sector stands at 58%.
Growth rates
4.2 Denmark
Denmark
In 2010 Denmark provided data concerning the
total turnover in 2010, which accounted for 1717
million €; their growth rate in 2010 was -1.5%. They
highlighted that the ratio of their assignments
coming from the Public Sector is 35.2%. Compared
to last year’s results this figure has decreased as in
2009 the Public Sector was the most significant one
with 43.7% followed by Industry.
Growth rates
1 581
Growth rate 2009
n.a.
Growth rate 2010
9.8%
Growth rate 2011 (prevision)
n.a.
Key service lines (%)
Business Consulting
69.9%
IT Consulting
23%
Development & Integration
0%
Outsourcing
Other Services
2%
5.1%
Key sectors (%)
Private sector
88.7%
Public sector
11.3%
Export (%)
EU
Countries outside the EU
17%
13.9%
3.1%
Number of consultants
37 740
Total staff
64 844
1 717
Growth rate 2009
-3.6%
Growth rate 2010
-1.5%
n.a.
Business Consulting
n.a.
IT Consulting
n.a.
n.a.
Outsourcing
n.a.
Other Services
n.a.
Key sectors (%)
Industry
Banking & Insurance
Public sector
n.a.
n.a.
35.2%
Export (%)
n.a.
EU
n.a.
n.a.
n.a.
Total staff
n.a.
23
4 Main Trends in Management
4.3 Finland
MC market in Finland generated 1142 million €
in 2010. This year’s data exceeded the turnover
of 2009 (1103.2 million €). In other words, Finland
produced a healthy 6% growth rate after last year’s
0.5%. While in 2009 some staff reduction took
place in the business, in 2010 the number of total
staff has increased and the number of consultants
with it also. Business Consulting dominated the
market with a 62.5% contribution to turnover,
getting ahead of Other Services (14.2%) and
Development & Integration (9.2%) which came in
second and third. In the private sector the demand
coming from Industry was remarkable, it created
the highest demand for MC, 38.7%, the demand
from the Banking & Insurance sector was quite
low (5.1%), but the results of the Public Sector
were higher than last year, in 2010 it accounted for
11.8%. Almost 70% of the export activity went to
countries in Europe; completed by export turnover
into countries outside Europe, export activity of
Finland altogether account for 26.8% of the total
rate of export activity of MC market in 2010.
4.4 France
By 2009 French firms described the recession in
past terms and this proved to be a self-fulfilling
prophecy as the growth rate for 2010 even
exceeded the forecast; it was 5% instead of the
previously forecasted 3%. Business Consulting
produced the largest part of the turnover (62.1%),
followed by Development & Integration (16%) and
Outsourcing (15%), IT Consulting contributed to it
with 6.4 percent. Regarding client sectors Banking
& Insurance leads the line (30%), Public sector is the
second (15%), closely followed by Industry (14.5%).
The export of consulting services of France mainly
focused on European countries (66.7%), but they
were present outside Europe as well (33.3%) which
together resulted in a 12% total export activity.
24
Finland
1 142
Growth rates
Growth rate 2009
0.5%
Growth rate 2010
6%
n.a.
Business Consulting
62.5%
IT Consulting
8.6%
9.2%
Outsourcing
5.4%
Other Services
14.2%
Key sectors (%)
Industry
38.7%
Banking & Insurance
5.1%
Public sector
11.8%
Export (%)
26.8%
EU
18.7%
8.1%
6 847
Total staff
11 860
France
8 814
Growth rates
Growth rate 2009
-7%
Growth rate 2010
5%
6%
Business Consulting
62.1%
IT Consulting
6.4%
16%
Outsourcing
15%
Other Services
0.4%
Key sectors (%)
Industry
Banking & Insurance
14.5%
30%
Public sector
15%
Export (%)
12%
EU
8%
4%
n.a.
Total staff
n.a.
4 M
4.5 Germany
The total turnover of the German MC market
increased to 27 900 million euros in 2010 which
means that there was only one year (2009) when the
upward tendency in the growth of their turnover
experienced some setback. By 2010 the German
MC market experienced a 5.3% growth again. It is
worth mentioning that their forecast concerning
their growth rate for 2010 was 5.3% which means
represents a solid prognostication system. Of he
total turnover Business Consulting generated 54%,
followed by Development & Integration which
accounted for 19.5%. The key client sector in 2009
was Industry, having generated a 32.4% demand
for MC services. Banking & Insurance performance
was also remarkable recording 23.7%. For its
exports, Germany focused on countries outside
Europe (60%), with the remainder (40%) directed
to European countries. The number of total staff
working in the field of MC increased by 7000
compared to last year and this change encompassed
exclusively consultants, not supporting staff.
(for further information see: Facts&Figures zum
Beratermarkt 2010/2011 www.bdu.de).
4.6 Greece
For Greece, the high growth rate (9%) in 2008
turned negative (-9.2%) in 2009 and this downfall
gained further momentum in 2010 with a decline
of -11.2%. Business Consulting highly dominated
the market, covering the 73.9% of key service lines.
Regarding the key client sectors, Public Sector
(46.6%) and Industry (11.9%) are the largest.
Greece’s export activity was remarkable (21.1%),
from which European countries accounted for
three-fifth and non-European countries for twofifth of the total. The number of total staff working
in the field of MC was 1770, with 110 people less
than in 2009, and included mainly consultants
(1551) and only few support staff.
Germany
27 900
Growth rates
Growth rate 2009
-2.7%
Growth rate 2010
5.3%
n.a.
Business Consulting
54%
IT Consulting
15.5%
19.5%
Outsourcing
6.4%
Other Services
4.6%
Key sectors (%)
Industry
32.4%
Banking & Insurance
23.7%
Public sector
10.1%
Export (%)
15%
EU
6%
9%
135 500
Total staff
185 000
Greece
234
Growth rates
Growth rate 2009
-9.2%
Growth rate 2010
-11.2%
-3%
Business Consulting
73.9%
IT Consulting
4.6%
4.1%
Outsourcing
1.5%
Other Services
15.9%
Key sectors (%)
Industry
11.9%
Banking & Insurance
5.6%
Public sector
46.6%
Export (%)
21.1%
EU
12.9%
8.2%
1 551
Total staff
1 770
25
4.7 Hungary
Hungary
The total turnover of the Hungarian Management
Consulting market was 215 million Euros (30
m € less than in 2009) and the growth rate for
the Hungarian MC market was -12%. Hungary
predicted a -10% growth rate for 2010 in the
previous year, thus revealing a realistic forecasting
scheme. The anticipation for 2011 is more
optimistic, with a growth rate of 2.5% projected
for 2011. The dominant category proved to
be Business Consulting (47%), followed by IT
Consulting (36%) in 2010. In terms of the client
base, the Public Sector was in first place (28%),
closely followed by Banking & Insurance (25%).
Still, the Public Sector lost in importance as in
2009 about 40% was connected to this sector. In
regard to export activity over four-fifth of the total
is directed to countries within Europe. Consultants
dominate heavily over supporting staff as can be
seen in the ratio of 4400 to 4800.
26
215
Growth rates
Growth rate 2009
-22.2%
Growth rate 2010
-12%
n.a.
Business Consulting
47%
IT Consulting
36%
8%
Outsourcing
4%
Other Services
5%
Key sectors (%)
Industry
11%
Banking & Insurance
25%
Public sector
28%
Export (%)
23%
EU
19%
4%
4 400
Total staff
4 800
4 M
4.8 Ireland
Prospects for growth in the Irish economy continue
to depend on external conditions as well as
the impact of fiscal adjustments and banking
restructures being implemented domestically.
Ireland
438
Growth rates
Growth rate 2009
-2%
Growth rate 2010
-7%
n.a.
The global economic recovery continues at an
uneven pace, with moderated growth in advanced
economies and strong growth in developing
economies.
Business Consulting
57.6%
IT Consulting
16.8%
9.1%
Significant progress has been made domestically
on the main challenges facing the economy
with fiscal developments to mid 2011 in line
with expectations and progress achieved in recapitalising and restructuring the banking sector.
Key sectors (%)
The competitiveness of the Irish economy
continues to improve reflecting price and cost
developments – stable wage levels relative to most
trading partners - and strong productivity growth.
Structural reform targeted in the public sector and
certain private services sectors has the potential to
boost growth over the medium-term.
2%
3 060
Total staff
3 427
GDP declined by 0.4% in 2010 with an increase
of 1.8% projected for 2011 driven by exports
performance offset by a decline in domestic
demand. Employment is expected to contract by
1.7% in 2011 with a decline in the labour force
of 1% mitigating the impact on unemployment,
projected at 14.2%.
The decline in demand affected the consultancy
sector in 2010 with business volumes down an
estimated 7%.
A Central Statistics Office survey in 2010, with
limited data indicates prices, i.e. fee rates, being
down 0.7% in a category which includes Business
Management Consultancy and up 1.9% in
Computer Programming and Consultancy.
A survey of IMCA members indicated that the
consultancy market is projected to recover slightly
in 2011. Large practices were more positive than
small practices and sole practitioners. Projections
for Strategy consultancy are positive and the
outlook by sector is particularly pessimistic for
Central Government, Other Public Sector and SMEs.
A slight increase in consultancy employment
was projected for 2011 with uncertainty re future
prospects seen as the main constraint to growth.
Outsourcing
4.4%
Other Services
12.1%
Industry
9.8%
Banking & Insurance
21.6%
Public sector
27.3%
Export (%)
8%
EU
6%
consultants respectively due to more accurate
data - is due to extra practices reported rather than
market growth. Outsourcing and Development &
Integration are under-reported and if included fully
would increase turnover and employment for both
years.
These figures again show management
consultancy in Ireland to have a smaller share of
the economy than most other European countries
(0.3% of GDP ROI 2010 vs. FEACO average of 0.7%
in 2009). This may be due to Ireland’s high element
of multi-national enterprises with overseas HQs
and a relatively weak indigenous sector. Smaller
economies also tend to be less consultancyintensive as seen in the FEACO data.
The market is primarily domestic with only 8%
exported to Europe or elsewhere.
By service area, Management Consulting comprises
56% of the market with IT Consulting a further
17%. Outsourcing appears to be under-reported at
4% of the total (vs. 34% in the UK 2009).
By sector, Public Sector consultancy is largest at
27% with Banking & Insurance at 22% and Industry
at 10%.
Total turnover in the consultancy market in Ireland
is projected at €438m for 2010 with a consultant
employment of 3,060. The increase over the
previous data – restated at €419m and 2,806
27
4.9 Italy
Management Consulting in Italy is a highly fragmented market, with more than 16 000 companies developing a total turnover of slightly more
than 3 bn Euros.
Italy
3 044
Growth rates
Growth rate 2009
n.a.
Growth rate 2010
-0.8%
9.4%
There are 35 top players - i.e. companies with more
than 50 employees and on the other side, there
are 14 000 micro companies (with up to 2 employees), among these two large clusters there exists a
group of 2500 midsized companies.
Business Consulting
n.a.
IT Consulting
n.a.
n.a.
Outsourcing
n.a.
Other Services
n.a.
In 2010 the Italian market shrunk for the second
year in a row at a -0.8% rate (in 2009 the market
decreased by 5%). The largest companies suffered
the most from the economic downturn, with a decrease in their turnover of more than 5%. Smaller
companies managed to remain stable or enjoyed
a limited growth. In more general terms, 2010 witnessed a significant reshuffling in market shares
among various players: almost 25% of the companies suffered a decrease in turnover of more
than 10%, while, on the other side, 35% of them
enjoyed a growth in excess of 10%.
Industry
n.a.
Banking & Insurance
n.a.
All the players have buoyant expectations for
2011: the estimated turnover growth is close to
10%, and only 13% of the companies interviewed
forecast a further decrease in turnover.
The market for Management Consulting in Italy is
clearly divided between large and a combination
of medium and small companies:

28
T he top 35 firms have 80% market share of
the consulting budget spent by large corporations (groups of 500 mln turnover and more),
and are mostly focused on the services market:
they own 79% of the banking and insurance
market, 77% of Utilities, and 66% of communications, media and entertainment
Key sectors (%)
Public sector
n.a.
Export (%)
8.9%
EU
8.9%
0%
27 290
Total staff
33 344


S mall and medium business are focused on
small-medium clients (they own 96% share of
companies with less than 50mln euro turnover), and have a significant presence in industrial sectors, where they develop 50% of their
turnover
A
number of mid-sized companies compete
with large consulting firms in the large corporate market, thanks to a very focused strategy
of niche specialization
Italy suffers from a structural issue of underinvestment in the Public Sector: only 13.5% of consulting turnover in Italy is generated by Healthcare
and Public Sector.
4 M
4.10 Portugal
The Portuguese economy was greatly affected
by the global crisis in 2009. Nevertheless the MC
market could recover very quickly as in 2010 this
MC market could attain a 4.8% growth rate. The
total turnover was 1236 million euro with key
service lines being Other Services (57.3%) and
Business Consulting (42.7%). In 2009 there was
a challenge for the Portuguese economy including the MC sector, to develop export activities.
In 2010 export accounted for 13.1% which compared to previous year’s 8.3% can be considered
a good result. The number of people employed
by the MC market was 15423 from whom 9254
were working as consultants. This means that the
number of people employed in this sector has decreased by almost 2000.
4.11 Romania After eight years of a nice, sustainable growth pace,
the Romanian management consulting market
experienced a downturn in 2009. The really high
growth rate of 30% in 2008 turned into a decrease
of 16% in 2009. This dramatic change did not
continue, but a modest downfall can still be seen
in 2010. However, there is an optimistic mood,
with expectations for a 20% growth rate in 2011.
The majority of clients in the recent past came
from the Public Sector (35.2%). Romania reported
data a 12.8% rate for export activity for 2010; of
this, four-fifth was targeted countries within the
EU and one-fifth was directed to countries out of
the EU. The number of total staff working on MC
market did not change at all, it was 10 000 in 2010
and 80% of those worked as consultants, 20% as
supporting staff.
Portugal
1 236
Growth rates
Growth rate 2009
n.a.
Growth rate 2010
4.8%
n.a.
Business Consulting
42.7%
IT Consulting
0%
0%
Outsourcing
Other Services
0%
57.3%
Key sectors (%)
Industry
n.a.
Banking & Insurance
n.a.
Public sector
Export (%)
EU
n.a.
13.1%
5.1%
8%
9 254
Total staff
15 423
Romania
325
Growth rates
Growth rate 2009
-16%
Growth rate 2010
-7%
20%
Business Consulting
n.a.
IT Consulting
n.a.
n.a.
Outsourcing
n.a.
Other Services
n.a.
Key sectors (%)
Industry
Banking & Insurance
n.a.
n.a.
Public sector
35.2%
Export (%)
12.8%
EU
10.3%
2.5%
8 000
Total staff
10 000
29
4.12 Slovenia
Growth in some industry sectors, increased demand
in the banking sector for necessary restructuring,
new products, cost reduction and increased demand for special knowledge were the main demand
drivers for MC in 2010. On the other side, cost reduction schemes in both private and public sector,
lack of (liquid) assets, short term oriented clients and
strong pressure on fees in public sectors were factors
with highly negative effects.
Growth rates
Clients demanded solutions for business optimisation, cost reduction, market positioning and new
markets, risk and change management, project
management and several lines of human resource
or HR management (communication, leadership,
team work, focused training, motivation, and payment schemes).
Key sectors (%)
It is expected that this demand structure is not going to change considerably in 2011, but Strategy
Consulting should experience good growth and clients will pay again more attention to growth and
innovation.
It is now expected that consultants will deliver additional value for the agreed project and fee.
Clients are generally seen as less loyal than before
and long term relations can change suddenly. In spite
of general and strong pressure on charges, however,
some MC firms are able to increase their fees.
Consulting firms will have to meet many challenges
as new rivals arise and clients demand more value
from their suppliers. Consultants will also have to
increase their presence in foreign markets and find
appropriate local partners.
In 2010 the impact of recession led to decreased
economic results in global terms. In spite of a certain degree of revival in some export oriented sectors the general picture was worse than at the end
of 2009. Management consulting firms had to cope
with unstable and deteriorating market that affected at least one third of them. Their income – in total
- was still a bit higher than in 2009 and amounted
to 271 m €. About 15% of the income was realised
outside Slovenia, half of this hare within the EU
countries. The number of consultants slightly grew.
But it was clearly stated that a significant upturn is
still to come.
Management consulting amounted to roughly 70%
of the total income. The structure of individual service lines was not changed a great deal. As expected,
the share of Strategy Consulting was again reduced
while Organisation /Operations Management
30
Slovenia
271
Growth rate 2009
1.5%
Growth rate 2010
1.1%
n.a.
Business Consulting
69.5%
IT Consulting
12.5%
7%
Outsourcing
2%
Other Services
9%
Industry
29.5%
Banking & Insurance
14.5%
Public sector
Export (%)
EU
13%
15.5%
8%
7.5%
2 713
Total staff
3 099
reached a higher share. Among other consulting
services the demand for Executive Recruitment Consulting decreased quite considerably.
Industry remained the most important client (in
spite of a relative decrease in comparison with 2009)
and is followed by Banking and Insurance, while
Public Sector remains in third place but with a smaller share than before.
In general terms, 2011 is unlikely to be better than
the previous year without a strong revival of investment demand that could incite growth in a set of
complementary industry sectors. The nation is expecting a growth of 2% in its GDP; but appropriate government decisions and action are needed
to achieve that. Until then, some sectors and a
number of individual firms remain in n uncertain,
risky situation.
The Public Sector is not capable to improve its worsening image as less important and respected client.
Decreasing demand, not sufficient quality level of
public procurement and unlimited pressure on fees
not only deteriorate market conditions, but start to
harm the MC sector as a whole. It I possible that existing networks may develop and result in mergers.
Consultants are expected to foster innovation processes and to offer efficient new business models, capable of coping with major changes in the economy
and in society.
MC firms will have to focus on foreign markets much
more ambitiously and with necessary new skills, succeeding to find able and trustworthy local partners.
4 M
4.13 Spain
Turnover for the industry increased 3,5% in 2010
contrasting with the stagnation of 2009. The domestic market remained unchanged in 2010, but
the external market increased strongly.
Spain
9 903
Growth rates
Growth rate 2009
n.a.
Growth rate 2010
3.5%
n.a.
For 2011 it is estimated that the industry will once
again see a small increase in sales as in 2010 because of external markets.
Business Consulting
6%
IT Consulting
12%
42%
Outsourcing
40%
The present economic crisis in Spain has put today’s clients in a consolidation and maintenance
period, which makes it necessary to delay new
projects of investment.
Other Services
0%
Public sector
16%
To overcome this situation, the Spanish consulting
sector has gone abroad looking for new business
opportunities. Many Spanish firms have implemented a strategy of internationalization, either by
creating overseas subsidiaries or by competing for
projects on the international market. This strategy
has brought the increase of revenues and profits.
This consulting industry’s strategy, has increased
the total turnover by a 3,5%.
Export (%)
21%
EU
11%
10%
The employment in the MC sector has increased
more than the turnover and the margins per employee have fallen down.
Public Sector incomes have fallen because the
budgets have been cut down and it has been a
strong Public Administration investment reduction in the domestic market. The opposite situation happened in other countries, mainly in South
America.
Another driver of this market during 2010 comes
from cost optimizing policies that bring about
services related to IT outsourcing, development
and integration, and, to a smaller extent, business
consulting, all of them pointing to the fundamental goal of being more efficient.
Key sectors (%)
Industry
6%
Banking & Insurance
25%
Total staff
application management, business process reengineering, efficiency and customer relation management.
In this juncture, where domestic clients’ capacity
of investment has diminished for reasons of uncertainty and crisis, the consulting market faces
important challenges including:




Some of the main clients of the consulting market
are Banking & Insurance companies, which represented a 25% market share in 2009, followed by
the Public Sector at 16% market share, and then
the Telecom sector at 15%. The main part of the
services offered to these three markets is related
to cost reduction, infrastructure consolidation,
n.a.
119 000
increasing capacity for further internationalization.
supporting clients’ businesses principal needs,
which mainly consist of cost reduction and business consolidation.
helping the Public Sector to improve its processes, by being more efficient and developing
its capabilities.
focusing part of their services towards business
consulting, so that they will not lose future perspective.
The clients’ main objectives for the next years are:
internationalisation, cost reduction, business consolidation, and customer relation management
optimization.
31
4.14 Switzerland
The total turnover of MC market in Switzerland
was 1056 million € in 2010. The MC market
experienced a 5.6% growth rate, more than was
expected in 2009. They forecast a 6% growth
rate for 2011. In 2011 the Swiss differentiated
the service line of Strategy with Organizations
management including IT Consulting; these two
together cover the whole Swiss market (Strategy
29%, Org.Mgmt including IT Cons. 71%).
Industry overtook financial sector in 2011, so
it has become the largest sector in Switzerland
concerning MC services (27% Industry, 26%
Banking and Insurance). Regarding their export,
Switzerland has an outstanding rate of 21%, out
of which four-fifth is directed to countries within
the EU. In 2010 the number of total staff was
4120; of these 3520 worked as consultants.
4.15 United Kingdom
Switzerland
Growth rate 2009
-4%
Growth rate 2010
5.6%
32
6%
Strategy
29%
Organization mgmt incl. IT consulting
71%
n.a.
Outsourcing
n.a.
Other Services
n.a.
Key sectors (%)
Industry
27%
Banking & Insurance
26%
Public sector
9%
Export (%)
21%
EU
17%
4%
3 520
Total staff
4 120
United Kingdom
The year 2010 turned out to be better for the
UK Management Consulting market than it was
expected. They anticipated a 4% negative growth
rate; the actual growth rate in 2010 turned out to
be a small but positive 1%. This resulted in almost
200 million € growth in total turnover compared
to the level of 2009. In 2010 the total turnover
of UK MC market was 19 009 million €. Business
Consulting remained the most important service
line (74.1%), with IT Consulting; together they
cover the whole MC market. The most remarkable
client sector was Public Sector (29.9%) followed
by Banking & Insurance (24.4%). The role of
export activity of the MC market in the UK has
strengthened also, from last year’s 7% to 10% in
2010 (three-fifth of which directed to countries
within the EU, two-fifth to countries out of the
EU). There was a drastic reduction in the number
of staff working in the field of Management
Consulting. While in 2009 the MC market could
employ 64 717 people, 56 360 of whom worked
as consultants, in 2010 they reported that the
number of the total staff decreased to 36 789, out
of whom 35 663 were consultants.
1 056
Growth rates
19 009
Growth rates
Growth rate 2009
-6%
Growth rate 2010
1%
n.a.
Business Consulting
74.1%
IT Consulting
25.9%
0%
Outsourcing
0%
Other Services
0%
Key sectors (%)
Industry
6%
Banking & Insurance
24.4%
Public sector
29.9%
Export (%)
10%
EU
6%
4%
35 663
Total staff
36 789
5About FEACO, the European
Federation of Management
Consultancies Associations
FEACO, the European Federation of Management Consultancies Associations, a non-profit
organisation, was established in 1960 and has
17 national member associations as members:




fi fteen from the European Union: Austria,
Croatia, Cyprus, Czech Republic, Finland,
France, Greece, Hungary, Italy, Poland, Portugal, Romania, Slovenia and Spain;
one from EFTA: Switzerland;
one associate member: Bosnia & Herzegovina;
one affiliate member: Hong Kong.
FEACO is a European organisation. Its general
purpose is to assist in the promotion and development of the profession of Management Consultancy in Europe by providing support to its
constituent National Association membership in
those areas where a collective voice is stronger
than the sum of its individual members.
Main objectives of FEACO are

The development of the Management Consultancy market, raising its image and profile at
European and international level, by the promotion of common professional ethics, quality
and best practice.


5 A
bout Feaco, The European
Federation of Management
Consultancies Associations
T he promotion of the interests of Management Consultancy with the different European and International organisations, by
maintaining a close relationship with the European Institutions and other pan-European
and international organisations in order to
ensure an awareness of and defend professional interests (not including lobbying for
sales opportunities).
T he development of a dynamic forum for networking and service provision, by encouraging
networking by members and between members through the sponsorship and organisation
of conferences and meetings, the establishment of mutual interest working groups and
through close cooperation with other consultancy organisations.
2010-2011 Events
The FEACO 2012 is published and updated at the
FEACO homepage at www.feaco.org.
Contact:
Kim Karme (Member of ExCo.)
David Ifrah (Secretary General)
feaco@feaco.org
33
6 Member Associations
6Member Associations
Fédération Européenne des Associations de Conseils en Organisation
European Federation of Management Consultancies Associations
FEACO
Full Members
AUSTRIA Fachverband Unternehmensberatung und
Informationstechnology / Austrian Professional
Association of Management Consultancy
and Information Technology
Wiedner Hauptstrasse 63 A – 1045 Vienna Austria
Phone: +43 5 90 900 3540
Fax: +43 5 90 900 3178
Email: ubit@wko.at / office@incite.at
Website: http://www.ubit.at / http://www.incite.at
Contacts: M
r Alfred Harl, President
Mr Philipp Graf, Executive Director
POLAND SDG
Stowarzyszenie Doradcow Gospodarczych w Polsce
Ul. Emilii Plater 53 p XIII loc 1360
PL- 00-113 Warsaw
Phone: 48 509 382 481
Fax: 48 22 520 6200/05
Email: sdg@sdg.com.pl
Website: www.sdg.com.pl
Contact: Mr Krysztof Grzybowski
PORTUGAL APPC
Associaçăo Portuguesa de Projectistas e Consultores
CROATIA HUPS-CAMC
Avenida Antonio Augusto Aguiar 126 – 7th floor
Hrvatska Udruga Poslovnih Savjetnika / Croatian Association of P – 1050-020 Lisbon
Management Consultans
Phone: 351 21 358 0785/6
Amruseva 8 HR-10000 Zagreb
Fax: 351 21 315 0413
Phone: +385 1 5505809
Email: info@appconsultores.org.pt
Fax: +385 1 5505803
Website: www.appconsultores.org.pt
Email: info@ups-amc.org / gordan.kolak@comitium.hr
Contacts: M
r António Seixas de Aguiar
Website: http://www.ups-amc.org
Mr. Manuel Batista
Contact: Mr Gordan Kolak
Ms Manuela Lourenço
CYPRUS
CYBCA
Cyprus Association of Business Consultants
30, Grivas Dhigenis Ave.
P.O. Box 21657
1511 Nicosia
Phone: 357 22 665 102
Fax: 357 22 669 459
Email: info@oeb.org.cy
Contact: Mr Angelides Kyriacos
CZECH APP
REPUBLIC Association for Consulting to Business
Veletřzni 21
CZ -170 00 Prague 7
Phone: 420 2 20 87 90 43
Fax: 420 2 20 87 90 43
Email: asocpor@asocpor.cz
Website: www.asocpor.cz
Contact: Mr Jan Zavrel
FINLAND LJK
Liikkeenjohdon Konsultit LJK ry
World Trade Center, PO Box 800,
FI-00101 Helsinki
Phone: +358 (0) 9 622 4442
Email: ljk@ljk.fi
Website: www.ljk.fi
Contact: Mr Kim Karme (President)
FRANCE SYNTEC
Conseil en management
3 Rue Léon Bonnat
F - 75016 Paris
Phone: +33 1 44 30 49 20
Fax: +33 1 40 50 73 57
Website: www.syntec-management.com
Contacts: Mr Hervé Baculard / Mr David Ifrah
GREECE SESMA
Hellenic Association of
Management Consulting Firms
101, Vas. Sophias Ave, Mavili Square
GR – 115 21 Athens
Phone: 30 210 647 0660
Fax: 30 210 647 0661
Email: sesma@hol.gr
Website: www.sesma.gr
Contacts: Mr Pantelis Koukos / Mrs Maria Tsioumani
34
HUNGARY VTMSZ
Association of Management Consultants of Hungary
14. Október 6. utca
H–1051 Budapest
Phone: +36 20 922 4241
Fax: +36 1 269 1920
Email: office@vtmsz.hu / baukovacz.krisztina@vtmsz.hu
Website: http://www.vtmsz.hu
Contacts: Ms Krisztina Baukovácz / Ms Éva Borbarát
Ms Mariann Schainpauer
ITALY ASSOCONSULT
Associazione Federativa Imprese di Consulenza
Viale dell’Astronomia, 30
00144 Roma - Italy
Phone: 39 06 97616704
Fax: 39 06 96048780
Email: info@assoconsult.org
Website: www.assoconsult.org
Contact: Mr. Ezio Lattanzio
ROMANIA AMCOR
Asociatia Consultantilor in Management
din Romania
S47-49 Ion Brezoianu St, Entr B. level 2,
Appt. 166, 1st district
010134 Bucharest
Phone: 40 21 311 5175
Fax: 40 21 311 5175
Email: office@amcor.ro
Website: www.amcor.ro
Contacts: Mr Mihai Svasta / Ms Raluca Hău
SLOVENIA AMCOS
Association of Management Consultants of Slovenia
Dimiceva 13
SI -1504 Ljubljana
Phone: 386 1 5898252
Fax: 386 1 5898100
Email: majda.dobravc@gzs.si / zmcs-amcos@gzs.si
Website: h
ttp://www.gzs.si/zpsd
http://amcos.gzs.si
Contacts: M
r Andrej Drapal / Mr Borut Potocnik
Mrs Majda Dobravc
SPAIN AEC
Asociación Espańola de Empresas de Consultoría
C/ Monte Esquinza 34 2° B
E - 28013 Madrid
Phone: 34 91 308 0161
Fax: 34 91 391 3593
Email: consultoras@consultoras.org
Website: http://www.consultoras.org
Contacts: Mr Eduardo Mendicutti / Mr. Jordi Casals
SWITZERLAND ASCO
Association of Management Consultants Switzerland
Weinbergstrasse 31
CH - 8006 Zürich
Phone: 41 (0)43 343 94 80
Fax: 41 (0)43 343 94 81
Email: office@asco.ch
Website: http://www.asco.ch
Contact: Ms Bettina Fritschi
Associate Member
BOSNIA AND LESPNET
HERZEGOVINA Association of Business Consultants in Bosnia and Herzegovina
Branilaca Grada 47/3
71000 Sarajevo
Phone: 387 33 222 854 / 442 567
Fax: 387 33 442 567
Email: lespnet@lespnet.ba / lespnet@bih.net.ba
Website: http://www.lespnet.ba
Contacts: Mr Fikret Hadzic / Mr Edin Alic
Affiliate Member
HONG KONG MCAHK
Management Consultancies Association of Hong Kong
14th Floor, Room 1403B
9 Queen´s Road Central
Phone: +852 2856 0038
Fax: +852 2565 6628
Email: mcahk@mca.org.hk
Website: http://www.mca.org.hk
Contacts: Mr. K K Yeung, JP / Mr. Marcello de Guisa
7Appendix – Definitions
1. European MC Market:
Austria, Belgium, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark,
Finland, France, Germany, Greece, Hungary, Ireland, Italy, Netherlands, Norway, Poland, Portugal, Romania, Slovenia, Spain, Sweden, Switzerland, United Kingdom
Insurance: insurance carriers, agents, brokers
and services
2. Participants in the Feaco survey 2010/2011:
Austria, Bulgaria, Denmark, Finland, France,
Germany, Greece, Hungary, Ireland, Italy, Portugal,
Romania, Slovenia, Spain, Switzerland, United
Kingdom
Pharmaceuticals and biotech: pharmaceuticals manufacturers and biotech companies, including biofuels
3. Nordic region:
Denmark, Finland, Norway, Sweden
4. Central & Eastern Europe:
Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus,
Czech Republic, Greece, Hungary, Poland, Romania, Slovenia
5. Western Europe:
Austria, Belgium, Ireland, Italy, Netherlands, Portugal, Switzerland
Industry Sector:
Aerospace and Defense: includes commercial
and defense aerospace, airlines and airports and
space (civilian) and related manufacturing and
associated research
Automotive Products: automotive (motorized
road transport vehicles) manufacturers, suppliers, systems integrators and distributors
Consumer Products: food and tobacco products, textile & apparel, beauty & toiletries, metal
(except machinery & automotive products and
equipment) wood & furniture, paper and printed
products
High Tech Products: all cutting edge technology: including cutting edge technology used in
civilian and defense related aerospace
Machinery
Chemicals
IT hardware, software & computer services
Other industries
Banking and Insurance Sector:
All Banking and Financial services: including
commercial banks, investment managers, mutual
funds companies, brokerage firms, investment
banks, private banking and trust companies, saving banks, credit unions, mortgage banking companies, international banks and finance companies
7 Appendix – Definitions
Healthcare, pharmaceutical and biotech:
Healthcare: providers (hospitals and physicians),
payers (insurance companies and HMOs) and distributors (of medical equipment and supplies)
Wholesale& Retail Sector:
Wholesale & Retail: all distribution incl. luxury
retailers, specialty retailers, mass merchandisers,
discount retailers, grocery chains, convenience
stores, drug chains, car dealers, restaurants,
home improvement chains, catalogue retailers
and etailers of durable and non-durable goods
such as building materials, hardware, general
merchandise, food, automotive dealers, apparel
and accessories, furniture, food & drink etc…
Transport & Travel Sector:
Transport/travel includes all transport by air,
road or water of goods or passengers: private
transportation organisations (travel and urban
transport), carriers and shippers as well as logistics services companies
Telecoms and Media Sector:
Communication/Media/Entertainment: publishers, entertainment companies, record labels;
all communications not being telecommunications
Telecommunications
Energy & Utilities Sector:
Energy: petrol and gas extraction, coal, mining,
clean energies (solar, wind) excluding biofuels
(=biotech); chemicals & petrochemicals
Utilities: production and distribution of electricity, gas and water (incl. irrigation systems and
sewage treatment)
Public Sector: services provided to all levels of
the public sector: local, regional, national and EU.
Other Sectors:
Not for Profit Private Sector
Business services
All other sectors (not industry sectors)
35
Notes
36
Notes
Notes
37
3/4/5 Avenue des Arts
B-1210 Brussels (Belgium)
Telephone: 32-2-250-0650
Facsimile: 32-2-250-0651
E-mail: feaco@feaco.org
Internet: www.feaco.org
Project management:
Kim Karme (Member of ExCo.)
Layout: MOLiPress, Hungary
FEACO has used its best effort in collecting
the information published in The Survey of
the European Management Consultancy
Market 2010/2011. FEACO does not assume,
and hereby disclaims any liability for any loss
or damage caused by errors or omissions in
their surveys, whether such errors result from
negligence, accident or other causes.
Notice: No part of this publication may be
reproduced, stored in a retrieval system or
transmitted by any means, electronically
or mechanically, without the prior written
permission of FEACO.
Price EUR200 (VAT Excl.)

FEACO`s Survey of the European Management Consultancy 2010

Transcription

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