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The UK management consultancy industry is
currently enjoying a boom. The Management Consultancies Association (MCA),
which represents most of the larger consultancies, states that its members'
consultancy fee income (excluding facilities management) rose by 13.7 percent in
1996.
The MCA estimates that the whole UK consultancy market was worth
around £3bn in 1996. However, Key Note estimates that if outsourcing and
other professional services (with a consultancy element), such as product
development, marketing and public relations (PR) are included, then the market
was worth around £5.55bn in 1996.
The major market segments are:
information technology (IT), strategy, change management, organisation
development, production and services management, and finance and
administration. Outsourcing is a segment all of its own.
The principal
consultancy providers are IT companies and IT-based consultancies,
accountancy-based consultancies, medium-sized consultancies and smaller
independent, often niche-based consultancies. In addition, there are a
substantial number of smaller consultancies, sole practitioners and business
school-based consultants.
By industry sectors, the strongest sectors
remain financial services, the utilities, the manufacturers of consumer goods
and the providers of consumer services, especially retailing and tourism.
The second half of 1996 and the first half of 1997 saw a substantial number
of acquisitions, along with a wave of announcements about the opening of more
overseas offices, especially in Asia. There is also evidence of the larger
firms regrouping their activities to match the rising requirements of their
clients. Several of the medium-sized consultancies are going through a period
of major change.
Key Note estimates that the UK market for consultancy
will grow strongly during the remainder of 1997, and that in 1998 it will grow
by 7 percent in value.
Text © 1997 Key Note
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Last updated by Duncan Nottage 5th March 1999