The current turmoil in the financial markets has reinforced a message clients have been trying to communicate for some time, that this remains a challenging market for consulting firms. Until recently, surging demand in the financial services sector, driven by regulation and restructuring, has been offsetting shrinking public sector consulting budgets in most major markets, masking relatively weak demand elsewhere in the private sector. Now, with slow – if you like, more normal – rates of growth in the financial
services consulting market, the scale of the problem facing consulting firms is becoming more apparent.

Buoyed by the optimism engendered by economic recovery, the vast majority of firms we interviewed for our 2011 EMEIA Management Consulting Market Report in the spring were expecting to grow; many were aiming at double-digit growth and, in general, the larger the firm, the more ambitious its plans. We remarked then on the extent to which these plans cumulatively outstripped the market’s potential for growth: some firms would succeed, but only by taking market share from others. There simply wasn’t the headroom for every firm to stand taller. Those comments are even more pertinent now, as it becomes clear that, overall, the second half of 2011 will feel very different from the first half.

Drawing on some of the key themes in our recent report, the purpose of our new report, Planning for Growth in an Uncertain Market explores consulting firms’ options for growth.  To receive a copy of this free report, please email alice.noyelle@sourceforconsulting.com.

In the meantime, you might want to spend a few minutes watching the video below, in which Fiona Czerniawska discusses the findings of the report.