Consulting firms have always competed with one another for talent, but according to new research from Source and Penna, there are a growing number of consultants leaving the industry to work for clients. The report, “A new front in the war for Talent” found that 76 per cent of consulting firms believe clients are actively trying to attract consultants away from their firm and 30 per cent have already changed their business model in response to this new front.

These figures demonstrate a continuing demand for consulting skills at a time when many clients are keen to spend less with consulting firms. According to the report, one of the factors behind this demand is the growth in popularity of internal consulting divisions, which have narrowed the distinction between a consulting firm and client and led to changes in what a client needs from a consulting firm. Client demand is now for high-level consulting talent with even more experience than their in-house team and for consultants, typically at a more junior level, who can plug gaps in the client’s own internal resources.

Edward Haigh, Director at Source and author of the report, said: “Instead of the traditional pyramid-shaped consulting firm, clients want one that’s more like an hour-glass – biggest at the top and bottom, but pinched in the middle.”

Sally Wilson, Head of Penna’s Associate Consulting Practice, also noted that: “As consulting firms have shifted their emphasis towards junior talent, there has also been an increase in demand from our consulting clients for experienced associates to deliver work. The flexibility of the associate model appeals to clients who can draw on resources as and when they need it”.

Additional findings from the report include:

Just 15% of respondents from consulting firms said that remuneration was now one of the most effective ways to attract talent away from industry. More effective are thought to be diversity of work (35%) and the opportunity to work alongside high-quality consultants (25%)

58% of new recruits into the consulting industry come from consulting firms rather than clients (23%), showing that where recruitment is concerned, competition remains between consulting firms.