| Management Consulting careers: what the events of 2005 mean for you |
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| | The management
consultancy sector has
suffered a rollercoaster
ride in recent years,
plummeting from the
dot-com highs in 2000 to
a lengthy period in the
doldrums. The green
shoots of recovery only
started to sprout in
late 2003 after a couple
of years of lay-offs and
pay cuts in consulting.
But none of us really
had a spring in our step
back then. Even 2004
witnessed only a modest
recovery, with demand
patchy both
geographically and
across sectors.
2005, by contrast,
has been the year of the
solid rebound. Here's
our take on the highs
and lows of the year and
what they mean for your
consulting career:
Positives for your
consulting career
Client demand
has strengthened
considerably and order
books are up across
management consulting,
IT consulting and
outsourcing. Industry
figures suggest we are
now more than two years
into a sustained
recovery in revenues,
though it's only more
recently that pure
management consultancy | |
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| | considerable traction in
the market. What they
offer your career in
terms of share
ownership, lifestyle and
responsibility are quite
different from the major
consulting brands.
Moving from one firm to
another no longer means
"more of the same, just
under a different name";
there are tangible
differences and
therefore decisions for
you to make.
Recruitment &
retention are now
amongst the highest
strategic priorities for
consulting firms'
partners. Promotion
opportunities within
firms are opening up in
a way that hasn't been
seen for several years.
If you are an
experienced consultant
who is job-hunting this
next year, the
likelihood is that you
will receive multiple
job offers and be able
to take your pick of
employers.
Negatives for your
consulting career
Clients are
placing ever greater
importance on the sector
experience of the
consulting teams they
engage. This means | |
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| | consultants who develop
deep sector experience
will have greater
currency than those who
remain generalists.
Going down this route
clearly narrows the
career options available
to you post-consulting
career, so choose your
specialisations wisely.
Consulting
firms' margins have not
yet recovered to
anything like their 2000
levels, due to depressed
fee rates. Greater
involvement of
procurement departments
in the sourcing of
consultants is likely to
mean that fee rates
remain subdued over the
coming year, even if
some increases are
achieved. Consequently,
firms cannot financially
afford to be as lavish
with raises and bonuses
as they were five years
ago.
Pay rises - of
the substantial variety
- are no longer
occurring across the
board. Whilst most
consultants will have
seen modest pay rises
this last year, bigger
rises are being reserved
for those consultants
who have received an
offer to join a
competitor - with the | |
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| | more substantial pay
rise in the form of a
counter-offer being used
as a retention strategy
rather than something
that's offered to all
the high-flyers in a
firm.
As recruiters
struggle to hit
recruitment targets
there will be greater
upwards pressure on
utilisation rates and,
in all likelihood,
longer working hours and
a worsening work/life
balance for those whose
skills are in high
demand within their
firm.
So all in all this is
a period of transition
for the consulting
industry. There are a
variety of changes and
pressures building up
that you must be aware
of and react to if you
are to keep your
consulting career on
track and stay ahead of
the pack. But overall
2006 is looking like a
very rosy year for the
industry, both in the UK
and Stateside. For
further insights do see
the Consulting
Prospects survey which
you can find at:
http://www.top-consultan
t.com/UK/news/Article_Dis
play.asp?ID=2483.
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| | has also picked up.
Utilisation rates within
consultancies have shot
up, meaning you are more
likely to be staffed on
projects rather than
sitting on the bench and
that employers will be
willing to do more to
retain your services.
2005 has been
the year in which the
accounting firms have
started to make a
concerted effort to get
back into the consulting
game. As non-compete
clauses come to an end,
we can expect this trend
to intensify in 2006.
More large brands
competing for a limited
pool of talent can only
mean expanded career
opportunities and
upwards pressure on
salaries over the next
12 months.
Niche start-ups
founded during the
downturn are now
starting to enjoy | |
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