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Official statistics reveal consulting revenues back on track
 
 Figures just released by
the Management
Consultancies
Association (MCA) will
put a spring in the step
of many a UK reader.
   Reporting on revenue
growth rates for member
firms, the MCA figures
show UK consulting
revenues for the latest
quarter are up 8.7%
compared to last year.
More encouraging still,
pure management
consultancy (rather than
outsourcing or IT
systems development) is
also up 7% on same
 
  
   
 
 
 
 
 
 
 
 hiccup at the beginning
of the year, with growth
stalling for a couple of
months. This is seen as
quite normal, however,
as clients rarely
commission strategic
assignments in the
run-up to Christmas and
so January is often a
quiet time for this
sector. Overall, though,
MCA member firms are
reporting there has been
a recent upturn in order
volumes - and
collectively they have a
generally upbeat view of
current business
 
 conditions. This view of
the market mirrors the
rising levels of
recruitment activity
within the sector, which
Top-Consultant.com has
commented on as a
pronounced trend since
the latter stages of
2004.
   Commenting on the
latest figures from the
Management Consultancies
Association, MCA
President David Bailey
said:
   "This is a positive
start to the year, with
consultancy fee income
 
 continuing to increase,
and confidence in
business improving
slightly this quarter.
Financial Services is
one of the hot sectors
at the moment for the
consultancy industry as
regulatory topics such
as Basel II provide work
for members. As business
confidence has returned,
the consulting industry
has seen clients focus
more on the value that
consultants can create
for their business
rather than the
associated costs."
 
 period, confirming the
consulting recovery has
now spread throughout
the industry to
encompass pure strategy
and traditional business
consulting.
   The figures do
however reveal that pure
strategy business
consulting experienced a
 
 
Global survey suggests improved hiring activity ahead for Q3
 
 The Manpower Employment
Outlook Survey, which
gathers data from more
than 45,000 employers
across the globe each
quarter, has found that
employers in 22 of 23
countries and
territories surveyed
expect positive hiring
activity during the
third quarter of 2005.
   Nearly one third of
the employers
surveyed—mainly
 
 European—are reporting
stronger hiring
intentions compared to
the second quarter.
   "Compared to last
year, hiring intentions
in Europe are mixed,"
said Manpower CEO Jeff
Joerres. "Hiring
prospects are again the
strongest in Ireland and
Norway. Notably,
Finance/Insurance/Real
Estate employers in
eight of 12 European
 
 countries are reporting
improved outlooks on
both a
quarter-over-quarter and
year-over-year basis."
   Elsewhere in Europe,
employers in the UK,
Sweden and Spain
indicated favourable
employment prospects.
Employers in
Switzerland, the
Netherlands, Italy,
France and Germany
report the weakest
 
 hiring expectations for
the upcoming quarter.
Albeit, employers in the
lagging German labour
market are optimistic
about hiring for the
first time since the
survey began in the
country in 2003.
   In the Americas, the
labour markets are
expected to remain
steady from the second
quarter's solid hiring
pace, based on
 
 seasonally adjusted
data. Hiring in Canada
and Mexico is expected
to improve slightly from
last year at this time,
while hiring in the US
should continue at the
same solid pace seen
over the last six
quarters.
  
 
 
Deloitte forecasts $18bn revenue and 10% growth
 
 Almost 250 Deloitte
member firm leaders from
around the world met in
New York in June to plan
the future of the
organisation, as it
announced estimated
aggregate member firms
revenues of US$18
billion.
   Preliminary figures
suggest FY05 aggregate
member firm revenue
growth of more than 10%,
consistent with an
 
 increase in demand for
services according to
the firm. Audit and
enterprise risk services
showed the strongest
growth at almost 15%;
followed by financial
advisory services and
consulting growing at 9%
each; and an increasing
market share for tax
services despite tough
market conditions.
   William G. Parrett,
CEO Deloitte, said, "The
 
 growth has been the
direct result of the
increased demand for
services: Simply, it is
a case of increased
service hours across
member firm markets.
   "This is the member
firms' 12th year of
aggregate revenue
growth," he continued.
"It is the result of the
key strategic decisions
that have been made over
the years -- decisions
 
 to merge, not to merge,
or to continue
delivering consultative
services."
   Aggregate firm
consulting revenues in
FY05 show 9% growth.
   "This is an
indication that the
consulting and advisory
services are clearly
part of the broader
solution that businesses
are looking for, and
that this was the right
 
 strategic decision for
Deloitte member firms,"
said Parrett.
   Deloitte said a new
vision and strategy for
the firm is being
developed and will be
announced in the coming
months.
  
 
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