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Huntswood: The state of the market – Q1 2013
 
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   Procurement of
consultancy
services


   The procurement of
consulting services has
been an ongoing theme
throughout the quarter;
specialist research firm
Source for Consulting
has reported that over
two thirds (69%) of
procurement managers are
now strongly influencing
the purchasing decisions
of large consulting
projects. Reports have
also established that
procurement has also
begun to be more
involved throughout an
engagement in an attempt
to drive the return on
investment for the work.
The MCA has also moved
to launch its new
‘Consultancy Buyers
Forum’, a service that
will bring the country’s
leading consulting firms
together with major
client organisations
with an aim to achieve
even better rates of ROI
for clients than the
 
 already impressive
figures reported in its
research.
  
   The consultancyONE
government framework
ploughs on without an
end in sight; the costs
are becoming onerous for
smaller firms. We all
hope to see a resolution
as soon as possible as
to how the government
will procure consultancy
services, and from
whom.
  
   Growth areas
  
   Emerging
markets


   International growth
of consulting firms has
continued. Africa, the
Middle East and Latin
America offer the most
interesting
opportunities for
international expansion
for UK management
consultancy. For
instance, Africa’s
adoption of new
technology over more
traditional desktop and
wired internet gives
companies who can
 
  
   
 
 
 
 establish an FS
innovation centre in
Beijing, offering
business and technology
services to support
strategic growth and
transformation of large
banks in the region.
  
   Public
sector


   Two years down the
line and reality is
dawning in the public
sector and doors are
opening up for
consultants in the NHS,
local government and
emergency services. The
MCA’s Consulting in 2013
report states that “key
areas outside of central
government, such as
health and local
government, are in a
period of massive
process and operational
change, and could be
future growth sectors
for the consulting
industry”. Source for
Consulting has reported
that more than 80% of
public sector managers
want to buy more
consulting services in
order to access skills
 
 not available in-house.
Local governments are
also under pressure to
reform services to allow
more choice and become
more ‘customer centric’.
KPMG, which has
traditionally been
strong in this space,
has moved to install a
new head of public
sector across Europe,
Middle East and Africa.
Alan Downey, who will
assume the role,
commented that external
advisors have a huge
role to play in enabling
public sector
organisations to
significantly change the
way that they operate in
order to deliver better
public services with
less money and survive
and thrive in the
current economic
environment.
  
   In conclusion, firms
can look at the public
sector with openness
again; international
growth is a plan all
firms should be taking
and, for all of us, 2013
ought to be a year of
 
 develop mobile based
solutions a real
advantage in the market.
Furthermore, the MCA has
also reported that the
growth seen in the UK
management consultancy
industry in 2012 is
almost entirely down to
consulting exports, with
accredited firms
reporting that almost a
fifth (17%) of
consulting revenue now
comes from international
markets, compared with
just 5% last year.
  
   This quarter,
strategy giant Booz
Allen Hamilton has been
the most recent addition
to significant Middle
East operations, after
unveiling its new base
in the Etihad Tower, Abu
Dhabi. Meanwhile, Atos
has established a new
operation in Qatar and
BPO giant Capgemini has
opened new offices in
Sao Paulo, Brazil.
Accenture has moved to
 
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