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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
 
  
   
 
 
 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
 
 companies who can 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