Demand for the Financial Sector Consulting on the Rise
The demand for consultancy services in the financial service sector has risen by 15% in the last 6 months; whereas the demand for consulting in the public sector has fallen by 25%.
The finding has been published by a research website called Sourceforconsulting.com.
The latest publication of Source Index of Consultancy Demand showed a fall by a further 4 points to 70, which is just four points above from where it was during the depths of the recession. Here the buyer’s expectation on how much expenditure for the next 6 months he is going to incur is calculated.
Fiona Czerniawska, who is the Director of Sourceforconsulting.com, said that many consultancy firms may not really feel the pinch, but very few firms will actually be able to avoid the feelings at all.
Czerniawska also said that consultancy firms who do not work for the public sector may find themselves fighting market share, especially in sectors such as surplus capacity as they will be facing increased competition at work.
Czerniawska further added: “When analyzing what clients are saying, we would estimate growth of about 50% in this sector is required to offset the future decline in public sector work.”
The report also reveals that strategy firms have been losing ground in the recent times. These firms were seen to be as eating into the market share of the Big 4 firms in the second quarter of 2010. In fact the report said that their share in the market has fallen by 35%.
The Big 4 firms have been found to have about 37% of the market.
Since the second quarter of this year, the strategy consulting sector in finance has achieved a doubling of its market share, especially in M&A deal structuring and transaction and valuation doing particularly well.