The Management Consultancies Association has conducted its annual report, a study which is considered to be one of the most authoritative studies on the state of the UK’s consulting industry. The survey has revealed that members of the MCA have increased their total value by 8.4 per cent to a total of £5.2 billion during 2014. With the MCA’s membership comprising around 60 per cent of the UK’s consultants, the results have revealed that the consulting sector grew faster than any other area of the economy.
Much of this growth has come from consultants who are helping businesses to realise their potential for growth and diversification. Strategy consulting was another area in which significant growth was identified, with a 44 per cent growth which took the sector’s value to around £537 million and accounts for a tenth of all consulting activity. This has been attributed to the ability of clients to distinguish between the high value consulting which adds value and expertise to their strategic problems and the lower-cost short-term staff who may not have the level of experience that is required to resolve issues.
MCA member firms have seen an increase in the number of consultants employed to the tune of 12 per cent, bringing the numbers up to around 38,000. The number of consultants working in the digital and technology sector has risen by 26 per cent and now totals just under 10,000. An increase in client demands and a rise in the numbers of consultants in the workforce, consultants’ fees rose again in 2014.
Digital consulting is one of the biggest sectors for consultants, with a rise of over 27 per cent bringing the total value of the market to £1.4 billion. The biggest increases have been seen in financial services, retail and energy industries, although manufacturing has also seen some significant increases. There seems to be no decrease in demand, and many respondents to the survey believe that there is still plenty more to be done in the corporate sector.
The public sector has seen some growth in comparison to the figures for 2013, so although the level of income remains roughly the same at £1.1 billion, the firms who supplied returns showed a 9.8 per cent growth. There have been suggestions that long-term attempts to spend money more wisely on consultants are coming into play, and that public sector procurement is reflecting the need to manage the same level of service with smaller budgets.
If you are considering a career as a consultant, then keeping up to date with the latest hiring trends will be one of the things on your to-do list, alongside maintaining a network of professional contacts and keeping your skills up to date. Anyone who wants to save themselves time should consider using a specialist contractor accountant who will be able to save you time and money and reduce your stress levels considerably. For more information on the services we offer, call our friendly team today on 01253 362062 or email us at firstname.lastname@example.org.