Feaco Survey 2010-2011

Survey of the European Management Consultancy

2010/2011

December 2011

This report was prepared for FEACO by:

Dr. József PoórDr. Andrew C. Gross

Ágnes MiloveczÁgnes Király

© Research Center on Management and Human Resource Management, University of Pécs, Pecs, Hungary

Table of Contents

Introduction by the FEACO CHAIRMAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 ExecutiveSummary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 KeyFigures,2008–2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

1 Scope of the Market and Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

2 Europe – Market Size, Forecast & Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 2 .1HistoryandProjections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 2 .1 .1 SizeoftheEuropeanMC-Market,1998-2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 2 .1 .2 Evolutionin%oftheMCMarketTurnover,1998-2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 2 .1 .3 MCMarketas%ofGDP,1998-2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 2 .1 .4 AverageGrowthRatebySizeofConsultancyCompany,2005-2010 . . . . . . . . . . . . . . . . . 9 2 .1 .5 SizeoftheEuropeanMCMarket(TotalTurnover)byCountry-Region,2010 . . . . . . . . . 10 2 .1 .6 BreakdownoftheEuropeanConsultingMarket(Business&ITConsulting)

byMainCountries,2009-2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 2 .2AnalysisbyServiceLine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 2 .2 .1 CompositionofMCMarketbyServiceline,2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 2 .2 .2 BreakdownofBusinessConsultingTurnover,2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 2 .2 .3 BreakdownofConsultingTurnover,2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 2 .2 .4 BreakdownofTurnoverfromotherServices,2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 2 .3AnalysisbyClientSector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 2 .3 .1 CompositionoftheMCMarketbyClientSector,2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

3 Selected European MC Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 3 .1AnalysisbyCountry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 3 .1 .1 GrowthRates–BreakdownbyCountryRegion,2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 3 .1 .2 ManagementConsultingasaPercentageofGDP,2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 3 .1 .3 MCTurnoverandGDPinSelectedEuropeanMarkets,2010 . . . . . . . . . . . . . . . . . . . . . . . . 16 3 .1 .4 BreakdownbetweenManagementConsultantsandSupportStaff,2010 . . . . . . . . . . . 17 3 .1 .5 KeyFiguresofSelectedEuropeanMCMarkets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 3 .2AnalysisbyDailyRates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 3 .2 .1 AverageDailyFeeRatesofSelectedEuropeanMCMarkets,2010 . . . . . . . . . . . . . . . . . . 18 3 .2 .2 ExportofMCServicesbySelectedCountries,2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 3 .3AnalysisbyServiceLines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 3 .3 .1 MCMarketCompositionbyServiceLine(%ofTurnover),2010 . . . . . . . . . . . . . . . . . . . . . 19 3 .3 .2 MCMarketCompositionbyServiceLine(million€),2010 . . . . . . . . . . . . . . . . . . . . . . . . . . 20 3 .3 .3 BreakdownofMCinSelectedKeyCountries(million€),2010 . . . . . . . . . . . . . . . . . . . . . . 20 3 .3 .4 BreakdownofBusinessConsultinginSelectedKeyCountries(million€),2010 . . . . . . 21 3 .4AnalysisbyClientSector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 3 .4 .1 MCMarketCompositionbyClientSector(%ofTurnover),2010 . . . . . . . . . . . . . . . . . . . . 21 3 .4 .2 MCMarketCompositionbyClientSector(million€),2010 . . . . . . . . . . . . . . . . . . . . . . . . . 22 3 .4 .3 KeyMarketCompositionbyClientSector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

4 Main Trends in Management Consulting in 2010/2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 4 .1Austria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 4 .2Denmark . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 4 .3Finland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 4 .4France . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 4 .5Germany . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 4 .6Greece . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 4 .7Hungary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 4 .8Ireland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 4 .9Italy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 4 .10Portugal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 4 .11Romania . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 4 .12Slovenia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 4 .13Spain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 4 .14Switzerland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 4 .15UnitedKingdom . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

5 About FEACO, The European Federation of Management Consultancies Associations . . . . . . . 33

6 Member Associations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

7 Appendix – Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

5

Introduction by the feaCo ChaIrman

As the new chairman, it is my pleasure to introduce the 2010/2011 edition of the Feaco Survey of the European Management Consultancy Market.

The current scenario is characterized by fluidity, contamination and discontinuity. The world and identity of consultancy is undergoing dynamic change, from the demand, players, services to the sector’s structural elements. The current process of transformation is constant and fluid, lacking any defined elements of stability; it leaves very little untouched and requires that we be ready to adapt accordingly.

Together, we have faced a severe economic recession in recent years. However, the sector of management consulting already shows a tendency towards recovery that is greater than forecasted. With the setbacks of 2009 limited to that year, in 2010 management consulting enjoyed increasing employment and revenues growing by 2.9%.

In this fluid and discontinuous context, consultancy represents a growth factor and GDP multiplier, and must be perceived as such by the market. The answer to discontinuous change cannot be stagnancy, but rather conscious adaptation or bravely anticipatory action. It is by inciting such transformations that consultancy performs its role of catalyzing growth and development. Consultancy is innovative in its very nature, it is

hybridization between the known and the new (in its form and/or content); it is therefore the best tool for helping businesses grow, a tool that must be employed at both national and European levels to promote growth.

Today we are asked to think “big”, to broaden our vision. This does not mean compromising specific identities; rather, it has the potential to enrich them. Strengthening the various national associations involves equipping them with tools that accelerate their internationalization. Liberalizing and opening the market will prompt a competition on the basis of added value, thus raising the qualitative level of the services on offer. In its leading role of developing, representing and supporting management consulting for organized businesses, FEACO will continue to use networking and research activities to promote the kind of competency hybridization that leads to mutual benefit.

Ezio LattanzioFeaco Chairman

6

executive Summary Key figures, 2008–2011

The results of the 2010-2011 FEACO survey, con-ducted in cooperation with the national European management consulting associations, clearly show that in regard to the size of the consulting market last year’s forecast was moderate. The actual results in regard to revenues in 2010 proved to be 1.6 bil-lion Euros higher than expected in 2009. As mar-kets previously anticipated, the setback experi-enced in 2009 was limited to that year, so the estimated growth rate for 2010 (1.6%) turned out to be an underestimation. Taking year 2009’s data into consideration revenues increased by 2.9%. Compared to the past years the tendency of recov-

ery can be seen; the size of the consulting market in 2010 almost reached the level of 2008 concern-ing revenues, and the number of total staff in 2010 highly exceeded its counterpart in the previous years. The distribution of revenues between the different key service lines of management consult-ing is presented in Table 1. The already remarkable representation of Business Consulting among the consulting services has further strengthened. IT Consulting and Development & Integration have shown better growth rates than before, while pro-portion of Outsourcing and Other Services have declined.

The aggregate data from the European consult-ing industry in 2008-2010 by country and by re-gion is presented in Table 2. According to this, significant alteration cannot be seen compared to the previous years. Germany remains the larg-est consulting market in Europe, followed by the

United Kingdom, Spain and France. Regarding the level of regions, Western Europe is in first place, followed by the Nordic Region, while Cen-tral & Eastern Europe’s total turnover has not de-creased remarkably.

2008 2009 2010 2011 est.

Market size €86.7 bn €83.7 bn €86.2 bn €89 bn

Growth rate 8.2% -5% 2.9% 4%

Total staff (thousand) 557 574 659 n.a.Breakdown of Key Services

Business Consulting 42% 43% 50% n.a.

IT Consulting 14% 14% 15% n.a.

Dvt & Integration 21% 18% 19% n.a.

Outsourcing 17% 19% 12% n.a.

Other services 6% 6% 4% n.a.

2008 2009 2010

Total turnover in billion €

Business & IT Consulting in

billion €



billion €



billion €

Germany 26.5 18.2 25.8 17.7 27.9 19.4

United Kingdom 20.2 10.3 18.8 9.5 19 8.1

Spain 9.5 1.8 9.6 1.8 9.9 1.7

France 8.3 5.3 7.7 6 8.8 2.6

Western Europe 12.2 8.8 12.5 7 11.6 7.5

Nordic Region 7.9 5.7 7.2 4.3 6.8 4.4

Central & Eastern Europe

2.4 1.7 2.1 1.6 2 1.3

WesternEurope: Austria,Belgium,Ireland,Italy,Netherlands,Portugal,SwitzerlandCentral&EasternEurope: BosniaandHerzegovina,Bulgaria,Croatia,Cyprus,CzechRepublic,Greece,Hungary,Poland,Romania,SloveniaNordicRegion: Denmark,Finland,Norway,Sweden

Table 1. Key Figures 2008-2011

Table 2. Key Figures in Selected Countries and Regions

Executive Summary Key Figures, 2008–2011

7

1 Scope of the market and methodology

The main goal of FEACO is to present objectively and as accurately as possible a picture of the activity in the Management Consulting (MC) sector of Europe, aiming for the maximum level of reliability in the aggregation of the figures which represent the different elements of the services which companies in the MC sector offer.

Findings shown here reflect the aggregate data and the level of detail as a result of the effort of all the companies, large and small, who participated and continue to contribute to build a prosperous, competitive and exciting European MC Market. The FEACO member associations and the companies provide a broad spectrum of MC services. Depending on each national market, the range and type of services offered may be at different levels of maturity. The array of services the management consultancies offer is dynamic and continuously evolving. Defining the framework of activity of our sector is therefore not an easy task, mainly because it concerns a basket of services that are quite different in the various countries.

From that perspective and with the objective of improving our report, FEACO proposed in 2005 a new definition of the scope of services offered by management consultancies in Europe and a new way of segmenting these services. This exercise resulted in the following division of the main services:

Consulting, which we divide into Business Consulting and IT Consulting,

Development and Systems Integration (excluding software development),

Outsourcing of value added services, Other services.

These segments are described in detail in the subsection “Analysis by Service Line”. The new framework implied a change in methodology for the collection and aggregation of the quantitative and qualitative data, which are provided by the companies. The methodology consists basically in the collection of the data by our member associations on the MC sector via the aggregation of the figures from the individual consulting companies. In 2007, FEACO decided

to distinguish between associations with an in-depth knowledge of their domestic market and associations from countries whose markets are less well-known or well-measured. As a result, quantitative data were collected on two levels:

Key countries were asked to provide: Volume of turnover for the year 2010 Data on staffing Business volume per service area Business volume per major client sector Daily fee rates for 2010 General forecasts for 2011

Non key countries were asked to provide: Volume of turnover for the year 2010 Data on staffing General forecasts for 2011

In parallel, qualitative data were solicited in a separate questionnaire on companies’ views on the development and the future of the MC sector in selected areas of activity. The results of it are summarised in the section of the report on trends in the MC sector. The MC sector is dynamic as every year new consulting companies appear, while others merge (which give rise to spin-offs) or reorganize themselves. Because the data are provided on a voluntary basis, the sample of companies surveyed in each European country varies from year to year. The latest edition of the survey allows us to redefine retroactively some of the data obtained in previous years.

This year 15 countries contributed with their effort to the final FEACO report 2010/2011. Out of the 15 Full Members 11 members (Austria, Finland, France, Greece, Hungary, Italy, Portugal, Romania, Slovenia, Spain, Switzerland) delivered answers and Denmark, Germany, Ireland and the United Kingdom also participated in the survey. The FEACO Report 2010/2011 is considered to be representative, because the countries delivering data cover over 80% of the total European Management Consulting Market. Data were evaluated on a statistical basis, using data and variance analysis to prove the reliability of the results. The estimated data were calculated on the basis of the median results of the various indicators.

1 Scope of the Market and Methodology

8

2 europe – market Size, forecast & analysis

After several years of incremental growth, the industry experienced a slight decline in 2009, but it seemed to be only a temporary downfall as in 2010 the volume of the MC Market has almost

reached its level that was experienced back in 2008. According to estimates, the MC sector is on target to beat the record with an optimistic forecast of 89 billion Euros in 2011.

In Figure 2 a similar optimistic tendency can be discerned about the evolution of the MC market turnover in percentage. Until 2004, changes in the MC market turnover can be described as showing a slow but stable growth. In 2005 revenue significantly increased starting a robust growth trend. This lasted until 2008, when the

increase reached 519% compared to the data of the 1996 base year. A moderate setback could be experienced in 2009, but a new development phase has begun in 2010 as the MC market produced 516% compared to the base year. The anticipations for 2011 mirror the positive expectations of the participants as they expect a new peak.

2 Europe – Market Size, Forecast & Analysis

Figure 2. Evolution in % of the MC Market

Turnover, 1998-2011

Figure 1.Size of the European MC Market,

1998-2011

24.5

36

42.5

47.5 46.5 47.5 48.5

64.5

74

8186.7

83.7

-10

0

10

20

30

40

50

60

70

80

90

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Volu

me

of th

e M

C M

arke

t (bi

llion

€)

86.2

2011(est.)

89

Growth rate (%)

15 15.918

11.5

– 2

3.5 3.7

1410.7 9.5

8.2

–5

2.9 4

0

100

200

300

400

500

600

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

MC

Mar

ket (

1996

= b

ase

100)

Year

217256

286 280 286 292

389446

489519 502 516

149

2011(est.)

532

2.1 HistoryandProjections

2.1.1 SizeoftheEuropeanmcmarket,1998-2011

2.1.2 Evolutionin%ofthemcmarketTurnover,1998-2011

9

As can be seen in Figure 3, changes in the MC market as % of European GDP (Source: Eurostat) show a 0.01% decrease from 2009 to 2010, which means that there was no actual change.

From 2003 to 2004 a similar, barely observable change took place and then it was followed by an outstanding increase; for 2011 the expectations show the return of the level of 2009 of the results.

The slight decline concerning the growth rate of the industry in 2009 affected primarily the large and medium sized MC-firms that year, however, in 2010 the changes in average

growth rate of firms in both categories tend toward stability. In 2010 the growth rate of the small sized MC-firms was actually positive again.


Figure 3. MC Market as % of GDP, 1998-2011

Figure 4. Average Growth Rate by Size of Consultancy Company, 2005-2010

0.24

0.36

0.53

0.58 0.55 0.56 0.550.61

0.63 0.64 0.650.68 0.67 0.68

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.8

0.7

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011(est.)

% G

DP

Year

0%

-5%

-10%

5%

10%

15%

20%

25%

2005 2006 2007 2008

Year

Large sized MC-rms (TOP 20 MC-rms)

Medium sized MC-rms (≥ €500.000 turnover)

Small sized MC-rms (< €500.000 turnover)

17%

9%

5% 6%

10%

15%

20%

11%

8%

4%

10%

4%

-6% -6% -2%

2009

-2% -3% 1%

2010

2.1.3 mcmarketas%ofGDP,1998-2011

2.1.4 AverageGrowthRatebySizeofconsultancycompany,2005-2010

10

In 2010, the same countries and regions can be found among the 13 examined European MC markets as in 2009. The position of each country and region remained quite stable. Based on to-tal turnover in each of the markets, Germany is still the largest European MC Market with 32.4% of the total, followed by the United Kingdom at

22.1%. Spain and France are ranked third and fourth, with their respective 11.5% and 10.2%. Germany and France increased their portion of the market compared to last year by 1% and 1.6%, respectively, while Italy, Portugal and Swit-zerland each grew by less than 0.5%.

In 2010 FEACO developed a new instrument for comparative analysis – the size of the European Business Consulting market. Since in most of the countries Business Consulting is the leading serv-ice line within Management Consulting, it can be a useful tool for comparison-making. The ranking

of countries and regions is the following from this aspect: Germany, United Kingdom, Nordic Region, France, Netherlands, Italy, Central and Eastern Europe, Belgium, Austria, Switzerland, Spain, Portugal and Greece.


Figure 5a. Size of the European MC Market

(Total Turnover) by Country-Region, 2010

Figure 5b. Size of the European BC Market

(Total Turnover) by Country-Region, 2010

%

32.36% Germany

22.05%United KingdomSpain

11.49%

France 10.22%

Netherlands 3.62%

Central & Eastern Europe 2.14%

Nordic Region 8.47%

Switzerland 1.22%

Belgium 1.39%

Italy 3.53%

Austria 1.83%

Greece 0.24%

Portugal 1.43%

%

28.03% Germany

26.20%United KingdomNordic Region

11.97%

France 10.18%

Italy 5.66%

Belgium 2.23%

Netherlands 5.80%

Portugal 0.98%

Spain 1.11%

Central & Eastern Europe 3.52%

Austria 2.06%

Greece 0.28%

Switzerland 1.96%

2.1.5 SizeofEuropeanmcmarket(TotalTurnover)bycountry-Region,2010

11

For the four main countries covering more than 75% of the total MC market, we present the distribution of the European Consulting Market (Business & IT Consulting) in Figure 6. There are

no significant changes that can be seen, though the United Kingdom and France lost respectively 4% and 1% to the benefit of Germany. The rate for Spain remained unchanged.

2.2 AnalysisbyServiceLine

According to the new segmentation introduced by FEACO in 2005, the MC market is divided into four segments: Consulting, Development and In-tegration, Outsourcing and Other services. The Consulting segment is subsequently divided into two sub-segments: Business Consulting (BC) and Information Technology Consulting (ITC).

1. Consulting. These services help private and public organisations to analyse and redefine their strategies, to improve the efficiency of their busi-ness operations and to optimize their technical and human resources.

1a. Business Consulting (BC), which includes: Strategy Consulting (SC), which targets the im-

provement of the long-term, strategic health of a company: strategic planning development; mergers & acquisitions; sales; marketing; cor-porate communication; financial advisory; HR strategy;

Organisation/Operation Management (OM) aims at the integration of business solutions through Business Process Re-engineering (BPR); customer/supplier relations management (CRM); turnaround/cost reduction and purchasing & sup-ply management as well as advise on outsourcing;

Project Management (PM); The application of knowledge, skills, tools and techniques to a broad range of activities in order to meet the requirements of a particular project;

Change Management (CM), this consists of services which, on top of any other type of con-sulting service, help an organisation deal with the effects that change has on the human ele-ment of the organisation;

Human Resources Consulting (HR): Consulting services which target the improvement of the ‘people’ element of an organisation through performance measurement and management, reorganisation of benefits, compensations and retirement schemes, HR strategy and market-ing, the development of talent strategies and executive coaching.

1b. Information Technology Consulting (ITC) helps organisations to evaluate their IT strategies with the objective of aligning technology with the business process. These services include strategic planning and conceptions, operations and imple-mentations.


Figure 6.Breakdown of the European Consulting Market (Business & IT Consulting) by Main Countries, 2009-2010

23%

16%

5%

56%

Germany United Kingdom France Spain

Year 2010

27%

17%

5%

50%

2009

2.1.6 BreakdownoftheEuropeanconsultingmarket(Business&ITconsulting)bymaincountries,2009-2010

12

Business Consulting is the most robust service line having increased by 7% points between 2009 and 2010 and it now accounts for 50% of the MC Market. Another interesting realignment took place in 2010:

Development & Integration (19%) has overtaken IT Consulting (15%) and Outsourcing (12%). Other Services, already small, lost 2% point and now its share stands at 4%.


50%

Business Consulting

15%IT Consulting

Development & Integration

19%

Outsourcing 12%

Other Services

4%

%

Figure 7.Breakdown of Turnover

by Service Line, 2010

2.2.1 compositionofmcmarketbyServiceLine,2010

2. Development and Integration that concerns:

the development of applications (excluding software);

the creation of new functionalities through, of-ten tailored, process developments.

Usually these developments integrate or unite internal or external business processes and can involve a conversion of applications so that they can be used for different platforms or conceptions,

the design of services which integrate applica-tions which were created in different existing IT applications or infrastructures (systems inte-gration -development);

the deployment and integration of applica-tions;

the implementation of new applications or in-frastructures, which refers to the instal-lation of hardware and/or software, their configura-tion or adaptation and the testing of their in-teroperability; and of services which integrate applications which were created in different existing IT applications or infrastructures and the management thereof (systems integra-tion).

3. Outsourcing, which consists of three types of activities:

IT management services; among these are serv-ices for the operation of infrastructures (opera-tion of systems, administration and security, follow up of cost-effectiveness, configuration management, management of technology, etc.) applications management, and help desk management;

Applied Management Services (AMS); this con-cerns the outsourcing of the development and implementation of support services for hard-ware, applications, CRM and infrastructures (tools for the development of applications and middleware, as well as software for informa-tion management, storage or systems and net-works);

Business Process Outsourcing (BPO); this serv-ice supposes the externalisation of a complete business process.

4. Other Services, which consist of a variety of offerings provided by many MC companies that are generally complementary to Consulting, De-velopment and Integration, and Outsourcing. Cat-egories here include: Training, Engineering Con-sulting, Outplacement, Executive Selection and Recruitment and Audit and Accounting.

13

Only one line of Business Consulting declined from 2009 to 2010 and that was Project Management (from 18% in 2009 to 9% in 2010). All other service lines either preserved their shares of BC turnover such as Organizations/Operations Management

(OM) with its 37% and HR Consulting with its 11%, or increased their shares of BC turnover as was the case for Strategy (from 24% to 29%) and for Change Management (from 11% to 14%).

Figure 9 shows that in the breakdown of con-sulting turnover there was a slight change in 2010 compared to 2009. Business Consulting now covers 77% of consulting turnover and IT

Consulting now stands at 23% share. Nevertheless, a slow but continuous tendency can be seen from 2007 onward, with the role of Business Consulting strengthening at the expense of IT Consulting.


IT Consulting

% 77% Business Consulting

23%

Figure 8.Breakdown of Business Consulting Turnover, 2007-2010

2009

37%

18%

11%

11%

24%

Strategy Organisation/Operations Management Project Management Change Management HR Consulting

Year

2010 2007 2008

37%

9%

14%

11%

29%

43%

12%

4%

11%

30%

33%

21%

10%

9%

27%

Figure 9. Breakdown of Consulting Turnover, 2010

2.2.3BreakdownofconsultingTurnover,2010

2.2.2 BreakdownofBusinessconsultingTurnover,2007-2010

14

Industry

Public sector

Transport & Travel

3.6%

5.2%

3.3%

8.2%

Banking & Insurance

Aerospace & Defense 2.0%

Telecoms & Media

%

18.7%

19.8%

25.6%

Other

Healthcare (pharmaceuticals & biotech included)

Wholesale & Retail

9.5%Energy & Utilities

4.6%


Figure 11.Composition of the MC Market

by Client Sector, 2010

In 2009 the demand for the top three Client Sectors was almost equally distributed, but by 2010 Banking & Insurance can be clearly differentiated with its 25.6%. Industry and Public Sector – while closely following each other –

exchanged their ranking, with respective 19.8% and 18.7%. Although all of the other sectors remained below 10%, the growing role of Energy & Utilities is notable; it had 7% in 2007 and, steadily increasing, it has reached 9.5% in 2010.

2.3 AnalysisbyclientSector2.3.1 compositionofthemcmarketbyclientSector,2010

In 2010 Executive Selection/Recruitment/Out-placement gained 2% compared to last year’s data, however, it still did not reach the level of 2008 (59%) or 2007 (68%) level. Audit retained its share with its 19%, while Training and Other Serv-

ices recorded respectively a 2% and 1% growth compared to 2009. Engineering now stands on the same level as it did in 2009, while Market Surveys lost 5% of its share by 2010.

51%

Audit19%

Engineering 2%

% Executive Selection/Recruitment/Outplacement

Other18%

Market Surveys 1%

Training 9%

2.2.4 BreakdownofTurnoverfromOtherServices,2010

Figure 10. Breakdown of Turnover from

Other Services, 2010

15

3 Selected European MC Markets 3 Selected european mC markets

Regarding the size of European MC Markets, the av-erage growth rate is 2.9% in 2010 Figure 12 presents the change in the size of MC Markets in 13 European countries one by one. The negative extreme of 2010 shows much more moderate numbers than last year’s extreme – in 2009 a -32.6% decline was expe-rienced in Bosnia & Herzegovina, while in 2010 the highest decline occurred in Hungary at -12%. From the 13 European countries 6 experienced setbacks

while 7 countries reported increases. These 7 coun-tries are the United Kingdom (1%), Slovenia (1.1%), Spain (3.5%), Portugal (4.8%), France (5%), Germany (5.3%) and Switzerland (5.6%). Countries that expe-rienced modest declines are Italy (-0.8%) and Den-mark (-1.5%); countries with moderate declines are Romania (-7%) and Ireland (-7%); and countries with significant declines are Greece (-11.2%) and, as al-ready noted, Hungary (-12%).

Compared to last year’s expectations, several countries estimated their situations in 2010 in a realistic way; however, several were too optimistic and three countries underestimated their growth rates. Germany provided a nearly correct estimate; countries that underestimated the recession were Greece, Hungary, Ireland and Romania. Meanwhile, France, Switzerland and the UK underestimated their own performances.For 2011, several countries delivered their esti-

mations, which can be seen on Figure 13. According to this, it can be stated that four countries out of six expect different levels of growth (Italy, France, Switzerland and Romania), one country (Ireland) expects no change for 2011 regarding its growth rate, and from the countries that provided estimations for 2011 only one (Greece) forecasted a 3% decline. So the overall picture of expectations from the participating countries can be stated as optimistic in regard to the year 2011.

8%

-7% -7%

-1.5%-0.8%

1% 1.1%

3.5%4.8% 5% 5.3% 5.6%

-12%-11.2%

-14%

-12%

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

Hun

gary

Gree

ce

Irela

nd

Rom

ania

Den

mar

k

Italy

Unite

d Ki

ngdo

m

Slov

enia

Spai

n

Port

ugal

Fran

ce

Germ

any

Switz

erla

nd

-4%

-2%

0%

2%

4%

6%

8%

10%

-3%

0%

2%

6% 6%

9.4%

Gree

ce

Irela

nd

Rom

ania

Switz

erla

nd

Fran

ce

Italy

Figure 12. Growth Rates – Breakdown by Country, 2010

Figure 13. Growth Rates Estimations – Breakdown by Country, 2011

3.1 Analysisbycountry

3.1.1 GrowthRates–BreakdownbycountryRegion,2010

16

The contribution of the MC sector relative to the listed countries’ GDP can be seen in Figure 14. In 2010 two countries recorded the ratio of MC to GDP reaching in excess of 1%, namely the United Kingdom and Germany. Two other countries are nearing the 0.8% to 1% range; these are

Spain and Sweden. Seven countries belong to the third percentage range between 0.4% and 0.8%. Finally, there are eleven countries in the fourth cluster – between 0.2% and 0.4% – and only two countries are in the last category at below 0.2%.

Table 3 reveals the main economic characteristics of the selected European MC markets, listing the GDP data and growth and some ratios of MC market relative to the GDP. There is no significant relation found between GDP growth and MC growth, with

wide variations in this ratio from country to country. Such differences can be attributed to divergent economic and non-economic, including prevalence and popularity of MC in the client base.

Figure 14.Management Consulting as a

Percentage of GDP, 2010

Table 3. MC Turnover and GDP in

Selected European Markets, 2010

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

Perc

enta

ge

Country

0.09% 0.09%

0.2% 0.22% 0.22% 0.25% 0.25% 0.26% 0.27% 0.29%0.28% 0.31% 0.34%

0.46%0.53% 0.55%

0.63%

0.72% 0.73%0.77%

0.93%

1.1%

0.95%

1.13%

PL GR IT HU NO BG HR CH RO IE CY CZ BE FR NL AT FI PT DK SI ES SE UK DE

Country GDP (million €)2010

Share of total economy of countries considered

GDP growth 2010

MC growth 2010

Total turnover of MC firms 2010

Total turnover of MC firms as %

of GDP

Germany 2 476 800 19.3% 3.7% 5.3% 27900 1.13%

France 1 932 802 15.1% 1.5% 5% 8814 0.46%

United Kingdom 1 700 145 13.2% 1.8% -1% 19009 1.12%

Italy 1 548 816 12.1% 1.3% -0.8% 3044 0.20%

Spain 1 062 591 8.3% -0.1% 3.5% 9903 0.93%

Netherlands 588 414 4.6% 1.7% n.a. 3120 0.53%

Switzerland 398 878 3.1% 2.7% 5.6% 1056 0.26%

Belgium 354 378 2.8% 2.3% n.a. 1200 0.34%

Poland 354 310 2.8% 3.9% n.a. 310 0.09%

Sweden 346 855 2.7% 5.6% n.a. 3300 0.95%

Norway 311 855 2.4% 0.3% n.a. 700 0.22%

Austria 286 197 2.2% 2.3% 9.8% 1581 0.55%

Denmark 234 005 1.8% 1.7% -1.5% 1717 0.73%

Greece 227 318 1.8% -3.5% -11.2% 208 0.09%

Finland 180 253 1.4% 3.6% 3.5% 1142 0.63%

Portugal 172 799 1.3% 1.4% 4.8% 1236 0.72%

Ireland 155 992 1.2% -0.4% -7% 438 0.28%

Czech Republic 149 313 1.2% 2.7% n.a. 465 0.31%

Romania 121 941 1% -1.9% -7% 325 0.27%

Hungary 97 095 0.8% 1.3% -12% 215 0.22%

Croatia 45 899 0.4% -1.2% n.a. 115 0.25%

Bulgaria 36 034 0.3% 0.2% n.a. 90 0.25%

Slovenia 35 416 0.3% 1.4% 1.1% 271.1 0.77%

Cyprus 17 334 0.1% 1.1% n.a. 50 0.29%

Total of selected countries 12 835 438 86 209

* Figures edited in italic represent estimated data. Source of estimations: applying the trend gained from previous years ’ Feaco Reports’ data.

3 Selected European MC Markets

3.1.2 managementconsultingasaPercentageofGDP,2010

3.1.3 mcTurnoverandGDPinSelectedEuropeanmarkets,2010

17

Overall for the total market, the ratio of Consultants to Support Staff was 77% to 23% in 2010. This result differs from that of the previous year when the ratio stood at 82% to 18%. For a one-year interval, this is a significant change. At the two extremes, are the United Kingdom with 97% Consultants to 3% Sup-port Staff, while at the other end Austria shows only

37% of the people working in MC as Consultants and 63% belonging to Support Staff.

Tradition, current preferences, compensation pat-terns, diverse client base and other factors explain some of these sharp differences among the various nations.

The country rankings have remained practically the same since 2005, when Germany achieved the first position overtaking the United Kingdom.

In 2009 the median turnover per employee for the listed countries equals €106 902 in comparison to 2009, which stood at €128 850. The mean was €128 033 in 2010 (2009: €123 255).

The countries are grouped in the following turno-ver per employee categories (the same clusters could be used as in 2009):

A turnover per employee rate equal to or less than €60 000 can be found in 5 countries (Austria, Roma-

nia, Hungary, the Czech Republic, Poland) which together account for 3.4% of the European MC market in 2010.

In 2010 a turnover per employee between €60 000 and €150 000 was realized in 11 countries: Bulgar-ia, Cyprus, Portugal, Spain, Slovenia, Italy, Finland, Greece, Croatia, Ireland and Belgium.

In 2010 the turnover per employee rate exceeded €150 000 in 8 countries – Netherlands, Germany, Denmark, France, Norway, Sweden, Switzerland and the United Kingdom.

Germany Austria UK Italy Finland Portugal

Consultants 73% 37% 97% 81% 58% 60%Support Staff 27% 63% 3% 19% 42% 40%Total staff 185 000 102 584 36 789 33 844 11 860 15 423

Romania Hungary Switzerland Ireland Slovenia Greece

Consultants 80% 92% 85% 89% 88% 88%Support Staff 20% 8% 15% 11% 12% 12%Total staff 10 000 4 800 4 120 3 427 3 099 1 770

Table 4.Breakdown between Management Consultants and Support Staff, 2010


3.1.4 BreakdownbetweenmanagementconsultantsandSupportStaff,2010

3.1.5 KeyFiguresofSelectedEuropeanmcmarkets

18

Daily fee rates are the most difficult to obtain in any given year. In 2008 only four countries (Greece, Finland, France and Germany) could provide these data, in 2009 this number increased to six (Croatia, France, Germany, Greece, Hungary and Switzer-land; in 2010 also six countries were willing to pro-vide these data, however, not the same ones as in the previous year. In 2010 Finland, Greece, Hunga-

Daily rates of Management Consulting

Hungary €400

Greece €440

Romania €500

Italy €745

Finland €960

Switzerland €1 250

ry, Italy, Romania and Switzerland have given data on daily rates of Management Consulting. These six countries can be further classified into two groups: Hungary, Greece and Romania belong to one group with lower level of daily fee rates (€400, €440 and €500) while the second group in-cludes Italy, Finland and Switzerland (€745, €960 and €1250) respectively. The first group is a cluster in the Central and Eastern European region, while the second group is situated in Western Europe and the Nordic region. There is indeed a large gap between the two groups with more than a twice-fold order of magnitude in the amounts received for a day. Specifically, the mean of the three CEE countries is €447, while the mean of the three WE +Nordic countries is €985.

The average market share for Export of MC Servic-es in the selected 14 countries is 16.1%. Regarding total exports, Finland is first with its 26.8% share and Ireland exports only 8%. If we separate export

activity considering its destination, Hungary, Swit-zerland, Austria, Romania, France, UK, Ireland and Italy remained under 5% exporting to countries outside Europe and it is Spain which exported


Table 6.Average Daily Fee Rates of Selected

European MC Markets, 2010

3.2 AnalysisbyDailyRates3.2.1 AverageDailyFeeRatesofSelectedEuropeanmcmarkets,2010

3.2.2 ExportofmcServicesbySelectedcountries,2010

Country Total turnover of MC firms 2010 (million €)

Total turnover of MC firms 2009 (million €)

Share of MC market in Europe 2010

Total staff2010

Turnover per employee (€)

Germany 27 900 25 780 32.36% 185 000 150 811

United Kingdom 19 009 18 821 22.05% 36 789 244 658

Spain 9 903 9 572 11.49% 119 000 83 218

France 8 814 7 728 10.22% 49 800 176 988

Sweden 3 300 3250 3.83% 16 900 195 266

Netherlands 3 120 3080 3.62% 20 700 150 725

Italy 3 044 2866 3.53% 33 844 89 942

Denmark 1 717 2107 1.99% 10 900 157 523

Austria 1 581 2960 1.83% 102 584 15 412

Portugal 1 236 1 179 1.43% 15 423 80 140

Belgium 1 200 1190 1.39% 8 200 146 341

Finland 1 142 1 103.2 1.32% 11 860 96 290

Switzerland 1 056 875 1.22% 4 120 256 311

Norway 700 690 0.81% 3 900 179 487

Czech Republic 465 460 0.54% 8 700 53 448

Ireland 438 363.1 0.51% 3 427 127 809

Romania 325 350 0.38% 10 000 32 500

Poland 310 310 0.36% 5 600 55 357

Slovenia 271 268.5 0.31% 3 099 87 480

Hungary 215 245 0.25% 4 800 44 792

Greece 208 234 0.24% 1 770 117 514

Croatia 115 114.5 0.13% 900 127 778

Bulgaria 90 90 0.10% 1 400 64 286

Cyprus 50 50 0.06% 750 66 667

Total of selected countries 86 209 83 687 100% 659 466 128 033

* Figures edited in italic represent estimated data. Source of estimations: applying the trend gained from previous years’ Feaco Reports’ data.

Table 5.Key Figures of Selected European

MC Markets

19

There is still a remarkable dominance of Business Consulting within Management Consulting with the share of BC within MC at more than 50% in all exam-ined countries historically; however, in 2010 a new tendency can be observed. In eight of the twelve se-lected countries BC is still higher than 50%, but now other major service lines have also become signifi-cant. Development and Integration and Outsourc-

ing are quite strong in Spain (42% and 40%), Other Services plays a key role in Portugal (57.3%), while Development and Integration is above 10% in Ger-many, Spain, and France. Above 10% is IT Consulting in Germany, United Kingdom, Spain, Austria, Ireland, Slovenia, and Hungary. Above 10% are Outsourcing in Spain and France as well as Other Services in Por-tugal, Finland, Ireland and Greece.

the most at 10%. For countries inside Europe, the greatest exporter is Hungary with its 19% and Por-tugal at the other end at 5% relative to their own

national MC turnover. Eleven of the fourteen coun-tries export more to European countries and three countries export more to countries outside Europe.


0%

5%

10%

15%

20%

25%

Expo

rt

Finland Hungary Greece Spain Switzerland Austria Slovenia Germany Portugal Romania France UK Italy Ireland

Total 26.8% 23% 21.1% 21% 21% 17% 15.5% 15% 13.1% 12.8% 12% 10% 8.9% 8%

Outside Europe 8.1% 4% 8.2% 10% 4% 3.1% 8% 9% 8% 2.5% 4% 4% 0% 2%

Inside Europe 18.7% 19% 12.9% 11% 17% 13.9% 7.5% 6% 5.1% 10.3% 8% 6% 8.9% 6%

Germany United Kingdom Spain France Austria Portugal Finland Switzerland Ireland Slovenia Hungary Greece

Total turnover (million €)

27 900 19 009 9 903 8 814 1 581 1 236 1 142 1 056 438 271.1 215 208

Major service lines (%)Business Consulting (BC)

54% 74.1% 6% 62.1% 69.9% 42.7% 62.6% n.a. 57.6% 69.5% 47% 73.9%

IT Consulting 15.5% 25.9% 12% 6.4% 18.8% 8.6% n.a. 16.8% 13% 36% 4.6%Development & Integration

19.5% 0% 42% 16% 0% 9.2% n.a. 9.1% 7% 8% 4.1%

Outsourcing 6.4% 0% 40% 15% 2% 5.4% n.a. 4.4% 2% 4% 1.5%Other services 4.6% 0% 0% 0.5% 9.3% 57.3% 14.2% n.a. 12.1% 9% 5% 15.9%Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

BC DetailsStrategy 16.6% 7% 3% 8.6% 36% 9.4% 24.8% 29% 16.2% 22.5% 10% 17%Organisation/Operations Management

16.4% 36.7% 3%37.1%

16.5% 27.6% 14.7%71%

including IT Consulting

13% 29.5% 22% 25.6%

Change Management

6.5% 19% 0% 0% 3.2% 11.3% n.a. 15.7% 4.5% 8% 26.5%

Project Management

7.1% 4.8% 0% 14.3% 0% 0% 5.1% n.a. 5.9% 6.5% 3% 2.5%

HR Consulting 7.4% 6.6% 0% 2.1% 17.4% 2.5% 6.7% n.a. 6.8% 6.5% 4% 2.3%Total 54% 74.1% 6% 62.1% 69.9% 42.7% 62.6% n.a. 57.6% 69.5% 47% 73.9%

Figure 15.Export of MC Services by Selected Countries, 2010

Table 7.MC Market Composition by Service Line (% of Turnover), 2010

3.3 AnalysisbyServiceLines3.3.1 mcmarketcompositionbyServiceLine(%ofTurnover),2010

20

The breakdown of MC in four key countries is presented in Figure 16. In Business Consulting we find Germany closely followed by the UK in dominating the market; the next two are France and Spain. Regarding Development and Integration, we find Germany in first place, followed by Spain. The turnover of IT Consulting

is the highest in the UK and Germany is second; this is a change compared to last year. Outsourcing proved to be a significant service line in Spain. Surprisingly, in the UK in 2010 Outsourcing does not appear, however, in 2009 in the UK it was the second largest service line. Other Services only appear in the case of Germany.


Figure 16.Breakdown of MC in Selected Key

Countries (million €), 2010

0

5 000

10 000

15 000

20 000

25 000

30 000

Tota

l tur

nove

r in

mill

ion

€

Germany United Kingdom Spain France

Business Consulting (BC) 15 066 14 085 594 2 360

Development & Integration 5 441 0 4 159 608

IT Consulting 4 325 4 924 1 188 243

Outsourcing 1 786 0 3 961 570

Other Services 1 283 0 0 15

Total 27 900 19 009 9 903 8 814

3.3.3 BreakdownofmcinSelectedKeycountries(million€),2010

3.3.2 mcmarketcompositionbyServiceLine(million€),2010

Germany United Kingdom Spain France Portugal Austria Finland Switzerland Ireland Slovenia Hungary Greece

Total turnover (million €)

27 900 19 009 9 903 8 814 1 236 1 581 1 142 1 056 438 271,1 215 208

Major service lines (€)Business Consulting (BC)

15 066 14 085 594 5 473 528 1 105 715 n.a. 252 188 101 154

IT Consulting 4 325 4 924 1 188 565 0 297 98 n.a. 74 34 77 10Development & Integration

5 441 0 4 159 1 410 0 0 105 n.a. 40 19 17 9

Outsourcing 1 786 0 3 961 1 330 0 32 62 n.a. 19 5 9 3Other services 1 283 0 0 35 708 147 162 n.a. 53 24 11 33

BC DetailsStrategy 4 631 1 330 297 758 116 569 283 306 71 61 22 35Organisation/Operations Management

4 576 6 976 297 3 270 341 261 168 750 57 80 47 53

Change Management

1 814 3 612 0 0 40 0 129 n.a. 69 12 17 55

Project Management

1 981 912 0 1 260 0 0 58 n.a. 26 18 6 5

HR Consulting 2 065 1 255 0 185 31 275 77 n.a. 30 18 9 5Total 15 066 14 085 594 5 473 528 1 105 715 1 056 252 188 101 154

Discrepancies in total BC of UK are based on differentiated calculation method.

Table 8.MC Market Composition by

Service Line (million €), 2010

21

Considering the whole European MC Market, the three most significant sectors were Public Sector, Banking & Insurance, and Industry in 2010, the

same as in 2009, however, their order has changed. In 2010 the Public Sector had 20.7%, Banking & Insurance 20.1% while Industry 18.7% of the total.

In 2010 the Public Sector was dominant in four countries, in the United Kingdom, Ireland, Hungary and Greece. Banking & Insurance was the most

important in the turnover in two countries, Spain and France. Industry contributed to turnover to the highest degree in Germany, Finland, Switzerland and Slovenia.

3.4.1 mcmarketcompositionbyclientSector(%ofTurnover),2010


Figure 17.Breakdown of Business Consulting in Selected Key Countries (million €), 2010

Table 9.MC Market Composition by Client Sector (% of Turnover), 2010

Germany United Kingdom Spain France Finland Switzerland Ireland Slovenia Hungary Greece

Total turnover (million €) 27 900 19 009 9 903 8 814 1 142 1 056 438 271.1 215 208

Industry 32.4% 6% 6% 14.5% 38.7% 27% 9.8% 29.5% 11% 11.9%Banking & Insurance 23.7% 24.4% 25% 30% 5.1% 26% 21.6% 14.5% 25% 5.6%Public sector 10.1% 29.9% 16% 15% 11.8% 9% 27.3% 13% 28% 46.6%Aerospace & Defense 0% 1.7% 8% 3% 0% n.a. 0.1% n.a. 0% 0%Telecoms & Media 8.2% 3.6% 17% 5% 8.3% 5% 13.3% 7.5% 9% 12.7%Wholesale & Retail 4.3% n.a. 3% 5% 9.4% 5% 3.8% 7.5% 8% 6%Energy & Utilities 7.6% 9.7% 11% 11% 7.3% 6% 7% 13.5% 14% 3%Transport & Travel 5.3% 3.1% 9% 4% 2.8% 5% 4.7% 2% 1% 1.9%Healthcare (pharmaceuticals & biotech included)

3.5% 3.3% 2% 3% 7.7% 15% 7.1% 5.5% 3% 2.8%

Other 4.9% 3% 3% 8.6% 0% 2% 5.3% 7.5% 1% 9.5%Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

3.4 AnalysisbyclientSector

3.3.4 BreakdownofBusinessconsultinginSelectedKeycountries(million€),2010

In further analysing Business Consulting (BC), we can state that Strategy has strengthened its role in Ger-many, but lost in importance in the UK, France and Spain. Organization/Operation Management (OM) dominates the BC Market in the United Kingdom and in France. Nevertheless, OM is back to back with Strategy in Germany and accounts for the same as

Strategy in Spain. Change Management and Project Management are close to each other in case of Ger-many. In the UK Change Management has strength-ened its role at the expense of Project Management. Human Resource (HR) Consulting enlarged its share only in Germany and has lost some ground from its previous importance in the UK and France


�Strategy 4 631 1 330 297 758

�Organisation/ Operations Management

4 576 6 976 2973 270

Change Management 1 814 3 612 0

Project Management 1 981 912 0 1 260

HR Consulting 2 065 1 255 0 185

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

Tota

l tur

nove

r in

mill

ion

€

22


Table 10.MC Market Composition by Client

Sector (million €), 2010

3.4.2 mcmarketcompositionbyclientSector(million€),2010

Germany United Kingdom Spain France Finland Switzerland Ireland Slovenia Hungary Greece

Total turnover (million €) 27 900 19 009 9 903 8 814 1 142 1 056 438 271.1 215 208

Industry 9 040 1 141 594 1 277 442 285 43 80 24 25Banking & Insurance 6 612 4 638 2 476 2 644 58 275 95 39 54 12Public sector 2 818 5 684 1 584 1 322 135 95 120 35 60 97Aerospace & Defense 0 323 792 220 0 n. a. 0 n. a. 0 0Telecoms & Media 2 288 684 1 684 441 95 53 58 20 19 26Wholesale & Retail 1 200 n. a. 297 441 107 53 17 20 17 12Energy & Utilities 2 120 1 844 1 089 970 83 63 31 37 30 6Transport & Travel 1 479 589 891 353 32 53 21 5 2 4Healthcare (pharmaceuticals & biotech included)

977 627 198 264 88 158 31 15 6 6

Other 1 367 570 297 758 0 21 23 20 2 20

In the four key countries the order of the client sectors based on their turnovers in volume is as follows:

In Germany the main purchaser of consulting services is Industry, in the United Kingdom it is the Public Sector, and in Spain and France it is the Banking & Insurance sector.

Industry in Germany generates turnover eight times higher than this sector does in the UK.

The turnover in the UK generated by the Public Sector exceeds more than twice its equivalent in the other three key countries.

Figure 18.Turnover of Key Markets

by Client Sector


Total 27 900 19 009 9 903 8 814

Aerospace & Defense 0 323 792 220

�Healthcare (pharmaceuticals & biotech included)

977 627 198 264

Wholesale & Retail 1 200 0 297 441

Other 1 367 570 297 758

Transport & Travel 1 479 589 891 353

Energy & Utilities 2 120 1 844 1 089 970

Telecoms & Media 2 288 684 1 684 441

Public sector 2 818 5 684 1 584 1 322

Banking & Insurance 6 612 4 638 2 476 2 644

Industry 9 040 1 141 594 1 277

0

5 000

10 000

15 000

20 000

25 000

30 000

Turn

over

mill

ion

euro

s

3.4.3 KeymarketcompositionbyclientSector

23

4 Main Trends in Management Consulting in 2010/20114 main Trends in management

Consulting in 2010/2011

4.1 Austria

The total turnover of the Management Consulting market in Austria accounted for 1581 million € in 2010. As Austria did not participate in surveys in previous years, we can only compare its current results with other countries. The growth rate of Austria was 9.8% in 2010 and this is the highest rate among the examined countries. Among key service lines Business Consulting dominates with almost 70% and IT Consulting is the second major service line. The 88.7% of the consultancy assignments derive from the private sector. Regarding Austria’s export activity, it exports consulting services to countries within the EU mainly (81.8%) but has almost one-fifth of is volume with countries outside the EU (18.2%). The number of consultants compared to total employment in the MC sector stands at 58%.

Austria

Total turnover (million €) 1 581

Growth rates

Growth rate 2009 n.a.

Growth rate 2010 9.8%

Growth rate 2011 (prevision) n.a.

Key service lines (%)

Business Consulting 69.9%

IT Consulting 23%

Development & Integration 0%

Outsourcing 2%

Other Services 5.1%

Key sectors (%)

Private sector 88.7%

Public sector 11.3%

Export (%) 17%

EU 13.9%

Countries outside the EU 3.1%

Number of consultants 37 740

Total staff 64 844

4.2 Denmark

In 2010 Denmark provided data concerning the total turnover in 2010, which accounted for 1717 million €; their growth rate in 2010 was -1.5%. They highlighted that the ratio of their assignments coming from the Public Sector is 35.2%. Compared to last year’s results this figure has decreased as in 2009 the Public Sector was the most significant one with 43.7% followed by Industry.

Denmark


Growth rates

Growth rate 2009 -3.6%




Business Consulting n.a.

IT Consulting n.a.

Development & Integration n.a.

Outsourcing n.a.

Other Services n.a.

Key sectors (%)

Industry n.a.

Banking & Insurance n.a.

Public sector 35.2%

Export (%) n.a.

EU n.a.

Countries outside the EU n.a.

Number of consultants n.a.

Total staff n.a.

24

4 Main Trends in Management Consulting in 2010/2011

4.3 Finland

MC market in Finland generated 1142 million € in 2010. This year’s data exceeded the turnover of 2009 (1103.2 million €). In other words, Finland produced a healthy 6% growth rate after last year’s 0.5%. While in 2009 some staff reduction took place in the business, in 2010 the number of total staff has increased and the number of consultants with it also. Business Consulting dominated the market with a 62.5% contribution to turnover, getting ahead of Other Services (14.2%) and Development & Integration (9.2%) which came in second and third. In the private sector the demand coming from Industry was remarkable, it created the highest demand for MC, 38.7%, the demand from the Banking & Insurance sector was quite low (5.1%), but the results of the Public Sector were higher than last year, in 2010 it accounted for 11.8%. Almost 70% of the export activity went to countries in Europe; completed by export turnover into countries outside Europe, export activity of Finland altogether account for 26.8% of the total rate of export activity of MC market in 2010.

4.4 France

By 2009 French firms described the recession in past terms and this proved to be a self-fulfilling prophecy as the growth rate for 2010 even exceeded the forecast; it was 5% instead of the previously forecasted 3%. Business Consulting produced the largest part of the turnover (62.1%), followed by Development & Integration (16%) and Outsourcing (15%), IT Consulting contributed to it with 6.4 percent. Regarding client sectors Banking & Insurance leads the line (30%), Public sector is the second (15%), closely followed by Industry (14.5%). The export of consulting services of France mainly focused on European countries (66.7%), but they were present outside Europe as well (33.3%) which together resulted in a 12% total export activity.

Finland


Growth rates


Growth rate 2010 6%




IT Consulting 8.6%

Development & Integration 9.2%

Outsourcing 5.4%

Other Services 14.2%

Key sectors (%)

Industry 38.7%

Banking & Insurance 5.1%

Public sector 11.8%

Export (%) 26.8%

EU 18.7%



Total staff 11 860

France


Growth rates

Growth rate 2009 -7%

Growth rate 2010 5%

Growth rate 2011 (prevision) 6%



IT Consulting 6.4%


Outsourcing 15%

Other Services 0.4%

Key sectors (%)

Industry 14.5%

Banking & Insurance 30%

Public sector 15%

Export (%) 12%

EU 8%

Countries outside the EU 4%


Total staff n.a.

25


4.5 Germany

The total turnover of the German MC market increased to 27 900 million euros in 2010 which means that there was only one year (2009) when the upward tendency in the growth of their turnover experienced some setback. By 2010 the German MC market experienced a 5.3% growth again. It is worth mentioning that their forecast concerning their growth rate for 2010 was 5.3% which means represents a solid prognostication system. Of he total turnover Business Consulting generated 54%, followed by Development & Integration which accounted for 19.5%. The key client sector in 2009 was Industry, having generated a 32.4% demand for MC services. Banking & Insurance performance was also remarkable recording 23.7%. For its exports, Germany focused on countries outside Europe (60%), with the remainder (40%) directed to European countries. The number of total staff working in the field of MC increased by 7000 compared to last year and this change encompassed exclusively consultants, not supporting staff. (for further information see: Facts&Figures zum Beratermarkt 2010/2011 www.bdu.de).

Germany


Growth rates





Business Consulting 54%

IT Consulting 15.5%


Outsourcing 6.4%

Other Services 4.6%

Key sectors (%)

Industry 32.4%


Public sector 10.1%

Export (%) 15%

EU 6%



Total staff 185 000

4.6 Greece

For Greece, the high growth rate (9%) in 2008 turned negative (-9.2%) in 2009 and this downfall gained further momentum in 2010 with a decline of -11.2%. Business Consulting highly dominated the market, covering the 73.9% of key service lines. Regarding the key client sectors, Public Sector (46.6%) and Industry (11.9%) are the largest. Greece’s export activity was remarkable (21.1%), from which European countries accounted for three-fifth and non-European countries for two-fifth of the total. The number of total staff working in the field of MC was 1770, with 110 people less than in 2009, and included mainly consultants (1551) and only few support staff.

Greece

Total turnover (million €) 234

Growth rates



Growth rate 2011 (prevision) -3%



IT Consulting 4.6%


Outsourcing 1.5%


Key sectors (%)

Industry 11.9%


Public sector 46.6%

Export (%) 21.1%

EU 12.9%



Total staff 1 770

26


4.7 Hungary

The total turnover of the Hungarian Management Consulting market was 215 million Euros (30 m € less than in 2009) and the growth rate for the Hungarian MC market was -12%. Hungary predicted a -10% growth rate for 2010 in the previous year, thus revealing a realistic forecasting scheme. The anticipation for 2011 is more optimistic, with a growth rate of 2.5% projected for 2011. The dominant category proved to be Business Consulting (47%), followed by IT Consulting (36%) in 2010. In terms of the client base, the Public Sector was in first place (28%), closely followed by Banking & Insurance (25%). Still, the Public Sector lost in importance as in 2009 about 40% was connected to this sector. In regard to export activity over four-fifth of the total is directed to countries within Europe. Consultants dominate heavily over supporting staff as can be seen in the ratio of 4400 to 4800.

Hungary


Growth rates






IT Consulting 36%


Outsourcing 4%

Other Services 5%

Key sectors (%)

Industry 11%


Public sector 28%

Export (%) 23%

EU 19%



Total staff 4 800

27


4.8 Ireland

Prospects for growth in the Irish economy continue to depend on external conditions as well as the impact of fiscal adjustments and banking restructures being implemented domestically.

The global economic recovery continues at an uneven pace, with moderated growth in advanced economies and strong growth in developing economies.

Significant progress has been made domestically on the main challenges facing the economy with fiscal developments to mid 2011 in line with expectations and progress achieved in re-capitalising and restructuring the banking sector.

The competitiveness of the Irish economy continues to improve reflecting price and cost developments – stable wage levels relative to most trading partners - and strong productivity growth. Structural reform targeted in the public sector and certain private services sectors has the potential to boost growth over the medium-term.

GDP declined by 0.4% in 2010 with an increase of 1.8% projected for 2011 driven by exports performance offset by a decline in domestic demand. Employment is expected to contract by 1.7% in 2011 with a decline in the labour force of 1% mitigating the impact on unemployment, projected at 14.2%.

The decline in demand affected the consultancy sector in 2010 with business volumes down an estimated 7%.

A Central Statistics Office survey in 2010, with limited data indicates prices, i.e. fee rates, being down 0.7% in a category which includes Business Management Consultancy and up 1.9% in Computer Programming and Consultancy.

A survey of IMCA members indicated that the consultancy market is projected to recover slightly in 2011. Large practices were more positive than small practices and sole practitioners. Projections for Strategy consultancy are positive and the outlook by sector is particularly pessimistic for Central Government, Other Public Sector and SMEs. A slight increase in consultancy employment was projected for 2011 with uncertainty re future prospects seen as the main constraint to growth.

Total turnover in the consultancy market in Ireland is projected at €438m for 2010 with a consultant employment of 3,060. The increase over the previous data – restated at €419m and 2,806

consultants respectively due to more accurate data - is due to extra practices reported rather than market growth. Outsourcing and Development & Integration are under-reported and if included fully would increase turnover and employment for both years.

These figures again show management consultancy in Ireland to have a smaller share of the economy than most other European countries (0.3% of GDP ROI 2010 vs. FEACO average of 0.7% in 2009). This may be due to Ireland’s high element of multi-national enterprises with overseas HQs and a relatively weak indigenous sector. Smaller economies also tend to be less consultancy-intensive as seen in the FEACO data.

The market is primarily domestic with only 8% exported to Europe or elsewhere.

By service area, Management Consulting comprises 56% of the market with IT Consulting a further 17%. Outsourcing appears to be under-reported at 4% of the total (vs. 34% in the UK 2009).

By sector, Public Sector consultancy is largest at 27% with Banking & Insurance at 22% and Industry at 10%.

Ireland


Growth rates






IT Consulting 16.8%


Outsourcing 4.4%


Key sectors (%)

Industry 9.8%


Public sector 27.3%

Export (%) 8%

EU 6%



Total staff 3 427

28


4.9 Italy

Management Consulting in Italy is a highly frag-mented market, with more than 16 000 compa-nies developing a total turnover of slightly more than 3 bn Euros.

There are 35 top players - i.e. companies with more than 50 employees and on the other side, there are 14 000 micro companies (with up to 2 employ-ees), among these two large clusters there exists a group of 2500 midsized companies.

In 2010 the Italian market shrunk for the second year in a row at a -0.8% rate (in 2009 the market decreased by 5%). The largest companies suffered the most from the economic downturn, with a de-crease in their turnover of more than 5%. Smaller companies managed to remain stable or enjoyed a limited growth. In more general terms, 2010 wit-nessed a significant reshuffling in market shares among various players: almost 25% of the com-panies suffered a decrease in turnover of more than 10%, while, on the other side, 35% of them enjoyed a growth in excess of 10%.

All the players have buoyant expectations for 2011: the estimated turnover growth is close to 10%, and only 13% of the companies interviewed forecast a further decrease in turnover.

The market for Management Consulting in Italy is clearly divided between large and a combination of medium and small companies:

The top 35 firms have 80% market share of the consulting budget spent by large corpora-tions (groups of 500 mln turnover and more), and are mostly focused on the services market: they own 79% of the banking and insurance market, 77% of Utilities, and 66% of communi-cations, media and entertainment

Small and medium business are focused on small-medium clients (they own 96% share of companies with less than 50mln euro turno-ver), and have a significant presence in indus-trial sectors, where they develop 50% of their turnover

A number of mid-sized companies compete with large consulting firms in the large corpo-rate market, thanks to a very focused strategy of niche specialization

Italy suffers from a structural issue of underinvest-ment in the Public Sector: only 13.5% of consult-ing turnover in Italy is generated by Healthcare and Public Sector.

Italy


Growth rates



Growth rate 2011 (prevision) 9.4%



IT Consulting n.a.


Outsourcing n.a.

Other Services n.a.

Key sectors (%)

Industry n.a.


Public sector n.a.

Export (%) 8.9%

EU 8.9%



Total staff 33 344

29


4.11 Romania

After eight years of a nice, sustainable growth pace, the Romanian management consulting market experienced a downturn in 2009. The really high growth rate of 30% in 2008 turned into a decrease of 16% in 2009. This dramatic change did not continue, but a modest downfall can still be seen in 2010. However, there is an optimistic mood, with expectations for a 20% growth rate in 2011. The majority of clients in the recent past came from the Public Sector (35.2%). Romania reported data a 12.8% rate for export activity for 2010; of this, four-fifth was targeted countries within the EU and one-fifth was directed to countries out of the EU. The number of total staff working on MC market did not change at all, it was 10 000 in 2010 and 80% of those worked as consultants, 20% as supporting staff.

4.10 Portugal

The Portuguese economy was greatly affected by the global crisis in 2009. Nevertheless the MC market could recover very quickly as in 2010 this MC market could attain a 4.8% growth rate. The total turnover was 1236 million euro with key service lines being Other Services (57.3%) and Business Consulting (42.7%). In 2009 there was a challenge for the Portuguese economy includ-ing the MC sector, to develop export activities. In 2010 export accounted for 13.1% which com-pared to previous year’s 8.3% can be considered a good result. The number of people employed by the MC market was 15423 from whom 9254 were working as consultants. This means that the number of people employed in this sector has de-creased by almost 2000.

Romania


Growth rates






IT Consulting n.a.


Outsourcing n.a.

Other Services n.a.

Key sectors (%)

Industry n.a.


Public sector 35.2%

Export (%) 12.8%

EU 10.3%



Total staff 10 000

Portugal


Growth rates






IT Consulting 0%


Outsourcing 0%


Key sectors (%)

Industry n.a.


Public sector n.a.

Export (%) 13.1%

EU 5.1%



Total staff 15 423

30


4.12 Slovenia

Growth in some industry sectors, increased demand in the banking sector for necessary restructuring, new products, cost reduction and increased de-mand for special knowledge were the main demand drivers for MC in 2010. On the other side, cost re-duction schemes in both private and public sector, lack of (liquid) assets, short term oriented clients and strong pressure on fees in public sectors were factors with highly negative effects.

Clients demanded solutions for business optimisa-tion, cost reduction, market positioning and new markets, risk and change management, project management and several lines of human resource or HR management (communication, leadership, team work, focused training, motivation, and pay-ment schemes).

It is expected that this demand structure is not go-ing to change considerably in 2011, but Strategy Consulting should experience good growth and cli-ents will pay again more attention to growth and innovation.

It is now expected that consultants will deliver ad-ditional value for the agreed project and fee.

Clients are generally seen as less loyal than before and long term relations can change suddenly. In spite of general and strong pressure on charges, however, some MC firms are able to increase their fees.

Consulting firms will have to meet many challenges as new rivals arise and clients demand more value from their suppliers. Consultants will also have to increase their presence in foreign markets and find appropriate local partners.

In 2010 the impact of recession led to decreased economic results in global terms. In spite of a cer-tain degree of revival in some export oriented sec-tors the general picture was worse than at the end of 2009. Management consulting firms had to cope with unstable and deteriorating market that affect-ed at least one third of them. Their income – in total - was still a bit higher than in 2009 and amounted to 271 m €. About 15% of the income was realised outside Slovenia, half of this hare within the EU countries. The number of consultants slightly grew. But it was clearly stated that a significant upturn is still to come.

Management consulting amounted to roughly 70% of the total income. The structure of individual serv-ice lines was not changed a great deal. As expected, the share of Strategy Consulting was again reduced while Organisation /Operations Management

reached a higher share. Among other consulting services the demand for Executive Recruitment Con-sulting decreased quite considerably.

Industry remained the most important client (in spite of a relative decrease in comparison with 2009) and is followed by Banking and Insurance, while Public Sector remains in third place but with a small-er share than before.

In general terms, 2011 is unlikely to be better than the previous year without a strong revival of invest-ment demand that could incite growth in a set of complementary industry sectors. The nation is ex-pecting a growth of 2% in its GDP; but appropri-ate government decisions and action are needed to achieve that. Until then, some sectors and a number of individual firms remain in n uncertain, risky situation.

The Public Sector is not capable to improve its wors-ening image as less important and respected client. Decreasing demand, not sufficient quality level of public procurement and unlimited pressure on fees not only deteriorate market conditions, but start to harm the MC sector as a whole. It I possible that ex-isting networks may develop and result in mergers.

Consultants are expected to foster innovation proc-esses and to offer efficient new business models, ca-pable of coping with major changes in the economy and in society.

MC firms will have to focus on foreign markets much more ambitiously and with necessary new skills, suc-ceeding to find able and trustworthy local partners.

Slovenia


Growth rates






IT Consulting 12.5%


Outsourcing 2%

Other Services 9%

Key sectors (%)

Industry 29.5%


Public sector 13%

Export (%) 15.5%

EU 8%



Total staff 3 099

31


4.13 Spain

Turnover for the industry increased 3,5% in 2010 contrasting with the stagnation of 2009. The do-mestic market remained unchanged in 2010, but the external market increased strongly.

For 2011 it is estimated that the industry will once again see a small increase in sales as in 2010 be-cause of external markets.

The present economic crisis in Spain has put to-day’s clients in a consolidation and maintenance period, which makes it necessary to delay new projects of investment.

To overcome this situation, the Spanish consulting sector has gone abroad looking for new business opportunities. Many Spanish firms have imple-mented a strategy of internationalization, either by creating overseas subsidiaries or by competing for projects on the international market. This strategy has brought the increase of revenues and profits. This consulting industry’s strategy, has increased the total turnover by a 3,5%.

The employment in the MC sector has increased more than the turnover and the margins per em-ployee have fallen down.

Public Sector incomes have fallen because the budgets have been cut down and it has been a strong Public Administration investment reduc-tion in the domestic market. The opposite situa-tion happened in other countries, mainly in South America.

Another driver of this market during 2010 comes from cost optimizing policies that bring about services related to IT outsourcing, development and integration, and, to a smaller extent, business consulting, all of them pointing to the fundamen-tal goal of being more efficient.

Some of the main clients of the consulting market are Banking & Insurance companies, which repre-sented a 25% market share in 2009, followed by the Public Sector at 16% market share, and then the Telecom sector at 15%. The main part of the services offered to these three markets is related to cost reduction, infrastructure consolidation,

application management, business process reen-gineering, efficiency and customer relation man-agement.

In this juncture, where domestic clients’ capacity of investment has diminished for reasons of un-certainty and crisis, the consulting market faces important challenges including:

increasing capacity for further internationaliza-tion.

supporting clients’ businesses principal needs, which mainly consist of cost reduction and busi-ness consolidation.

helping the Public Sector to improve its proc-esses, by being more efficient and developing its capabilities.

focusing part of their services towards business consulting, so that they will not lose future per-spective.

The clients’ main objectives for the next years are: internationalisation, cost reduction, business con-solidation, and customer relation management optimization.

Spain


Growth rates






IT Consulting 12%


Outsourcing 40%

Other Services 0%

Key sectors (%)

Industry 6%


Public sector 16%

Export (%) 21%

EU 11%



Total staff 119 000

32


4.14 Switzerland

The total turnover of MC market in Switzerland was 1056 million € in 2010. The MC market experienced a 5.6% growth rate, more than was expected in 2009. They forecast a 6% growth rate for 2011. In 2011 the Swiss differentiated the service line of Strategy with Organizations management including IT Consulting; these two together cover the whole Swiss market (Strategy 29%, Org.Mgmt including IT Cons. 71%). Industry overtook financial sector in 2011, so it has become the largest sector in Switzerland concerning MC services (27% Industry, 26% Banking and Insurance). Regarding their export, Switzerland has an outstanding rate of 21%, out of which four-fifth is directed to countries within the EU. In 2010 the number of total staff was 4120; of these 3520 worked as consultants.

4.15 UnitedKingdom

The year 2010 turned out to be better for the UK Management Consulting market than it was expected. They anticipated a 4% negative growth rate; the actual growth rate in 2010 turned out to be a small but positive 1%. This resulted in almost 200 million € growth in total turnover compared to the level of 2009. In 2010 the total turnover of UK MC market was 19 009 million €. Business Consulting remained the most important service line (74.1%), with IT Consulting; together they cover the whole MC market. The most remarkable client sector was Public Sector (29.9%) followed by Banking & Insurance (24.4%). The role of export activity of the MC market in the UK has strengthened also, from last year’s 7% to 10% in 2010 (three-fifth of which directed to countries within the EU, two-fifth to countries out of the EU). There was a drastic reduction in the number of staff working in the field of Management Consulting. While in 2009 the MC market could employ 64 717 people, 56 360 of whom worked as consultants, in 2010 they reported that the number of the total staff decreased to 36 789, out of whom 35 663 were consultants.

Switzerland


Growth rates





Strategy 29%

Organization mgmt incl. IT consulting 71%


Outsourcing n.a.

Other Services n.a.

Key sectors (%)

Industry 27%


Public sector 9%

Export (%) 21%

EU 17%



Total staff 4 120

United Kingdom


Growth rates


Growth rate 2010 1%




IT Consulting 25.9%


Outsourcing 0%

Other Services 0%

Key sectors (%)

Industry 6%


Public sector 29.9%

Export (%) 10%

EU 6%



Total staff 36 789

33

5 About Feaco, The European Federation of Management Consultancies Associations

5 about feaCo, the european federation of management Consultancies associations

FEACO, the European Federation of Manage-ment Consultancies Associations, a non-profit organisation, was established in 1960 and has 17 national member associations as members:

fifteen from the European Union: Austria, Croatia, Cyprus, Czech Republic, Finland, France, Greece, Hungary, Italy, Poland, Portu-gal, Romania, Slovenia and Spain;

one from EFTA: Switzerland; one associate member: Bosnia & Herzegovina; one affiliate member: Hong Kong.

FEACO is a European organisation. Its general purpose is to assist in the promotion and devel-opment of the profession of Management Con-sultancy in Europe by providing support to its constituent National Association membership in those areas where a collective voice is stronger than the sum of its individual members.

Main objectives of FEACO are

The development of the Management Consul-tancy market, raising its image and profile at European and international level, by the pro-motion of common professional ethics, quality and best practice.

The promotion of the interests of Manage-ment Consultancy with the different Euro-pean and International organisations, by maintaining a close relationship with the Eu-ropean Institutions and other pan-European and international organisations in order to ensure an awareness of and defend profes-sional interests (not including lobbying for sales opportunities).

The development of a dynamic forum for net-working and service provision, by encouraging networking by members and between mem-bers through the sponsorship and organisation of conferences and meetings, the establish-ment of mutual interest working groups and through close cooperation with other consul-tancy organisations.

2010-2011 Events

The FEACO 2012 is published and updated at the FEACO homepage at www.feaco.org.

Contact:Kim Karme (Member of ExCo.)David Ifrah (Secretary General)[email protected]

34

6 member associationsFédérationEuropéennedesAssociationsdeconseilsenOrganisation

EuropeanFederationofmanagementconsultanciesAssociationsFEAcO

FULLmEmBERS

AUSTRIA Fachverband Unternehmensberatung und Informationstechnology / Austrian Professional Association of Management Consultancy and Information Technology

Wiedner Hauptstrasse 63 A – 1045 Vienna Austria Phone: +43 5 90 900 3540 Fax: +43 5 90 900 3178 Email: [email protected] / [email protected] Website: http://www.ubit.at / http://www.incite.at Contacts: Mr Alfred Harl, President

Mr Philipp Graf, Executive Director

CROATIA HUPS-CAMC Hrvatska Udruga Poslovnih Savjetnika / Croatian Association of

Management Consultans Amruseva 8 HR-10000 Zagreb Phone: +385 1 5505809 Fax: +385 1 5505803 Email: [email protected] / [email protected] Website: http://www.ups-amc.org Contact: Mr Gordan Kolak

CYPRUS CYBCA Cyprus Association of Business Consultants 30, Grivas Dhigenis Ave. P.O. Box 21657 1511 Nicosia Phone: 357 22 665 102 Fax: 357 22 669 459 Email: [email protected] Contact: Mr Angelides Kyriacos

CZECH APP REPUBLIC Association for Consulting to Business Veletřzni 21 CZ -170 00 Prague 7 Phone: 420 2 20 87 90 43 Fax: 420 2 20 87 90 43 Email: [email protected] Website: www.asocpor.cz Contact: Mr Jan Zavrel

FINLAND LJK Liikkeenjohdon Konsultit LJK ry World Trade Center, PO Box 800, FI-00101 Helsinki Phone: +358 (0) 9 622 4442 Email: [email protected] Website: www.ljk.fi Contact: Mr Kim Karme (President) FRANCE SYNTEC Conseil en management 3 Rue Léon Bonnat F - 75016 Paris Phone: +33 1 44 30 49 20 Fax: +33 1 40 50 73 57 Website: www.syntec-management.com Contacts: Mr Hervé Baculard / Mr David Ifrah

GREECE SESMA Hellenic Association of Management Consulting Firms 101, Vas. Sophias Ave, Mavili Square GR – 115 21 Athens Phone: 30 210 647 0660 Fax: 30 210 647 0661 Email: [email protected] Website: www.sesma.gr Contacts: Mr Pantelis Koukos / Mrs Maria Tsioumani

HUNGARY VTMSZ Association of Management Consultants of Hungary 14. Október 6. utca H–1051 Budapest Phone: +36 20 922 4241 Fax: +36 1 269 1920 Email: [email protected] / [email protected] Website: http://www.vtmsz.hu Contacts: Ms Krisztina Baukovácz / Ms Éva Borbarát

Ms Mariann Schainpauer ITALY ASSOCONSULT Associazione Federativa Imprese di Consulenza Viale dell’Astronomia, 30 00144 Roma - Italy Phone: 39 06 97616704 Fax: 39 06 96048780 Email: [email protected] Website: www.assoconsult.org Contact: Mr. Ezio Lattanzio

POLAND SDG Stowarzyszenie Doradcow Gospodarczych w Polsce Ul. Emilii Plater 53 p XIII loc 1360 PL- 00-113 Warsaw Phone: 48 509 382 481 Fax: 48 22 520 6200/05 Email: [email protected] Website: www.sdg.com.pl Contact: Mr Krysztof Grzybowski

PORTUGAL APPC Associaçăo Portuguesa de Projectistas e Consultores Avenida Antonio Augusto Aguiar 126 – 7th floor P – 1050-020 Lisbon Phone: 351 21 358 0785/6 Fax: 351 21 315 0413 Email: [email protected] Website: www.appconsultores.org.pt Contacts: Mr António Seixas de Aguiar

Mr. Manuel Batista Ms Manuela Lourenço

ROMANIA AMCOR Asociatia Consultantilor in Management din Romania S47-49 Ion Brezoianu St, Entr B. level 2, Appt. 166, 1st district 010134 Bucharest Phone: 40 21 311 5175 Fax: 40 21 311 5175 Email: [email protected] Website: www.amcor.ro Contacts: Mr Mihai Svasta / Ms Raluca Hău SLOVENIA AMCOS Association of Management Consultants of Slovenia Dimiceva 13 SI -1504 Ljubljana Phone: 386 1 5898252 Fax: 386 1 5898100 Email: [email protected] / [email protected] Website: http://www.gzs.si/zpsd

http://amcos.gzs.si Contacts: Mr Andrej Drapal / Mr Borut Potocnik

Mrs Majda Dobravc

SPAIN AEC Asociación Espańola de Empresas de Consultoría C/ Monte Esquinza 34 2° B E - 28013 Madrid Phone: 34 91 308 0161 Fax: 34 91 391 3593 Email: [email protected] Website: http://www.consultoras.org Contacts: Mr Eduardo Mendicutti / Mr. Jordi Casals

SWITZERLAND ASCO Association of Management Consultants Switzerland Weinbergstrasse 31 CH - 8006 Zürich Phone: 41 (0)43 343 94 80 Fax: 41 (0)43 343 94 81 Email: [email protected] Website: http://www.asco.ch Contact: Ms Bettina Fritschi

ASSOcIATEmEmBER BOSNIA AND LESPNET HERZEGOVINA Association of Business Consultants in Bosnia and Herzegovina Branilaca Grada 47/3 71000 Sarajevo Phone: 387 33 222 854 / 442 567 Fax: 387 33 442 567 Email: [email protected] / [email protected] Website: http://www.lespnet.ba Contacts: Mr Fikret Hadzic / Mr Edin Alic

AFFILIATEmEmBER HONG KONG MCAHK Management Consultancies Association of Hong Kong 14th Floor, Room 1403B 9 Queen´s Road Central Phone: +852 2856 0038 Fax: +852 2565 6628 Email: [email protected] Website: http://www.mca.org.hk Contacts: Mr. K K Yeung, JP / Mr. Marcello de Guisa

6 Member Associations

35

7 Appendix – Definitions7 appendix – Definitions

1. European MC Market:Austria, Belgium, Bosnia and Herzegovina, Bul-garia, Croatia, Cyprus, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ire-land, Italy, Netherlands, Norway, Poland, Portu-gal, Romania, Slovenia, Spain, Sweden, Switzer-land, United Kingdom

2. Participants in the Feaco survey 2010/2011: Austria, Bulgaria, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Portugal, Romania, Slovenia, Spain, Switzerland, United Kingdom

3. Nordic region:Denmark, Finland, Norway, Sweden

4. Central & Eastern Europe:Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Greece, Hungary, Poland, Roma-nia, Slovenia

5. Western Europe:Austria, Belgium, Ireland, Italy, Netherlands, Portu-gal, Switzerland

Industry Sector:Aerospace and Defense: includes commercial and defense aerospace, airlines and airports and space (civilian) and related manufacturing and associated research

Automotive Products: automotive (motorized road transport vehicles) manufacturers, suppli-ers, systems integrators and distributors

Consumer Products: food and tobacco prod-ucts, textile & apparel, beauty & toiletries, metal (except machinery & automotive products and equipment) wood & furniture, paper and printed products

High Tech Products: all cutting edge technol-ogy: including cutting edge technology used in civilian and defense related aerospace

MachineryChemicalsIT hardware, software & computer servicesOther industries

Banking and Insurance Sector:All Banking and Financial services: including commercial banks, investment managers, mutual funds companies, brokerage firms, investment banks, private banking and trust companies, sav-ing banks, credit unions, mortgage banking com-panies, international banks and finance companies

Insurance: insurance carriers, agents, brokersand services

Healthcare, pharmaceutical and biotech:Healthcare: providers (hospitals and physicians), payers (insurance companies and HMOs) and dis-tributors (of medical equipment and supplies)

Pharmaceuticals and biotech: pharmaceuti-cals manufacturers and biotech companies, in-cluding biofuels

Wholesale& Retail Sector:Wholesale & Retail: all distribution incl. luxury retailers, specialty retailers, mass merchandisers, discount retailers, grocery chains, convenience stores, drug chains, car dealers, restaurants, home improvement chains, catalogue retailers and etailers of durable and non-durable goods such as building materials, hardware, general merchandise, food, automotive dealers, apparel and accessories, furniture, food & drink etc…

Transport & Travel Sector:Transport/travel includes all transport by air, road or water of goods or passengers: private transportation organisations (travel and urban transport), carriers and shippers as well as logis-tics services companies

Telecoms and Media Sector:Communication/Media/Entertainment: pub-lishers, entertainment companies, record labels; all communications not being telecommunica-tions

Telecommunications

Energy & Utilities Sector:Energy: petrol and gas extraction, coal, mining, clean energies (solar, wind) excluding biofuels (=biotech); chemicals & petrochemicals

Utilities: production and distribution of elec-tricity, gas and water (incl. irrigation systems and sewage treatment)

Public Sector: services provided to all levels of the public sector: local, regional, national and EU.

Other Sectors:Not for Profit Private SectorBusiness servicesAll other sectors (not industry sectors)

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Feaco Survey 2010-2011

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