Consultancy sector activity predicted to have single-digit growth over 2024
Activity in the consultancy sector is set to have single-digit growth this year, according to figures by the Management Consultancies Association (MCA).
The latest survey conducted by the MCA reveals that activity in the sector grew by 11 per cent in 2023. The survey expects it to drop to 9 per cent this year but returning to double digits growth in 2025 (11 per cent).
The data showed that 73 per cent of consulting leaders say growth met or exceeded expectations last year, which was lower (85 per cent) than the previous year. The report highlights that growth is returning to more sustainable levels following an unprecedented period of client demand post pandemic when the sector achieved over 20 per cent growth rates.
The survey stated that 94 per cent of consultants believe client services related to AI and emerging technology will provide the biggest opportunity for expansion in consulting this year.
The areas that are expected to experience less growth are consulting in the retail and leisure sector as it is likely to continue to experience a slowdown in activity.
Although still increasing, sustainability services are also predicted to grow at a slower rate as clients face economic challenges and focus more on the day to day running of their businesses.
Commenting on the report, Tamzen Isacsson, MCA chief executive, said: “The outlook for our sector looks positive in 2024 and beyond despite the challenging economic conditions at home and abroad which confirms that at times of uncertainty clients rely on trusted advisors and are looking to our sector for specialist expertise on the safe adoption of AI, new technology and for boosting productivity and cost efficiencies.
“Business confidence however thrives in stable political and economic environments and 2024 is a busy year for elections across the world which could impact the broader economic outlook and growth rates for our sector. As a country we should be proud of our position as a leading centre for professional services in the world and encouraged by the continued growth in one of our highest performing sectors,” she added.