Recovery in consultancies as fee income hits pre-crisis high
BRITAIN’S management consultants made as much money in 2011 as they did in the peak years before the financial crisis, industry data showed today.
The industry’s fee income grew by just under five per cent in 2011 and the number of fee-earning consultants increased by 10 per cent according to a report from the Management Consultancies Association (MCA), which estimates the industry is now worth £9bn.
Fees from the private sector rose 14 per cent in the year, up from 12 per cent in 2010, as the industry shifts away from public sector work.
The manufacturing sector helped bolster the rise with a 21 per cent jump in fees.
The ratio of private sector to public sector income now stands at 80 to 20, the MCA said, with more private growth expected in coming years.
“While most private sector clients are not confident enough to undertake major projects, they are often developing their capacities, processes and systems so they are ready for an upturn when it materialises,” said the MCA’s Alan Leaman.
“The UK consulting industry is both resilient and agile. It looks likely that the increased spending on consultancy services in 2011 by the private sector was an early sign of some improvement in wider economic prospects.”