Fuente:  http://www.consultant-news.com  Fecha: 19.06.2009

Consulting slowdown slowing down

sourceforconsulting.com carries out quarterly surveys of client buying trends, based on data from 32 large-scale organisations, including public sector entities, which on average spend between £50m and £75m per year on consultants.

The results show that the number of consulting clients expecting a decrease in consulting spend, averaged across all types of consulting firms, has fallen from 53% in the last quarter of 2008 to 42% in first quarter of 2009, while the number expecting an increase has grown from 15% to 24%. Or put another way, the number of respondents expecting their spend to stay the same or increase is now 58%.

In the public sector the number expecting no change or an increase in spend, averaged across all types of consulting firms, is significantly higher, at 80%.

Other findings:

The survey also indicates that IT consulting will be hit harder in the next six months than it has been in the recession to date, while demand for HR consulting will continue to be weak.

Financial management consulting (including due diligence and valuation, infrastructure/asset financing and M&A deal structuring) also looks particular weak, perhaps because there’s something of a hiatus while everybody waits for new financial regulation to come in, post-crisis.

Demand for operational improvement work still looks very strong.

Having spent the last two quarters discounting, consultants now appear to be saying there’s nothing left to discount. sourceforconsulting.com’s last report suggested that across all types of consulting firms an average 48% of respondents said they had experienced a willingness to discount (an increase of 14% on the previous quarter). That trend now seems to be slowing; the recent survey showed the figure falling back to 38%, which could be attributed to an increased confidence on the part of consultants in the state of the market, but more likely reflects the fact that consultants have discounted all they can (or at least all they’re willing to).

With consultants showing signs of having factored in as much discount as they’re prepared to, clients have turned their attention to their terms and conditions. 40% of respondents said they had changed terms in response to the downturn. Information about what exactly they have changed is a little harder to come by, but it’s safe to assume that they’re focussed on payment terms, Intellectual Property and in generally trying to shift as much risk as possible in the direction of the consultant.