Market Trends of Europe Management Consulting Services Industry
The Financial Consulting Segment is Expected to Witness Major Growth
- Management consulting is a crucial part of business since it allows firms to leverage consulting services for performance, efficiency, and profitability. The main solutions cover strategy across operations, finance, and human resources for businesses, organizations, and governments. Operations consulting services enhance financial efficiency. Consultancy activities in this segment vary from advisory services to hands-on implementation support for functions (e.g., corporate finance, divestments, and mergers and acquisition advisory).
- Companies require guidance in accounting, finance, insurance, and other aspects of finance. Firms deploy financial consultants to manage their investments, property holdings, and long-term financial strategies. Solutions are generally provided around risk management, government regulations, and the long-term viability of investment projects. Consultants analyze the risks and rewards of every investment proposal with the vision of maximizing the return on investment.
- Management consulting in Europe is fueled by many factors, which include technological advancement and the growing demand for business analytics. With the rise of adopting cloud computing services across industries, organizations want to leverage scalability, flexibility, and cost efficiency by deploying cloud platforms for IT infrastructure and applications. Management consulting services help organizations opt for the right strategy, which is beneficial as per the diverse needs of each organization.
- Finance organizations are growing and leveraging AI and ML, which can support them in accounting processes to investigate data, detect risks, and focus on cost efficiencies. Artificial intelligence and ML are transforming technologies, and every organization needs to invest to achieve outcomes. Generally, consulting firms can guide the organization in deploying technologies across the healthcare, finance, retail, and manufacturing industries. They can ensure the automation of non-necessary tasks and focus more on important organizational tasks.
- According to FEACO, the European panel management consulting turnover has increased at an average rate of 12.2%, higher than the country's respective GDP. Moreover, in the United Kingdom, Denmark, and Greece, the management consulting industry has performed better than its respective economies, at 17.2%, 18%, and 18.7%, respectively. This signifies the growing need for consulting services to solve firms' complex business problems.
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The DACH Region to Hold the Largest Market Share
- The countries under the DACH region include Germany (D), Austria (A), and Switzerland (CH). These countries have many consulting firms, including well-known international consultancies and local specialists. Some prominent consulting firms include Bain & Company, Kearney, McKinsey & Company, Boston Consulting Group, Alvarez & Marsal, Cordence Worldwide, Nextcontinent, and Nexe.
- These consulting firms advise and support their clients across any conceivable sector and area of expertise, meaning that companies in the private and public sectors face an enormous pool of consultants to choose from for their required services.
- Several consulting firms are getting bigger by opening offices in the area and buying other consulting firms to grow their services and presence there. As per data from the Feaco Survey, European panel management consulting employment increased on average by 7.0% during 2021 -2023. It experienced growth in management consulting employment CAGR in Italy, Denmark, the United Kingdom, and Greece at 11.5%, 14%, and 15%, respectively.
- The firms invest in strategic moves to diversify their portfolio and focus on expansion by deploying mergers and acquisition strategies. For instance, in December 2023, Elixirr announced the acquisition of Insigniam, a global consulting firm. This collaboration focussed on expanding the range of services for the clients, which enables Elixirr to partner with C-suite executives to build and implement a fit-for-21st-century agenda aligned to the client's customized needs.
- Moreover, there is a growing demand for operations management consulting due to the need to streamline supply chain and logistics procedures. Management consultants provide their expertise to organizations by helping them design new pricing strategies, sourcing key inputs, and heavily investing in sales execution for better profitability.
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