London: IT investment is keeping UK consulting's head above water in austere times, according to the Management Consultancies Association, MCA.
- IT Consulting in Construction and Transportation grows by 80 per cent, and
- Resources and energy grows by 39 per cent and manufacturing by a quarter
Changing technology is creating growth opportunities in new markets for management consultancies, according to Trends in UK consulting in times of austerity, a new report published today by the MCA.
Sectors such as construction, transportation and resources all saw high levels of growth in 2011 as a combination of new technology and cost pressures led to greater investment in IT management consulting advice.
The overall market for IT consulting grew by 5 per cent in 2011 but the fee income from the Construction and Transportation Sector grew by nearly 80 per cent on the previous year. Resources and energy grew by 39 per cent and manufacturing by a quarter. Changing technologies and customer demands are driving businesses to look for IT solutions to old problems.
The report also found that IT management consulting is now the second largest management consulting service line in financial services, a sector where the accurate processing and storage of data, the digitisation of services and data security are all critical to organisational success.
The public sector still accounts for a fifth (20 per cent) of IT management consulting fees. But 2011 saw the first drop in its spending on IT management consulting since 2007.
Alan Leaman, Chief Executive of the MCA said, "Even through a period of austerity, the demands of consumers and the ability of new technology to deliver better options for businesses mean that this is an important and growing market for management consultancy firms in the UK."
"The UK has a strong background in IT solutions for large multi-national business, and is a world leader in cyber security. This market creates a formidable platform to export our consultancy skills around the world."
The full report is available here.