Management consulting is doing well. The Economist posted this chart last week which shows that McKinsey, Bain, and BCG all grew by double digits in 2011. The data is a year old, but the revenue trend is clearly up. Bain grew by 17% YoY. The consulting outlook is good.
Companies are hiring. You know there is a war for talent when Bain posts this on facebook. They are looking to connect with people BEFORE they go to business school.
The Economist article is entertaining and worth reading here. A few points:
- Regulatory complexity is a boom for consultancies because clients need help deciphering and reacting to US healthcare reform and US financial reform
- The Big 3 strategy firms do lots of implementation, not just strategy
- The Big 4 accountancy firms do more overall consulting, although much of it involves FTE-heavy work like technology integration, or post-merger integration
- Lots of acquisitions of smaller firms (Deloitte acquires Mointor, PWC acquires PRTM). Roland Berger is looking for buyers
- McKinsey invests $400 million a year in knowledge management – both in technology and training for their consultants
A good place to read more: Where the Growth is in Management Consulting