Feaco Survey 2011-2012

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Survey of the European Management Consultancy

2011/2012

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December 2012

This report was prepared or FEACO by:

Dr. Jzse Por

gnes Miloveczgnes Kirly

Research Center on Management and Human Resource Management, University o Pcs, Pecs, Hungary

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Tbl Ctts

Introduction by the FEACO CHAIRMAN 5

Executive Summary 6

Key Figures, 20092012 61 S cope o the Market and Methodology 7

2 Europe Market Size, Forecast & Analysis 8

21 History and Projections 8

211 Size o the European MC-Market, 1998-2012 8

212 Evolution in % o the MC-Market Turnover, 1998-2012 8

213 MC Market as % o GDP, 1998-2012 9

214 Average Growth Rate by Size o Consultancy Company, 2006-2011 9

215 Size o the European MC Market (Total Turnover) by Country-Region, 2011 10

216 Breakdown o the European Consulting Market (Business & IT Consulting)

by Main Countries, 2010-2011 11

22 Analysis by Service Line 11

221 Composition o MC Market by Service line, 2011 12

222 Breakdown o Business Consulting Turnover, 2008-2011 13223 Breakdown o Consulting Turnover, 2011 13

224 Breakdown o Turnover rom other Services, 2011 14

23 Analysis by Client Sector 14

231 Composition o the MC Market by Client Sector, 2011 14

3 Selected European MC Markets 15

31 Analysis by Country 15

311 Growth Rates Breakdown by Country Region, 2011 15

312 Management Consulting as a Percentage o GDP, 2011 16

313 MC Turnover and GDP in Selected European Markets, 2011 16

314 Breakdown between Management Consultants and Support Staf, 2011 17

315 Key Figures o Selected European MC Markets 17

32 Analysis by Daily Rates 18

321 Average Daily Fee Rates o Selected European MC Markets, 2011 18322 Export o MC Services by Selected Countries, 2011 18

33 Analysis by Service Lines 19

331 MC Market Composition by Service Line (% o Turnover), 2011 19

332 MC Market Composition by Service Line (million ), 2011 20

333 Breakdown o MC in Selected Key Countries (million ), 2011 20

334 Breakdown o Business Consulting in Selected Key Countries (million ), 2011 21

34 Analysis by Client Sector 21

341 MC Market Composition by Client Sector (% o Turnover), 2011 21

342 MC Market Composition by Client Sector (million ), 2011 22

343 Key Market Composition by Client Sector 22

4 Main Trends in Management Consulting in 2011/2012 23

41 Austria 23

42 Croatia 23

43 Denmark 24

44 Finland 24

45 France 25

46 Germany 26

47 Greece 27

48 Hungary 28

49 Ireland 29

410 Italy 30

411 Latvia 31

412 Macedonia 31

413 Portugal 32

414 Romania 33

415 Slovenia 34

416 Spain 35417 Switzerland 36

418 United Kingdom 37

5 About FEACO, the European Federation o Management Consultancies Associations 38

6 Member Associations 39

7 Appendix Denitions 40

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5

Itducti by teaCo ChaIrman

It gives me great pleasure to introduce the2012 edition o the FEACO annual survey o the

European management consultancy market.

This edition spans a period marked by a verydicult economic state o aairs. Europe is acedwith many challenges: each and every memberstate is called on to maximize investments,reduce wasteulness and turn toward newmarkets, approaching them as growth actorsin a globalized arena. Every macro-sector o theeconomy urgently demands the denition andpursuit o clear objectives with targeted choicesand the ability to plan or the medium/long-term by valorizing strengths and minimizing

weaknesses.

Yet growth alone is not enough: we need to qualiywhat kind o growth. In a global environmentwhere China, India and other ar- easterneconomies are eager to grow ast and have alreadyconcentrated most o the worlds manuacturing intheir domestic territories, European growth cannotbe based rst and oremost on consumer goods.Investments should be ocused on sustainability,the environment, services and the maintenance oconsumer durables, innovation and creativity. Withan eye to social cohesion, without which positive

economic development cannot be guaranteed.In this perspective, boundaries between protand not-or-prot are becoming blurred; withexchanges o people, management and knowhow between the two sectors.

In this context, it behooves us to take a momentto envision a role or management consulting asa key contributor to change in this challenging

environment. Keeping the ocus on short terminterventions in eciency, eectiveness and

innovation while at the same time helping todevelop a long term vision and fexible strategies.

According to the FEACO report, orecasts or thecurrent year conrm the sectors positive trend,with a growth rate o + 5.8% o overall earningsthat is estimated to amount to 97.7 billion Eurosor 2012.What emerges rom the FEACO survey is adiversied portrait o the consulting industry.There are winners and losers among both largeenterprises and small specialized boutiques; whatmakes the dierence is a rms level o innovation

and readiness to respond to complex new needs.

Overall the growth o the consulting industry inEurope is contributing strongly to the nationalGDP o the economies in which it operates. Thisindicates that an investment in state o the artconsulting delivers value to the client and helps toimprove actual measurable perormance. In thissense, the tendency o public administrations tocut good consulting in response to the crisis maynot represent the wisest o decisions.

Ezio LattanzioFeaco Chairman

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6

excutiv SuyKy igus, 20092012

The results o the 2011-2012 FEACO survey, con-ducted in cooperation with the national European

management consulting associations, clearlyshow that in regard to the size o the consultingmarket last years orecast was moderate. The totalrevenues o Management Consulting in 2011 cul-minated in 92.4 billion Euros. Taking year 2010sdata into consideration revenues increased by6.6%. Compared to the past 2 years the tendencyo permanent growth can be realized; the size othe consulting market in 2011 has reached the

double as high level as in 2002, and a signicantcutback in number o total sta is characteristic or

2011. The distribution o revenues between thedierent key service lines o management consult-ing is presented in Table 1. The already remarkablerepresentation o Business Consulting among theconsulting services has urther strengthened. ITConsulting has shown 4% growth rates in 2011,Development & Integration elt by 9%, Outscouc-ing revenues declined by 3% and Other serviceshave emerged by 6%.

The aggregate data rom the European consultingindustry in 2009-2011 by country and by region ispresented in Table 2. According to this, signicantalteration cannot be seen compared to the previ-ous years. Germany remains the largest consult-ing market in Europe, ollowed by the United

Kingdom, Spain and France. Regarding the levelo regions, Western Europe is in rst place, ol-lowed by the Nordic Region, and also Central &Eastern Europes total turnover has decreased re-markably.

2008 2009 2010 2011 2012 est.

Market size 86.7 bn 83.7 bn 86.2 bn 92.4 bn 97.7 bn

Growth rate 8.2% -5% 2.9% 6.6% 5.8%

Total sta (thousand) 557 574 659 517 n.a.Breakdown o Key Services

Business Consulting 42% 43% 50% 52% n.a.

IT Consulting 14% 14% 15% 19% n.a.

Dvt & Integration 21% 18% 19% 10% n.a.

Outsourcing 17% 19% 12% 9% n.a.

Other services 6% 6% 4% 10% n.a.

2009 2010 2011

Total turnover in

billion

Business & IT

Consulting in

billion

Total turnover in

billion

Business & IT

Consulting in

billion

Total turnover in

billion

Business & IT

Consulting in

billion

Germany 25.8 17.7 27.9 19.4 29.6 20.6

United Kingdom 18.8 9.5 19 8.1 20** 13.6

Spain 9.6 1.8 9.9 1.7 9.9 1.7

France 7.7 6 8.8* 2.6 8.6 7.4

Western Europe 12.5 7 11.6 7.5 13.8 10.8

Nordic Region 7.2 4.3 6.8 4.4 7.7 6

Central &Eastern Europe

2.1 1.6 2 1.3 2.9 2.2

Western Europe: Austria, Belgium, Ireland, Italy, Netherlands, Portugal, SwitzerlandCentral & Eastern Europe: Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republik, Greece, Hungary, Poland, Romania, Slovenia, Latvia,

Macedonia

Nordic Region : Denmark, Finland, Norway, Sweden

* The correct total turnover data 2010 o France equals 8114 mrd

** Total turnover o MCA member organizations equals 5925 million , the total turnover data o 20 billion refers as an estimation or the whole

UK MC market

Table 1.

Key Figures 2008-2012

Table 2.

Key Figures in SelectedCountries and Regions

Executive SummaryKey Figures, 20092012

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1 Scp t mktd mtdlgy

The main goal o FEACO is to present objectivelyand as accurately as possible a picture o the

activity in the Management Consulting (MC)sector o Europe, aiming or the maximum level oreliability in the aggregation o the gures whichrepresent the dierent elements o the serviceswhich companies in the MC sector oer.

Findings shown here refect the aggregate dataand the level o detail as a result o the eorto all the companies, large and small, whoparticipated and continue to contribute to builda prosperous, competitive and exciting EuropeanMC Market. The FEACO member associations andthe companies provide a broad spectrum o MCservices. Depending on each national market,the range and type o services oered maybe at dierent levels o maturity. The array oservices the management consultancies oer isdynamic and continuously evolving. Dening theramework o activity o our sector is thereorenot an easy task, mainly because it concerns abasket o services that are quite dierent in thevarious countries.

From that perspective and with the objective oimproving our report, FEACO proposed in 2005 anew denition o the scope o services oered bymanagement consultancies in Europe and a newway o segmenting these services. This exerciseresulted in the ollowing division o the mainservices:

Consulting, which we divide into BusinessConsulting and IT Consulting,

Development and Systems Integration(excluding sotware development),

Outsourcing o value added services, Other services.

These segments are described in detail in thesubsection Analysis by Service Line. The new

ramework implied a change in methodologyor the collection and aggregation o thequantitative and qualitative data, which areprovided by the companies. The methodologyconsists basically in the collection o the data byour member associations on the MC sector viathe aggregation o the gures rom the individualconsulting companies. In 2007, FEACO decided

to distinguish between associations with an in-depth knowledge o their domestic market and

associations rom countries whose markets areless well-known or well-measured. As a result,quantitative data were collected on two levels:

Key countries were asked to provide:

Volume o turnover or the year 2011 Data on stang Business volume per service area Business volume per major client sector Daily ee rates or 2011 General orecasts or 2012

Non key countries were asked to provide:

Volume o turnover or the year 2011 Data on stang General orecasts or 2012

In parallel, qualitative data were solicited in aseparate questionnaire on companies views onthe development and the uture o the MC sectorin selected areas o activity. The results o it aresummarised in the section o the report on trendsin the MC sector. The MC sector is dynamic asevery year new consulting companies appear,while others merge (which give rise to spin-os)or reorganize themselves. Because the data areprovided on a voluntary basis, the sample ocompanies surveyed in each European countryvaries rom year to year. The latest edition o thesurvey allows us to redene retroactively some othe data obtained in previous years.

This year 18 countries contributed with their eortto the nal FEACO report 2011/2012. Out o the18 Full Members 12 members (Austria, Croatia,Finland, France, Greece, Hungary, Italy, Portugal,Romania, Slovenia, Spain, Switzerland) deliveredanswers and Denmark, Germany, Ireland,Latvia, Macedonia and the United Kingdom alsoparticipated in the survey. The FEACO Report

2011/2012 is considered to be representative,because the countries delivering data coverover 80% o the total European ManagementConsulting Market. Data were evaluated ona statistical basis, using data and varianceanalysis to prove the reliability o the results. Theestimated data were calculated on the basis o themedian results o the various indicators.

1 Scpe the Marketand Methdlgy

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2 eup mkt Siz,cst & alysis

Ater a slight decline in 2009, the industryexperienced a moderate growth in 2010, butnow in 2011 an incremental growth period hasbeen started relying on the gures o 2011 totalturnover data and 2012 orecast. In 2011 the

volume o the MC Market has doubled comparedto the total turnover level in 2002. According toestimates, the MC sector is orecasting an almost6% growth or 2012 by targeting to reach 97.7billion Euros in 2012.

In Figure 2 a similar optimistic tendency can bediscerned about the evolution o the MC marketturnover in percentage. Until 2004, changesin the MC market turnover can be describedas showing a slow but stable growth. In 2005revenue signicantly increased starting a robustgrowth trend. This lasted until 2008, when theincrease reached 519% compared to the data o

the 1996 base year. A moderate setback could

be experienced in 2009, but a new developmentphase has begun in 2010 as the MC marketproduced 516% compared to the base year. In2011 a signicant evolution o the MC marketturnover can be realized representing that thetotal turnover in 2011 peaked the 556% comparedto the total revenues in base year o 1996 (100%).The anticipations or 2012 mirror urther increase

in revenues.

2 Eurpe Market Size,Frecast & Analysis

Figure 2.

Evolution in % o the MC Market

Turnover, 1998-2012

Figure 1.

Size o the European MC Market,1998-2012

24.5

36

42.5

47.546.5 47.5

48.5

64.5

74

81

86.783.7

-10

0

10

20

30

40

50

60

70

80

90

100

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

VolumeoftheMCMarket(billion)

86.2

2011 2012

(est.)

92.4

97.7

Growth rate (%)

15 15.918

11.5

-2

3.5 3.7

1410.7 9.5

8.2

-5

2.9

6.6 5.8

0

100

200

300

400

500

600

700

199 8 1 999 2000 2001 200 2 20 03 2 004 2005 200 6 20 07 2 008 2 009 2010

MCMarket(1996=base100)

Year

217256

286 280 286 292

389

446489

519 502 516

149

2011 2012

(est.)

553

585

21 History and Projections

211 Size o the European MC Market, 1998-2012

212 Evolution in % o the MC Market Turnover, 1998-2012

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9

As can be seen in Figure 3, changes in the MCMarket as % o European GDP (Source: Eurostat)show a 0.06% increase rom 2010 to 2011, whichindicates that consultancy industry has movedon the way o progress. As in 2003-2004 and

rom 2009 to 2010 a similar negative changetook place and now it seems that both periodhas been ollowed by an outstanding increase;or 2012 the expectations show the highest levelo revenues.

In 2011 almost a 10% average growth rate o largesized MC-rms was realized and, the average

growth rate o rms in both categories mediumsized and small sized MC-rms reached 6.5%.


Figure 3.

MC Market as % o GDP,

1998-2012

Figure 4.Average Growth Rate by Size o

Consultancy Company, 2006-2011

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.8

0.7

%G

DP

0.24

0.36

0.53

0.580.55 0.56 0.55

0.610.63 0.64

0.650.68 0.67

0.73 0.75

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

(est.)Year

0%

-5%

-10%

5%

10%

15%

20%

25%

Year

Large sized MC-rms

(TOP 20 MC-rms)

Medium sized MC-rms

( 500.000 turnover)

Small sized MC-rms

(< 500.000 turnover)

9%

15%

4%

2006

5%

20%

10%

2007

6%

11%

4%

2008 2009

-6% -6%

-2% -2%-3%

1%

2010

9.6%

6.5% 6.5%

2011

213 MC Market as % o GDP, 1998-2012

214 Average Growth Rate by Size o Consultancy Company, 2006-2011

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10

In 2011 the position o each country and regionremained quite stable. Based on total turnover ineach o the markets, Germany is still the largestEuropean MC Market with 33% o the total, ol-

lowed by the United Kingdom at 22%. Spain andFrance are ranked third and ourth, with their re-spective 12% and 10%.

In 2011 FEACO developed a new instrument orcomparative analysis the size o the EuropeanBusiness Consulting market. Since in most othe countries Business Consulting is the lead-ing service line within Management Consulting,it can be a useul tool or comparison-making.

The ranking o countries and regions remainedunchanged rom this aspect: Germany, UnitedKingdom, Nordic Region, France, Italy, Centraland Eastern Europe, Austria, Switzerland, Spain,Portugal and Greece.


Figure 5a.

Size o the European MC Market

(Total Turnover)by Country-Region, 2011

Figure 5b.Size o the European BC Market

(Total Turnover)

by Country-Region, 2011

33% Germany

22%

United Kingdom

Spain

12%

France 10%

Central & Eastern Europe 2.6%

Nordic Region9%

Italy 5%

3%

Portugal 1.5%

Greece 0.2%Switzerland

Austria

1.4%

36% Germany

20%

United Kingdom

Nordic Region

13.5%

France 1.5%

Italy

5.5%

Austria 3.8%

Portugal 1.1%

Central & Eastern Europe 4.9%

Switzerland 2.1%

Greece 0.3%

Spain 1.3%

215 Size o European MC Market (Total Turnover)by Country-Region, 2011

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For the our main countries covering more than75% o the total MC market, we present thedistribution o the European Consulting Market(Business & IT Consulting) in Figure 6. There are

no signicant changes that can be seen, thoughGermany lost respectively 3% to the benet oFrance. The rate or United Kingdom and Spainremained unchanged.

22 Analysis by Service Line

According to the new segmentation introducedby FEACO in 2005, the MC market is divided intoour segments: Consulting, Development and In-tegration, Outsourcing and Other services. TheConsulting segment is subsequently divided intotwo sub-segments: Business Consulting (BC) andInormation Technology Consulting (ITC).

1. Consulting. These services help private andpublic organisations to analyse and redene theirstrategies, to improve the eciency o their busi-ness operations and to optimize their technical

and human resources.

1a. Business Consulting (BC), which includes: Strategy Consulting (SC), which targets the

improvement o the long-term, strategichealth o a company: strategic planningdevelopment; mergers & acquisitions; sales;marketing; corporate communication;nancial advisory; HR strategy;

Organisation/Operation Management(OM) aims at the integration o businesssolutions through Business Process Re-

engineering (BPR); customer/supplierrelations management (CRM); turnaround/cost reduction and purchasing & supplymanagement as well as advise onoutsourcing;

Project Management (PM); The application oknowledge, skills, tools and techniques to abroad range o activities in order to meet therequirements o a particular project;

Change Management (CM), this consistso services which, on top o any other typeo consulting service, help an organisationdeal with the eects that change has on thehuman element o the organisation;

Human Resources Consulting (HR): Consulting

services which target the improvemento the people element o an organisationthrough perormance measurement andmanagement, reorganisation o benets,compensations and retirement schemes, HRstrategy and marketing, the development otalent strategies and executive coaching.

1b. Inormation Technology Consulting (ITC)helps organisations to evaluate their IT strategieswith the objective o aligning technology with thebusiness process. These services include strategicplanning and conceptions, operations and imple-

mentations.


Figure 6.

Breakdown o the EuropeanConsulting Market

(Business&IT Consulting)

by Main Countries, 2010-2011

23%

19%

5%

53%

2011

23%

16%

5%

56%

2010

Germany United Kingdom France Spain

Year

216 Breakdown o the European Consulting Market(Business & IT Consulting) by Main Countries, 2010-2011

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Business Consulting has been continued increasingby 2% points and it now accounts or 52% o the MCMarket in 2011. Another interesting realignment tookplace in 2010: Development & Integration (19%) hasovertaken IT Consulting (15%), but in 2011 the ratios

have reversed: Development & Integration ell to 10%and IT Consulting grew to 19%. Outsourcing lost 3%in 2011. Other Services won on 6% point and now itsshare stands at 10%.


52%

Business Consulting

19%IT Consulting

Development

& Integration

10%

Outsourcing

9%

Other Services

10%

Figure 7.Breakdown o Turnover

by Service Line, 2011

221 Composition o MC Market by Service Line, 2011

2. Development and Integration that concerns:

the development o applications (excludingsotware); the creation o new unctionalities through,

oten tailored, process developments.

Usually these developments integrate or uniteinternal or external business processes and caninvolve a conversion o applications so that theycan be used or dierent platorms or conceptions,

the design o services which integrateapplications which were created in dierentexisting IT applications or inrastructures(systems integration -development);

the deployment and integration oapplications;

the implementation o new applications orinrastructures, which reers to the instal-lation o hardware and/or sotware, theirconguration or adaptation and the testingo their interoperability; and o serviceswhich integrate applications which werecreated in dierent existing IT applications orinrastructures and the management thereo(systems integration).

3. Outsourcing, which consists o three types

o activities:

IT management services; among these areservices or the operation o inrastructures(operation o systems, administration andsecurity, ollow up o cost-eectiveness,conguration management, management otechnology, etc.) applications management,and help desk management;

Applied Management Services (AMS); thisconcerns the outsourcing o the developmentand implementation o support servicesor hardware, applications, CRM andinrastructures (tools or the developmento applications and middleware, as wellas sotware or inormation management,storage or systems and networks);

Business Process Outsourcing (BPO); thisservice supposes the externalisation o acomplete business process.

4. Other Services, which consist o a variety ooerings provided by many MC companies thatare generally complementary to Consulting, De-velopment and Integration, and Outsourcing. Cat-egories here include: Training, Engineering Con-sulting, Outplacement, Executive Selection andRecruitment and Audit and Accounting.

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From 2010 to 2011 three lines o BusinessConsulting declined and that was Strategy(rom 29% in 2010 to 26% in 2011), OperationsManagement Strategy (rom 37% in 2010 to 34%in 2011) and Change Management Strategy (rom

14% in 2010 to 13% in 2011). All other service lineseither preserved their shares o BC turnover suchas HR Consulting with its 11%, or increased theirshares o BC turnover as was the case or ProjectManagement (rom 9% to 16%).

Figure 9 shows that in the breakdown oconsulting turnover there was a slight changein 2011 compared to 2010. Business Consultingnow covers 80% o consulting turnover and IT

Consulting now stands at 20% share. Nevertheless,a slow but continuous tendency can be seen rom2007 onward, with the role o Business Consultingstrengthening at the expense o IT Consulting.


IT Consulting

80% Business Consulting

20%

Figure 8.

Breakdown o Business Consulting

Turnover, 2008-2011

2007

43%

12%

4%

11%

30%

2008

33%

21%

10%

9%

27%

2009

37%

18%

11%

11%

24%

2010

37%

9%

14%

11%

29%

2011

34%

16%

13%

11%

26%

Strategy Organisation/Operations Management Project Management Change Management HR Consulting

Year

Figure 9.

Breakdown o Consulting Turnover,

2011

223 Breakdown o Consulting Turnover, 2011

222 Breakdown o Business Consulting Turnover, 2008-2011

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14

Banking & Insurance

Public sector

Energy & Utilities

3%

9%

5%

4%

Industry

Aerospace & Defense 1%

Wholesale & Retail

14%

26%

23%

Transport & Travel

Healthcare (pharmaceuticals & biotech included)

Other

10%Telecoms & Media

5%


Figure 11.

Composition o the MC Market

by Client Sector, 2011

In 2011 Banking & Insurance could hold itsleading position with its 26% among the variousclient sectors. Industry and Public Sector wereclosely ollowing each other in 2010, but in 2011Industry with 23% can again be dierentiated,

while the demand arising rom the PublicSector decreased almost by 5% to 14% in 2011.Although all o the other sectors remained below10%, the growing role o Telecoms&Media andEnergy & Utilities can be identied also in 2011.

23 Analysis by Client Sector

231 Composition o the MC Market by Client Sector, 2011

In 2011 Executive Selection/Recruitment/Out-placement lost 49% compared to last years data,however, Training reached the level o 22%. Auditincreased its share with 20%, and Other Services

recorded respectively 3% growth compared to2010. Engineering now stands on the same levelas it did in 2010, while Market Surveys rose by 4%o its share by 2011.

39%

Training

22%

5%

Audit

Other 31%

Executive Selection/Recruitment/Outplacement 2%

Engineering 1%

Market Surveys

224 Breakdown o Turnover rom Other Services, 2011

Figure 10.

Breakdown o Turnover rom

Other Services, 2011

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3 Selected EurpeanMC Markets3 Slctd eup mC mkts

Figure 12 presents the change in the size o MCMarkets in 17 European countries one by one. Thenegative extreme o 2011 shows much more mod-erate numbers than last years extreme in 2010a 12% decline was experienced in Hungary, whilein 2011 the highest decline occurred in Slovenia at3.2%. From the 17 European countries only 2 ex-perienced setbacks while 14 countries reported in-creases and Portugal stagnated. The 14 countrieswith their consecutive growth rates are Romania

(2%), Macedonia (2.7%), Denmark (4%), Italy(4.7%), the United Kingdom (5%), France (6%), Ire-land (8%), Latvia (8%), Switzerland (9.1%), Austria(9.1%), Hungary (9.3%), Germany (9.5%), then Fin-land ollows with an extremely high growth ratewhich accounts or 14%, however, this years peakwas reached by Croatia where the market experi-enced a 25.3% growth. The only country not men-tioned yet is Greece which got through a modestdecline (-0.6%) in 2011.

Compared to last years expectations, several coun-tries estimated their situations in 2010 in a realisticway; only one country was too optimistic and mosto the countries underestimated their growth rates. Itis hard to make comparative analysis with last yearsdata as in the 2010/2011 survey only six countriesprovided estimations or 2011. Greece anticipateda 3% decline and experienced only a 0.6% setback.Ireland expected stagnation; however, there werean 8% growth in real. Romania made a realistic esti-mation with a 2% growth which was implemented.

France estimated its growth rate exactly as well, theMC market could grow by 6% in 2011. Switzerlandalso anticipated a 6% growth, but this proved to beand underestimation, as the Swiss MC market pre-sented a 9.1% growth. Last year Italy was the most

optimistic regarding their ollowing year with an es-timated growth rate o 9.4, there was a more moder-ate increase in the market, the perormance o theItalian MC market showed 4.7% growth.For 2012, nine countries delivered their estimations,which can be seen on Figure 13. According to this, itcan be stated that eight countries expect dierentlevels o growth, the most optimistic concerning2012 is Romania with an anticipated 13% growthrate, ollowed by Hungary (10%), Ireland (9%), Latvia(6%), Croatia (6%), Austria (5.6%), Switzerland (4%)

and Italy (1.3%). From the countries that providedestimations or 2012 only one (Greece) orecasted a3% decline just as last year. So the overall picture oexpectations rom the participating countries can bestated as optimistic in regard to the year 2012.

-5%

0%

5%

10%

15%

20%

25%

30%

Slovenia

Greece

Portugal

Romania

Macedonia

Denmark

Italy

UnitedKingdom

France

Ireland

Latvia

Switzerland

Austria

Hungary

Germany

Finland

Croatia

-3.2%

-0.6% -0.0%

2.0%2.7%

4.0%4.7% 5.0%

6.0%

8.0% 8.0%9 .1 % 9 .1 % 9.3% 9.5%

14.0%

25.3%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%

-3.0%

Greece Italy Switzerland Austria Croatia Latvia Ireland Hungary Romania

1.3%

4.0%

5.6%6.0%

9.0%

13.0%

10.0%

6.0%

Figure 12.

Growth Rates Breakdownby Country, 2011

Figure 13.Growth Rates Estimations

Breakdown by Country, 2012

31 Analysis by Country

311 Growth Rates Breakdown by Country Region, 2011

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The contribution o the MC sector relative tothe listed countries GDP can be seen in Figure14. In 2011 three countries recorded the ratioo MC to GDP reaching in excess o 1%, namelyAustria (1.04%), the United Kingdom (1.14%) andGermany (1.15%). Two other countries are nearing

the 0.8% to 1% range; these are Sweden and Spain.Seven countries belong to the third percentagerange between 0.4% and 0.8%. Finally, there areeleven countries in the ourth cluster between0.2% and 0.4% and only three countries are inthe last category at below 0.2 %.

Table 3 reveals the main economic characteristicso the selected European MC markets, listingthe GDP data and growth and some ratios oMC market rms relative to the GDP. There is nosignicant relation ound between GDP growth

and MC growth, with wide variations in this ratiorom country to country. Such dierences canbe attributed to divergent economic and non-economic, including prevalence and popularity oMC in the client base.

Figure 14.

Management Consulting as a

Percentage o GDP, 2011

Table 3.

MC Turnover and GDP inSelected European Markets, 2011

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

Percentage

Country

PL GR HR IT NO HU CH BU RO MKD CY CZ IE BE LA FR NL FI PO SI DK SE ES AT UK DE

0.09% 0.10%0.13%

0.20% 0.21%0.24% 0.24% 0.25%

0.28% 0.28%0.31% 0.32%

0.34% 0.35%

0.42% 0.43%

0.55%

0.69%0.72% 0.73%

0.75%

0.90%0.94%

1.04%

1.14% 1.15%

CountryGDP (million )

2011

Share o total economy

o countries considered

GDP growth

2011

MC growth

2011

Total turnover o

MC rms 2011

Total turnover

o MC rms

as % o GDP

Germany 2 592 600 19.4% 3% 9.5% 29750 1.15%

France 1 996 583 15% 1.7% 6% 8601 0.43%

United Kingdom 1 750 395 13.1% 0.9% 5% 20000 1.14%

Italy 1 580 220 11.8% 0.4% 4.7% 3187 0.20%

Spain 1 063 355 8% 0.4% n.a. 9995 0.94%

Netherlands 601 973 4.5% 1% n.a. 3300 0.55%

Switzerland 476 054 3.6% 1.9% 9.1% 1152 0.24%

Belgium 369 836 2.8% 1.8% n.a. 1300 0.35%

Poland 369 666 2.8% 4.3% n.a. 330 0.09%

Sweden 387 886 2.9% 3.9% n.a. 3500 0.90%

Norway 349 077 2.6% 1.4% n.a. 750 0.21%

Austria 300 712 2.3% 2.7% 9.1% 3130 1.04%

Denmark 239 245 1.8% 0.8% n.a. 1786 0.75%

Greece 208 532 1.6% -7.1% -0.6% 206.8 0.10%

Finland 189 368 1.4% 2.7% 14% 1302 0.69%

Portugal 170 909 1.3% -1.7% stable 1230 0.72%

Ireland 158 993 1.2% 1.4% 8% 538 0.34%

Czech Republic 156 217 1.2% 1.9% n.a. 495 0.32%

Romania 136 480 1% 2.5% 2% 378 0.28%

Hungary 99 829 0.7% 1.6% 9.3% 235 0.24%

Croatia 44 893 0.3% 0% 25.3% 605 0.13%

Bulgaria 38 483 0.3% 1.7% n.a. 95 0.25%

Slovenia 36 172 0.3% 0.6% -3.2% 262.3 0.73%Cyprus 17 761 0.1% 0.5% n.a. 55 0.31%

Macedonia 7 313 0.1% 3% 2.1% 205 2.80%

Latvia 20 211 0.2% 5.5% 8% 85 0.42%

Total o selectedcountries

13 335 238 100% 92 473

* Figures edited in italic represent estimated data. Source o estimations: applying the trend gained rom previous years Feaco Reports data.

3 Selected EurpeanMC Markets

312 Management Consulting as a Percentage o GDP, 2011

313 MC Turnover and GDP in Selected European Markets, 2011

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Overall or the total market, the ratio o Consult-ants to Support Sta was 74.8% to 25.2% in 2011.This result is close to the distribution o 2010, butdiers rom that o the previous years when theratio stood at 82% to 18%. This tendency, whichstarted last year, seems to be not only a one-yearinterval, but a longer term change. At the twoextremes, are the United Kingdom and Hungary

both with 92% Consultants to 8% Support Sta,while at the other end stand Croatia and Austriawith a consecutive rate o only 25% and 37% Con-sultants.Tradition, current preerences, compensation pat-terns, diverse client base and other actors explainsome o these sharp dierences among the vari-ous nations.

The country rankings have remained practicallythe same since 2005, when Germany achieved therst position overtaking the United Kingdom.

In 2011 the median turnover per employee or thelisted countries equals 126 294 in comparison to2010, which stood at 106 902. The mean was 148 184 in 2011 (2010: 128 033).

The countries are grouped in the ollowing turno-ver per employee categories (the same clusters areused rom 2009):

A turnover per employee rate under 60 000 canbe ound in 4 countries: Romania, Hungary, theCzech Republic and Poland.

In 2011 turnover per employee rate was between60 000 and 150 000 in 11 countries: Bulgaria, Cy-prus, Portugal, Spain, Finland, Slovenia, Italy, Croa-tia, Greece, Ireland and Denmark.

In 2011 the turnover per employee rate exceeded150 000 in 11 countries Belgium, Netherlands,Macedonia, France, Norway, Sweden, Latvia, Aus-tria, Switzerland, Germany and the United King-dom. It is worth to emphasize the outlier rate othe UK, which is numerically distant rom the resto the data, an extremely high 584 830 .

Germany Spain Austria France UK Italy

Consultants 79% n.a. 37% n.a. 92% 83%

Support Sta 21% n.a. 63% n.a. 8% 17%

Total sta 177 000 128 000 102 584 49 000 34 198 33 271

Portugal Finland Denmark Romania Croatia Hungary

Consultants 60% 65% n.a. 80% 25% 92%

Support Sta 40% 35% n.a. 20% 75% 8%

Total sta 16 040 15 699 13 485 10 000 5 331 4 580

Switzerland Ireland Slovenia Greece Latavia

Consultants 87% 89% 88% 88% 75%

Support Sta 13% 11% 12% 12% 25%

Total sta 4 530 4 150 3 066 1 682 409

Table 4.

Breakdown between Management

Consultants and Support Staf, 2011


314 Breakdown between Management Consultants and Support Staf,2011

315 Key Figures o Selected European MC Markets

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Daily ee rates are the most dicult to obtain in anygiven year. In 2008 only our countries (Greece, Fin-land, France and Germany) could provide these data,in 2009 this number increased to six (Croatia, France,Germany, Greece, Hungary and Switzerland; in 2010

also six countries were willing to provide these data,however, not the same ones as in the previous year.In 2010 Finland, Greece, Hungary, Italy, Romaniaand Switzerland have given data on daily rates oManagement Consulting. In 2011 the willingness toshare this kind o sensitive inormation urther en-

hanced and now we have eight countries data ondaily ee rates (Switzerland, Finland, Italy, Croatia,Hungary, Latvia, Greece and Macedonia).These eight countries can be urther classied intotwo groups: Macedonia, Hungary, Greece and Lat-via belong to one group with lower level o dailyee rates (150 - 400 ) while the second group in-cludes Croatia, Italy, Finland and Switzerland (700 - 1250 ).

The average market share or Export o MC Ser-vices in the selected 15 countries is 14.3% which islower than last year s corresponding data (16.1%).Regarding total exports, the extremes are Hungary

with its 24.2% share and Macedonia which exportsonly 2%. I we separate export activity consideringits destination, Greece, Hungary, Slovenia, Finland,Switzerland, Austria, Croatia, Germany, Romania,


Table 6.Average Daily Fee Rates o Selected

European MC Markets, 2011

32 Analysis by Daily Rates321 Average Daily Fee Rates o Selected European MC Markets, 2011

322 Export o MC Services by Selected Countries, 2010

CountryTotal turnover o MC

rms 2011 (million )

Total turnover o MC

rms 2010 (million )

Share o MC market in

Europe 2011

Total staf

2011

Turnover per

employee ()

Germany 29750 27900 32.2% 112 600 264 210

United Kingdom 20000 19009 21.6% 34 198 584 830

Spain 9995 9903 10.8% 128 000 78 086

France 8601 8114 9.3% 49 000 175 531

Sweden 3500 3300 3.8% 17 000 205 882

Netherlands 3300 3120 3.6% 20 000 165 000

Italy 3187 3044 3.4% 33 271 95 789

Denmark 1786 1717 1.9% 13 485 132 443

Austria 3130 2870 3.4% 13 908 225 050

Portugal 1230 1236 1.3% 16 040 76 683

Belgium 1300 1200 1.4% 8 000 162 500

Finland 1302 1142 1.4% 15 669 83 094

Switzerland 1152 1056 1.2% 4 530 254 305

Norway 750 700 0.8% 4 000 187 500

Czech Republic 495 465 0.5% 9 000 55 000Ireland 538 438 0.6% 4 150 129 639

Romania 378 370 0.4% 10 000 37 800

Poland 330 310 0.4% 6 000 55 000

Slovenia 262.3 271.1 0.3% 3 066 85 551

Hungary 235 215 0.3% 4 580 51 310

Greece 206.8 208 0.2% 1 682 122 949

Croatia 605 483 0.7% 5 331 113 487

Bulgaria 95 90 0.1% 1 500 63 333

Macedonia 205.5 n.a. 0.2% 1 200 171 250

Latvia 85 n.a. 0.1% 409 207 824

Cyprus 55 50 0.1% 800 68 750

Total o selectedcountries

92 474 87 498 100% 517 419 148 184

* Figures edited in italic represent estimated data. Source o estimations: applying the trend gained rom previous years Feaco Reports data.

Table 5.

Key Figures o Selected European

MC Markets

Daily rates o Management Consulting

Switzerland 1 250

Finland 870

Italy 721

Croatia 700

Hungary 400

Latvia 400

Greece 380

Macedonia 150

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There is still a remarkable dominance o BusinessConsulting within Management Consulting with theshare o BC within MC at more than 50% in almostall examined countries. Last year a new tendencystarted with BC being still higher than 50% in eighto the twelve selected countries, but other majorservice lines also became signicant. With 17 coun-

tries involved this year, Table 7. presents the distri-butions between the dierent service lines withincountries. IT Consulting was the most determinantin Macedonia and in Latvia, while Development &Integration was dominant in Spain closely ollowedby Outsourcing. Other services were the most im-portant in Croatia and Portugal.

Portugal, France, Ireland, Italy, Latvia and Mac-edonia remained under 5% exporting to countries

outside Europe and it is Germany which exportedthe most at 9.2%. For countries inside Europe, thegreatest exporter is Hungary with its 19,9% andMacedonia is at the other end not exporting MC

services within European countries at all. Nine othe teen countries export more to European

countries, ve countries export more to countriesoutside Europe and Finland is the only countrywhich equally provided MC services into countrieswithin and outside Europe.


0

5

10

15

20

25

Export

Hungary Finland Greece SpainSwitzer-

landAustria Slovenia Germany Portugal Romania France Italy UK Ireland Ireland

Inside Europe 19.9% 16.3% 10.5% 9% 14% 13.3% 13% 6.3% 10.5% 4.3% 7% 4.5% 8% 3% 0%

Outside Europe 4.3% 4.3% 9% 9% 4% 3.8% 3% 9.2% 3% 8% 4% 5.8% 2% 4% 2%

Total 24.2% 20.6% 19.5% 18% 18% 17.1% 16% 15.5% 13.5% 12.3% 11% 10.3% 10% 7% 2%

G erm any U K S pa in F ra nce I ta ly Au st ri a D en ma rk Fi nl an d Po rt ug al S wi tz erl an d Cr oa ti a I re la nd S lov en ia H un ga ry G re ec eMace-donia

Latvia

Total turnover(million )

29 750 20 000 9 995 8 601 3 187 3 130 1 786 1 302 1 230 1 152 605 538 262.3 235 206.8 205.5 85

Major service lines (%)

BusinessConsulting (BC)

54% 52.5% 6% 78.2%64.2%

66.6% 32.6% 61.4% 44.4% 19% 55.3% 69.5% 50% 78.5% 30% 22%

IT Consulting 15.5% 16.1% 12% 8.8% 15.2% 4.1% 7.6% n.a. 21% 17.4% 12% 36% 3.2% 48% 44%

Development &Integration

19.5% 0% 42% 1% 4.1% 0% 9.3% 11.6% n.a. 15% 7.5% 6% 6% 2.7% 7% 4%

Outsourcing 6.3% 9.4% 40% 11% 1.5% 0% 1.4% 6.4% n.a. 15% 7.7% 2% 3% 1.8% 5% 13%

Other services 4.8% 0% 0% 1% 15.9% 18.2% 8.8% 13% 55.6% 30% 12.1% 11% 5% 13.8% 10% 35%

Total 100% 78% 100% 100% 100% 100% 56.2% 100% 100% 0% 100% 100% 100% 100% 100% 100%

BC Details

Strategy 16.7% 8.6% 3% 9% 22% 34.2% 9.4% 21.8% 8% 27% 3% 13.8% 21.5% 14% 19% 4% 3%

Organisation/OperationsManagement

16.3% 13.4% 3%

41.2%

18% 13.3% 12.4% 15.6% 32%73% includingIT Consulting

6% 16.2% 30% 19% 20% 4% 3%

ChangeManagement

7.2% 18.7% 0% n.a. 6.3% 4.7% 2.2% n.a. 3% 10.6% 5% 11% 35% 10% 8%

ProjectManagement

6.4% 3.8% 0% 24.5% n.a. 2.6% 12.2% n.a. n.a. 3% 6.3% 6.5% 2% 2% 5% 4%

HR Consulting 7.4% 8% 0% 3.5% 19.1% 1.8% 7.1% 2.2% n.a. 4% 8.4% 6.5% 4% 2.5% 7% 4%

Total 54% 52.5% 6% 78.2% 66.6% 61.4% 44.4% n.a. 19% 55.3% 69.5% 50% 78.5% 30%

Figure 15.

Export o MC Services by Selected

Countries, 2011

Table 7.

MC Market Composition byService Line (% o Turnover), 2011

33 Analysis by Service Lines331 MC Market Composition by Service Line (% o Turnover), 2011

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The breakdown o MC in our key countries ispresented in Figure 16. In Business Consulting wend Germany dominating the market ollowedby the UK; the next two are France and Spain.Regarding Development and Integration, we nd

Germany in rst place, ollowed by the UK, thenSpain and France. The turnover o IT Consulting isthe highest in Germany, closely ollowed by Spain;this is a change compared to last year. Outsourcingproved to be a signicant service line in Spain.


Figure 16.Breakdown o MC in Selected Key

Countries (million ), 2011

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

Totalturnoverinmillion

Germany United Kingdom Spain France

Other Services 1 413 n.a. n.a. 86

Outsourcing 1 859 1 880 3 998 946

IT Consulting 5 801 n.a. 4 198 86

Development & Integration 4 611 3 220 1 199 757

Business Consulting (BC) 20 600 10 500 600 6 726

Total 34 285 15 600 9 995 8 601

333 Breakdown o MC in Selected Key Countries (million ), 2011

332 MC Market Composition by Service Line (million ), 2011

Table 8.MC Market Composition by

Service Line (million ), 2011

Ge rm any U K S pa in Fr anc e I ta ly A us tr ia D en ma rk Fi nl an d Po rt ug al Sw it ze rl an d C ro at ia I re la nd S lov en ia H un ga ry G re ec e

Mace-

donia Latvia

Total turnover(million )

29 750 20 000 9 995 8 601 3 187 3 130 1 786 1 302 1 230 1 152 605 538 262.3 235 206.8 205.5 85

Major service lines (%)

BusinessConsulting (BC)

20 600 10 500 600 6 7262 046

2 085 582 799 546 115 298 182 118 162 62 19

IT Consult ing 4 611 3 220 1 199 757 476 73 99 n.a. 127 94 31 85 7 99 37

Development &Integration

5 801 n.a. 4 198 86 392 - 166 151 n.a. 91 40 16 14 6 14 3

Outsourcing 1 859 1 880 3 998 946 382 - 25 83 n.a. 91 41 5 7 4 10 11

Other services 1 413 n.a. n.a. 86 367 570 157 169 684 182 65 29 12 29 21 30

Tot al 3 4 2 85 1 5 6 00 9 99 5 8 60 1 3 1 87 3 1 30 1 0 04 1 30 2 1 2 30 6 05 5 38 2 64 2 35 2 06 .8 20 5.5 1 00

BC Details

Strategy 4 968 1 720 300 774 701 1 070 1 68 284 98 0 18 74 56 33 39 8 3

Organisation/OperationsManagement

4 849 2 680 300

3 621

574 0 222 203 39473%

including ITConsulting

36 87 79 45 41 8 3

Change

Management 2 142 3 740 n.a. n .a. n .a. 113 61 27 n.a. 18 57 13 26 72 21 7

ProjectManagement

1 904 760 n.a. 2 106 n.a. n .a. 46 159 n.a. n .a. 18 34 17 5 4 10 3

H R Co ns ult ing 2 2 02 1 6 00 n. a. 3 00 n .a . 0 3 3 9 2 2 7 n. a. 2 4 4 5 1 7 9 5 1 4 3

Tota l 16 065 10 500 600 6 801 1 27 5 1 071 58 2 799 546 n.a. 115 298 182 118 162 62 1 9

Discrepancies in total BC o UK are based on dierentiated calculation method.

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Considering the whole European MC Market, thethree most signicant sectors were Public Sector,Banking & Insurance, and Industry in 2011, thesame as in 2009 and 2010, however, their order

has changed. In 2010 the Public Sector had 20.7%,Banking & Insurance 20.1% while Industry 18.7%o the total.

In 2011 the Public Sector was dominant in vecountries, in Ireland, Hungary, Greece, Macedoniaand Latvia. Banking & Insurance was the mostdeterminant in the turnover in ve countries,

the UK, Spain, Switzerland, Croatia and France.Industry contributed to turnover to the highestdegree in Germany, Finland, Italy and Slovenia.

341 MC Market Composition by Client Sector (% o Turnover), 2011


Figure 17.

Breakdown o Business Consulting

in Selected Key Countries(million ), 2011

Table 9.MC Market Composition by Client

Sector (% o Turnover), 2011

Germany UK Spain France Italy FinlandSwitzer-

landC ro atia I reland Slo venia Hungary Greece

Mace-

doniaLatvia

Total turnover

(million )29 750 20 000 9 995 8 601 3 187 1 302 1 152 605 538 262.3 235 206.8 205.5 85

Industry 33.5% 10% 5% 23% 37% 38.9% 27% 20% 13.3% 30% 9% 14.3% 20% 13%

Banking &Insurance

24.1% 30.4% 26% 28% 13.4% 4.3% 29% 30% 17.3% 15.5% 14% 4.5% 20% 10%

Public sector 9.4% 21.9% 17% 13%12.5%

includingHealthcare

12.7% 7% 20% 25.6% 13.5% 31% 45.2% 35% 20%

Aerospace &Deense

n.a. 2% n.a. n.a. n.a. n.a. n.a. 1% 1.3% n.a. n.a. n.a. n.a. 1%

Telecoms & Media 8.1% 10.1% 17% 4% 9% 16.2% 5% 5% 17.8% n.a. 12% 7% 2% 8%

Wholesale & Retail 4.2% n.a. 4% 6% 4.7% 10.2% 5% 4% 4.1% 8% 6% 9.5% 3% 5%

Energy & Utilities 7.6% 10.3% 11% 11% 6.9% 5.9% 4% 6% 7% 14% 16% 4.5% 6% 11%

Transport & Travel 5% 2.9% 9% 6% 2.5% 3.1% 5% 2% 2.7% n.a. 2% 3% 4% 3%

Healthcare(pharmaceuticals& biotechincluded)

3.3% 2.8% n.a. 4% n.a. 8.7% 16% 10% 6.6% 6.5% 8% 2.5% 5% 4%

Other 4.8% 3.2% 11% 5% 14.5% 0% 2% 2% 4.8% 1.5% 2% 9.5% 5% 5%

Total 100% 94% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

34 Analysis by Client Sector

334 Breakdown o Business Consulting in Selected Key Countries(million ), 2011

In urther analysing Business Consulting (BC),we can state that Strategy and Organization/Operation Management dominated the BC mar-

ket in Germany. Change Management has takenthe lead in the BC Market in the United Kingdom.

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

18 000



HR Consulting 2 202 1 600 n.a. 300

Project Management 1 904 760 n.a. 2 106

Change Management 2 142 3 740 n.a.

3 621 Organisation/ OperationsManagement

4 849 2 680 300

Strategy 4 968 1 720 300 774

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Table 10.

MC Market Composition by ClientSector (million ), 2011

342 MC Market Composition by Client Sector (million ), 2011

In the our key countries the order o the client sec-tors based on their turnovers in volume is as ollows:In Germany the main purchaser o consulting

services is Industry, in the United Kingdom, inSpain and in France it is the Banking & Insurancesector.

Figure 18.Turnover o Key Markets

by Client Sector

343 Key Market Composition by Client Sector

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000



Total 29 750 20 000 9 995 8 601

Other 1 428 640 n.a. 430

Healthcare(pharmaceuticals & biotech included)

982 560 n.a. 344

Transport & Travel 1 488 580 900 516

Energy & Utilities 2 261 2 060 1 099 946

Wholesale & Retail 1 250 n.a. 400 516

Telecoms & Media 2 410 2 020 1 699 344

Aerospace & Deense n.a. 400 n.a. n.a.

Public sector 2 797 4 380 1 699 1 118

Banking & Insurance 7 170 6 080 2 599 2 408

Industry 9 966 2 000 500 1 978

Germany UK Spain France Italy Finland

Switzer-

land C ro at ia I re la nd S lo ve ni a H un ga ry G re ec e

Mace-

donia Latvia

Total turnover

(million )29 750 20 000 9 995 8 601 3 187 1 302 1 152 605 538 262,3 235 206.8 205.5 85

Industry 9 966 2 000 500 1 978 1 837 506 311 121 72 79 21 30 41 11

Banking &Insurance

7 170 6 080 2 599 2 408 665 56 334 182 93 41 33 9 41 9

Pu bl ic s ec to r 2 7 97 4 3 80 1 6 99 1 1 18 n .a . 16 5 8 1 1 21 1 38 3 5 7 3 9 3 7 2 1 7

Aerospace &Deense

n.a. 400 n.a. n.a. n.a. n.a. n.a. 6 7 n.a. n.a. n.a. n.a. 1

Telecoms & Media 2 410 2 020 1 699 344 447 211 58 30 96 n.a. 28 14 4 7

Wholesale & Retail 1 250 n.a. 400 516 233 133 58 24 22 21 14 20 6 4

Energy & Utilities 2 261 2 060 1 099 946 343 77 46 36 35 37 38 9 12 9

Transport & Travel 1 488 580 900 516 124 40 58 12 15 n.a . 5 6 8 3

Healthcare(pharmaceuticals &biotech included)

982 560 n.a. 344 n.a. 113 184 61 36 17 19 5 10 3

Other 1 428 640 n.a. 430 720 - 23 12 26 4 5 20 1 0 4

Total 29 750 18 720 9 995 8 601 - 1 302 1 152 605 538 262 235 207 206 -

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4 Main Trends in ManagementCnsulting in 2011/20124 mi Tds i mgt

Csultig i 2011/2012

41 Austria

The total turnover o the Management Consultingmarket in Austria accounted or 2870 million in2010. As Austria did not participate in surveys inprevious years, we can only compare its currentresults with other countries. The growth rate oAustria was 9.8% in 2010 and this is the highestrate among the examined countries. Amongkey service lines Business Consulting dominateswith almost 70% and IT Consulting is the secondmajor service line. The 88.7% o the consultancyassignments derive rom the private sector.Regarding Austrias export activity, it exportsconsulting services to countries within the EUmainly (81.8%) but has almost one-th o isvolume with countries outside the EU (18.2%).The number o consultants compared to totalemployment in the MC sector stands at 58%.

Austria

Total turnover (million ) 3 130

Growth ratesGrowth rate 2010 9.8%

Growth rate 2011 9.1%

Growth rate 2012 (prevision) 5.6%

Key service lines (%)

Business Consulting 66.6%

IT Consulting 15.2%

Development & Integration n.a.

Outsourcing n.a.

Other Services 18.2%

Key sectors (%)

Private sector 86.9%

Public sector 13.1%

Export (%) 17.1%

EU 13.3%

Countries outside the EU 3.8%

Number o consultants 13 908

Total staf n.a.

42 Croatia

The Management Consulting sector consists o220000 active business entities, thereo 110000companies in Croatia, 99% o which are smallbusiness entities (up to 10 employees).The country is under recession, mainly due to thelong-term deep economic and social crisis, negativeGDP growth in 2012 1.6%, high unemployment(18-20%, depends o season), illiquidity andinsolvency (45 billion HRK pending debts). As aconsequence, consultancy market is in stagnation,market leaders are not yet recognized, clients arenot loyal, and services portolio is limited. As or theuture, potential or consulting services mostly inoperational management, operational support orsmall entrepreneurial companies which do notneed ull or complex management consulting, but

exact and practical help in management.

Croatia

Total turnover (million ) 605

Growth rates

Growth rate 2010 n.a.


Growth rate 2012 (prevision) 6%Key service lines (%)

Business Consulting 19%

IT Consulting 21%

Development & Integration 15%

Outsourcing 15%

Other Services 30%

Key sectors (%)

Industry 20%

Banking & Insurance 30%

Public sector 20%

Export (%) 16%

EU 13%

Countries outside the EU 3%


Total staf 5 331

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Main Trends in ManagementCnsulting in 2011/2012

43 Denmark

In 2011 Denmark provided data concerningthe total turnover in 2011, which accountedor 1786 million ; their growth rate in 2011was 4%. Further consolidation can be seen inindustry, ocus on cost cutting/lean, logistics/SCM,customer relations management but more andmore also new markets and innovation/research.Customers ocus very much on documentation otheir value creation. Public sector is slowing downwhile private sector is looking up.

44 Finland

MC market in Finland generated 1302 million in 2011. This years data exceeded the turnover o2010 (1142 m ). In other words, Finland producedan outstanding 14% growth rate ater last years6%. Business Consulting dominated the marketwith a 61.4% contribution to turnover, gettingahead o Other Services (13%) and Development& Integration (11.6%) which came in second andthird. The Management Consulting industry hasgrown rapidly in Finland. The reasons or this arepartly that the Finnish economy is strong andthe Finnish companies have been able to investin order to meet uture challenges. Partly this isbecause large companies have given notice tohighly educated employees. Many o these have

either started an own consulting business orbeen employed as consultants. On the other handthe amount o people working in the industryhas increased aster than the turnover. There aretwo main reasons or this. The consultant dailyee has gone down at the same time as newentrepreneurs have entered the industry. The newentrepreneurs have not either been able to invoiceall workdays and the competition on the market oSME sector assignments is hard. This means that

in many cases especially the small managementconsulting business protability has not beengood and the turnover is low. On the other handlarge rms turnover have grown astest and theirprotability have remained good.

Denmark


Growth ratesGrowth rate 2010 -1.5%

Growth rate 2011 4%

Growth rate 2012 (prevision) n.a.



IT Consulting 4.1%

Development & Integration 9.3%

Outsourcing 1.4%

Other Services 8.8%

Key sectors (%)

Industry n.a.

Banking & Insurance n.a.

Public sector 35.2%

Export (%) n.a.

EU n.a.

Countries outside the EU n.a.

Number o consultants n.a.

Total staf 13 485

Finland


Growth rates

Growth rate 2010 6%

Growth rate 2011 14%




IT Consulting 7.6%


Outsourcing 6.4%

Other Services 13%

Key sectors (%)

Industry 38.9%

Banking & Insurance 4.3%

Public sector 12.7%

Export (%) 18%

EU 9%Countries outside the EU 9%


Total staf 15 669

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4 Main Trends in ManagementCnsulting in 2011/2012

45 France

Ater a -7% all in 2009, French market reboundedby 5% in 2010. Perspectives seem to be on similartrend or 2011, with a global growth estimationbetween +5% and +7%. Consultancy rms are nowrecording more sales and the volume o proposalsthey issue is increasing. Still, they remain veryprudent or the uture. General concern regardingmacroeconomic events prevails, which would stalleconomic recovery.The market has become less predictable. Consultingrms are getting used to live with short visibilityand they are now recruiting new graduates.Crisis recovery strategies dier according to thesize or the core business o consultancy companies.Medium size consulting rms have recorded thehighest growth rate when Majors have been a bitless buoyant. Medium size consulting rms seemto have beneted rom their eorts to ocus onspecic business sectors and services lines in thepast. Those who concentrate on strategic issuesand general management concerns hit the bestperormance. 2010 new analysis o the marketaccording to average daily rate (ADR) shows thatthe rms with ADRs above 1,500 held a 25%market share and recorded a 10% growth rate.As ar as sectors are concerned, the major splitis between Financial Services which increasedtheir share and reached 30%, and Industry whichranked in the second position at 23%, and thePublic Sector at 15%. Energy Utilities came inthe ourth position with a 11% market share,ollowed at a distance by Retail (5%), Logisticsand Transportation (5%) and TelCos (4%). ThePublic Sector was remarkably resilient during thecrisis thanks to central administration and localgovernment transormation projects. Indeed, thepursuit o those projects will directly impact thelevel o the public sector in 2011 and in the uture.On the contrary, European administration weightsnoticeably small or French consulting rms.

When it comes to service lines, Project Managementrelated activities represent 20% o total marketas opposed to pure consultancy services whichremain governed by Organization and ChangeManagement (30%) thanks to deerred projects in2009 and new transormation projects launchedin 2010. Cost Optimization services also occupya signicant market share (17%), almost equal toStrategy consulting.French consulting industry seems to be acing threemajor issues or the uture:

the necessity to accompany their clients intheir international development abroad andin Europe

the innovation in human resourcesmanagement in order to attract highlyqualied proles

the urge to invest on technological innovationboth to cope with their clients needs and toimprove their own productivity.

France


Growth ratesGrowth rate 2010 5%

Growth rate 2011 6%




IT Consulting 8.8%


Outsourcing 11%

Other Services 1%

Key sectors (%)

Industry 23%


Public sector 13%

Export (%) 11%

EU 7%



Total staf 49 000

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46 Germany

The important industries, such as the market oconsumer goods, chemical industry and industrialmanuacturing remarkably increased theirinvestments in 2010. As a consequence in theseindustries double-digit growth can be seen. As aresult o the surprisingly positive environmentaldevelopments consultancy projects happenedto be about the quick change rom cost-eectivemanagement to the direction o growth. Socompanies consciously intend to gain marketshares. Increasing attention is paid to consultantcompanies by retail and wholesale trade (+9.5%),by the energy and water industries (+ 8.4%) andby automotive industry (+7.8%).There is a growing demand or support concerningstrategic issues rom clients which refects thetendency o growth. In 2010 the quickly growndemand or products and services developed needsor consultancy according to the ollowing issues:corporate nance 9.5%, commerce/marketing 9%,and innovation 8.6%. Meanwhile the demand orHR consultancy has grown as well. Companies inindustry, economy and public administration adaptto current labour market challenges with makingeorts in reorming their HR strategies, managementtrainings and talent management programs.

Positive prospects for 2011

Only one in ten consulting companies countswith decreasing turnover. The ollowing areasare considered the most infuential ones: Firmdevelopment/Innovation, Corporate strategyand Marketing strategies. Certain elds havingpriorities or clients are: the development o newmarkets, the relocation o competence centresinto developing economic regions, productand process innovations, liquidity issues andrevealing alternative ways o nance. Accordingto consultants processing industry will be a major

client in the ollowing period. The anticipatedgrowth rate in the chemical industry is 8.3% whilein the automotive industry it is estimated 7.1%.

Expectations towards consultancies increase further

In line with the above mentioned tendencies,the expectations towards consultancies increaseurther. The majority o the consulting companiesassume that the number o M&As will growamong top management and IT consultingprojects. Lately, it was the Booz/A.T. Kearney andthe Deloitte/Roland Berger prepared, however,did not succeed. Furthermore, there is a need orsuch consulting projects which require specialknowledge, this is extremely important oruniversity students. It has become essential or thewhole sector to develop good consultants theone which is smarter in talent management thatcan gain competitive advantage on the markettoo. For urther inormation see: Facts & Figureszum Beratermarkt 2011/2012 www.bdu.de.

Germany


Growth rates






IT Consulting 15.5%


Outsourcing 6.25%


Key sectors (%)

Industry 33.5%


Public sector 9.4%

Export (%) 15.5%

EU 6.3%



Total staf 177 000

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47 Greece

Management Consulting business in Greecein 2011 remained at the same level as 2010with a slight decline in turnover. It is worthnoting that the large companies presented anincrease in turnover, partly due to the increaseo projects abroad, whereas especially mediumsized companies had a considerable decline. Themain constraints o the market developmentin 2011 were the eects o the continuingnancial crisis in the Greek economy, the generalpolitical climate, the cost cutting policy o bothprivate and public sector companies, the delayin the implementation o the National StrategicFramework Reerence 2007 2013 and the lack oinvestments in the private sector. The main driverso growth were the EU unded programmes andthe need or reorganisation and restructuring inthe private sector. Major types o assignmentswere project management and reorganisation/restructuring. The public sector remained a majorclient, although the majority o revenues were dueto the EU programmes. Major clients were alsothe industry sector, wholesale/retail companiesand banks. For 2012, the main challenges orconsulting rms are the impact o the economiccrisis, the stabilization o the political situation,the lack o investments, the erce competitionand the implementation o restructuring in thepublic sector. The main priorities o clients arecost reduction, globalization and innovation.Many rms have already expanded their activitiesabroad, due to the dicult economic climate inGreece, and others are planning to undertakeinternational projects.For the majority o our members, 2010 wasa rather bad year, which also aected thestructure o the market concerning the size o thecompanies. The main constraints o the marketdevelopment in 2010 were the nancial crisis othe Greek economy, the cost cutting policy o both

private and public sector companies, the delay

in the implementation o the National StrategicFramework Reerence 2007 2013 and the lack oinvestments in the private sector. The main driverso growth were the EU unded programmes andthe need or reorganisation and restructuring inthe private sector. Major types o assignmentswere project management and reorganisation/restructuring. The public sector remained a majorclient, although the majority o revenues was dueto the EU programmes. Major clients were alsoFMCE, wholesale/retail companies and banks. For2011, the main challenges or consulting rmsare the impact o the economic crisis, the lacko investments, the erce competition and theimplementation o restructuring in the publicsector. The main priorities o clients are costreduction, globalization and innovation. Manyrms are ocusing on international projects or areplanning to expand their activities abroad, due to

the dicult economic climate in Greece.

Greece

Total turnover (million ) 206.8

Growth rates

Growth rate 2010 -11.2%


Growth rate 2012 (prevision) -3%



IT Consulting 3.2%


Outsourcing 1.8%


Key sectors (%)

Industry 14.3%


Public sector 45.2%

Export (%) 20.6%

EU 16.3%



Total staf 1 682

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48 Hungary

Public sector orders are slowly catching up,although still ar below pre-crisis rates. Financialmarkets are drying urther out, with mostdevelopments in the nancial services industry onstandby. Manuacturing and retail/wholesale areslowly improving.Public sector orders saw urther decline aterthe signicant drop in the previous two years;although some recovery is inevitable in the uture,the extent and timing is still unclear. The nancialcrisis o 2008 hit the domestic consumptionsharply and the auto and retail/wholesaleindustries are still badly aected, neither haveyet recovered rom the shock - these industrieshave a medium-term opportunity, as deerredexpenditure will increase demand within the next2-3 years. Relative growth is shown in the energyand utilities sectors and plus some in banking, withmore short-term potential in the pharmaceuticaland tourism industries.The corporate nance and the M&A markets areoptimistic, although activity is still below 2007levels. Strategy and processes projects are sporadic,but improvements seem to start. Personneldevelopment, OD and general process trainingsstill suer rom corporate cost cuts.

Eective consulting billing rates are depressed andare only slowly expected to rise. Rise, i any, willbe due to change in the industry mix towards thehigher rated nancial and energy industries andthe rise o service export.

Hungary


Growth ratesGrowth rate 2010 -12%


Growth rate 2012 (prevision) 10%



IT Consulting 36%


Outsourcing 3%

Other Services 5%

Key sectors (%)

Industry 9%


Public sector 31%

Export (%) 24.2%

EU 19.9%



Total staf 4 580

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49 Ireland

Recovery in Ireland in the near term remains tiedto developments elsewhere. Uncertainties inthe euro zone remain and, despite progress do-mestically in scal consolidation, nancial sectorreorms and improved competitiveness, the scaleo the challenges acing the monetary union havethe potential to suppress any signicant early do-mestic recovery.GDP grew in volume terms grew by 0.7% in 2011while GNP declined by 2.5%. Growth orecasts or2012 have been revised down with GNP expectedto be fat and GDP to rise by 0.6%. In 2013, in-creased export volumes rom the predicted recov-ery in the euro zone and a less negative domesticenvironment are expected to aid growth, withGNP to increase by 0.5% and GDP by 2.2%.(While GDP measures the total value o output ogoods and services produced, GNP subtracts netincome fows with the rest o the world and is seenas a more accurate indicator o perormance orIreland the economy contracted in 2011 on thelatter basis.)While EU/IMF programme targets are expected tobe met comortably in 2012, targets or 2013 will bechallenging, even with economic growth. Unem-ployment remains high but opportunities shouldimprove in 2013 i economic growth picks up.Consultancy turnovers are seen by practices, inthe FEACO survey, to have increased by 7% in2011 with an increase o 9% projected or 2013,mainly driven by increases among larger consul-tancy rms.Turnover in the consultancy market in Ireland isprojected at 538m or 2011 with a consultant em-ployment o 3,705. The increases over the previousdata are due to extra practices reported in additionto the 7% market growth. Outsourcing and De-velopment / Integration are again under-reported some practices do not return these as part otheir consultancy operations. I included ully they

would increase turnover and employment.

The gures again show management consultancyin Ireland to have a smaller share o the economythan most other European countries (0.34% o GDPin 2011) vs. FEACO average o 0.67% and 1.12%UK. This may be due to Irelands high element omulti-national enterprises with overseas HQs anda relatively weak indigenous sector. Smaller econ-omies also tend to be less consultancy-intensiveas seen in the FEACO data.The consultancy market is primarily domestic withonly 10% exported to Europe or elsewhere in 2011 a little higher than the 8% reported or 2010.By service area, Management Consulting compris-es 55% o the market with IT Consulting a urther17%. Outsourcing is reported at 8% o the total(vs. 34% in the UK 2009).By sector, Public Sector consultancy is largest at26% with Banking & Insurance at 17% (down rom22%) and Industry at 13%.

Ireland


Growth ratesGrowth rate 2010 -7%

Growth rate 2011 8%




IT Consulting 17.4%


Outsourcing 7.7%


Key sectors (%)

Industry 13.3%


Public sector 25.6%

Export (%) 10%

EU 8%



Total staf 4 150

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410 Italy

Management consulting sector in Italy currentlyhas a market size o around 17.000 consultingrms, o which 85% operate with less than 3 em-ployees. Overall sales revenue equal to nearly 3,2billions o euro, which is the equivalent o 0,2% oGDP. Consulting is centred around 35 large rms,with a large international presence and accountor more than 44% turnover. Smaller companies(almost 14.000 rms) represent approximately27% o the market. Sales revenue increased in2011 by almost +5%, reversing the negativetrends o 2009 and 2010. The strength o thistrend is cooling and in 2012 a more modest in-crease o +1% is anticipated.Large consulting rms have recovered ater thedicult years o 2009 and 2010 (where they ex-periences a more severe downturn than mediumsized rms), and have continued to grow with themarket. They registered growth o +11,2% in 2011with predictions o +3,6% in 2012.Numerous small consulting rms have grown(4,8%) combined with a higher probability o selemployment. Consulting added 33.000 employ-ees o whom 85% were proessionals, increasingemployment by 0,14%. The average productivityo the rms is 116.000 euro per proessional, alarge gap compared with small rms who regis-ter 80.000 euro per proessional and large rmswhich exceed 190.000 o euro o turnover perproessional.In 2011 there was an increase o 22% in oreignconsulting service sales, which allowed them toovercome the less dynamic domestic market.An increase o alliance network strategies nearlydoubled during the 2009-2011 period. They arestrategies which increase the fexibility o me-dium size rms.Large consulting rms operate primarily withlarger groups: 58% o incomes fows rom clientsinvoiced over 500 million euro. They having domi-

nant presence in the tertiary sector (66% o turno-ver), in particular the nancial sector, telecommu-nications, media and utilities. Large rms developservices in rms areas, including ICT, operationsand marketing/sales (33% o turnover), adminis-tration area (29% o turnover) and consulting areamore nearly strategic one (26% o turnover).Medium consulting rms cover the all dierent

classes o clients, in particular SME. They have a acomparatively larger presence in the public andhealth sectors and in the areas o organizationand ormation.Small consulting rms operate primarily withSME: 73% o their incomes come rom clients withturnover less than 50 million euro. They have animportant presence in the manuacturing sec-tor (almost 50% o their turnover). They have astrong ocus in organizational consulting, humanresources and training (ca. 35% o turnover).

Private consulting rms services represent 89%o turnover, 51% is rom tertiary and 37% inmanuacturing, Private consulting rms accountor 31% at the largest rms (above 500 millionso turnover), 30% or medium-large rms (withturnover between 50 and 50 millions) and 39%o small-medium rms (turnover less than 50 mil-

lions euro).Consulting services o public administration(health sector included) represents around 12%o turnover in the sector. Approximately 52% othe consulting are applied in central administra-tion, 28% in local administration and 20% in thehealth sector. Italy suers rom a structural issueo underinvestment in the Public Sector

Italy


Growth rates



Growth rate 2012 (prevision) 1.3%



IT Consulting


Outsourcing 12%


Key sectors (%)

Industry 37%


Public sector 12.2%

Export (%) 10.3%

EU 4.5%



Total staf 33 271

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412 Macedonia

The characteristics o the market are that on thesupply side IT consulting has the biggest marketshare and on the demand side the public sector isthe major customer. The management consultingservices are dominantly provided by oreign con-sulting companies supporting rom subsidiariesor local consultants. The main drivers o the con-sulting growth are the application o internationalstandards, the available EU programs and unds,changes o the national economy structure, risingawareness or innovation and competition, increas-ing regional trade and attracting oreign investmentConsulting services are still not well positioning onthe markets and the demand is changeable andunstable. Purchasing behaviour are directed to-

wards ree o charge consulting services causedby International donors supply with those typeso cooperation with private sectors. It makes bigpressure on the consulting ee o the domes-tic consultants which continuously decreased.The total turnover o MC market in Republic o Mac-edonia accounted or 20, 55 millions .in 2011. Thegrowth rate in Macedonia is 2,1%. Among key servicelines Consulting dominates with 78% (out o 30%Management Consulting and 48% IT Consulting).The 35% o assignments derive rom public sector

ollowed by banking sector and industry with 20%each o them. The export o consulting services is 2%rom total turnover and it is executed in the Balkanmarket. The share o consultants compared with to-tal number o employees in Consulting sector is 80%.

Macedonia

Total turnover (million ) 205.5

Growth rates


Growth rate 2011 2.7%Growth rate 2012 (prevision) n.a.



IT Consulting 48%


Outsourcing 5%

Other Services 10%

Key sectors (%)

Industry 20%


Public sector 35%

Export (%) 2%

EU 0%Countries outside the EU 2%


Total staf n.a.

411 Latvia

MC industry still has not recovered rom theeconomic crisis and the Latvian governmentbudget consolidation. In MC services market isdominated by the services, aimed at quick resultsand services related to the European Union Funds.Such a service request has created mutilatedunderstanding o management consultants, socustomers more and more evaluate the impacto consultant services on the organization andhuman resource development. Consultants needto pay additional attention to raise customerawareness on innovations in industry as well as toensure own sustainability o industry.

Latvia


Growth rates


Growth rate 2011 8%




IT Consulting 44%


Outsourcing 13%

Other Services 35%

Key sectors (%)

Industry 13%


Public sector 20%

Export (%) 7%

EU 3%


Number o consultants 307

Total staf 409

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413 Portugal

The Portuguese economy, ater a period o slow-down, aces now a signicant recession. Portugalis under an agreement or economic and nancialassistance with IMF, ECB and EC, since a year ago,with serious restrictions to the investment (bothpublic and private) and nancing o the economy.This means that the domestic market o our com-panies is generally decreasing. Portugal is imple-menting a very hard scal adjustment. The decito our national budget has been cut rom around10% o GDP in 2009 (with the measures o stimu-lus to the economy) to 4,5% o GDP this year andis expected to get less than 3% in 2013. The privatesector and the consumption has been attackedthrough an extraordinary drop o banking nanceo the economy and a signicant increase o taxes.As a consequence, Portugal is under recession.GDP has decreased 1,9% in 2011 and it is oreseenan additional decrease o 2,8% in 2012. Unemploy-ment has increased rom 10,8% in 2010 to 12,7%in 2011 and the last gures, related to April 2012,show around 15% and we must anticipate thatunemployment will continue growing during nextmonths. In this context, with a strong decrease othe investment and the need to adjust the operat-ing costs, we believe that the sector will ace theneed o a strong adjustment and downsizing o therms operating mainly in the domestic market.The global crisis had a signicant impact over thePortuguese economy. The measures taken in 2009in avour o the economic recovery, protection othe employment and the social relie measures,conducted the public accounts to a high decit.From the other hand, the Portuguese debt in theinternational market aced a critical point with theinterest rate growing ast to an unacceptable level.Those conditions determined that in the rst quar-ter o 2011, the Portuguese government conduct-

ed negotiations with the EC, ECB and IMF and con-cluded a Memorandum o Understanding in a viewto get a stabilization o the nancing conditions,being committed to several conditions, namely,strong restrictions on public expenditures and in-vestments, increase the taxes, nalise the privati-zations program and reorm the public sector ona central and local levels. The general context im-poses severe adjustments to the companies dueto the market general restrictions, meaning, ormanagement consulting market, a negative globalenvironment, both in public and private sector. Inany case, the operational consulting services canget new markets, beneting rom the restructuringo some medium sized companies. The whole sec-tor is getting a great dynamism in what concernsthe export activities.

Portugal


Growth rates


Growth rate 201

Documents

Feaco Survey 2011-2012