Consulting Industry Trends

Less Consulting from Accounting Firms

The 2002 Sarbanes-Oxley Act (SOX) counters conflicts of interest by separating the consulting activities of accounting firms from their audit services. SOX bars public corporations from hiring the same accounting firm for audits and consulting services. In response, many accounting firms have spun off their consulting arms.

Greater Use of Consultants

The evolution of many US companies to a leaner business model has created greater demand for consultants. The expertise to structure and direct the operations of complicated businesses is difficult for many corporations to get internally, especially in rapidly evolving industries. Many US businesses now retain consultants as a matter of course, not just when they perceive a problem.

Consultants Expanding Services

Many consulting firms have expanded their areas of expertise in a bid to become one-source service providers to corporate customers. Many traditional management consultants have added expertise in IT and HR, which have become important strategic factors in traditional fields like finance, marketing, and production.

More International Work

Consulting firms have followed the expansion of US corporations abroad and benefited from the greater volume of international mergers and acquisitions, which often require the help of consultants. IT consulting has easily translated abroad, followed by consulting in other specialties.

Turnaround Business

Bankers are moving faster to call in consultants when their clients face economic difficulty, since early intervention generally gets better results. Big consulting firms have turnaround groups, but a large amount of business is also by specialist firms.