Management Consulting Services
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 90,000 management consulting firms in the US assist businesses and organizations with administrative, strategic, and management-related issues. Major revenue categories include strategic and financial management consulting and implementation services. Firms may also offer operations and supply chain, marketing, and human resources management consulting services. Customers include businesses, institutions, non-profit organizations, and government entities.
Competitive Bidding
Many clients use competitive bidding when soliciting management consulting services and preparing bids is a costly process for consulting firms and requires significant amounts of managerial time and effort.
Dependence On Highly-Skilled Labor
Management consulting firms solve complex business problems and rely on highly-skilled, educated, and experienced industry professionals to provide consulting services.
Industry size & Structure
The average management consulting services provider operates out of a single location, employs fewer than 5 workers, and generates about $3.4 million annually.
- The management consulting services industry consists of about 90,000 firms that employ about 845,000 workers and generate about $307 billion annually.
- The industry is fragmented; the top 50 companies account for 41% of industry revenue.
- Large companies include McKinsey and Company, Booz Allen Hamilton, Boston Consulting Group, Bain, and Accenture. Most large firms offer comprehensive services and operate nationally and internationally.
Industry Forecast
Management Consulting Services Industry Growth
Recent Developments
Oct 17, 2024 - Cyber Chief Pay Not Keeping Pace with Rising Threats
- The compensation received by chief information security officers (CISO) has risen but often fails to keep up with increasing cyber threats and the stress of dealing with them, according to The Wall Street Journal. The average salary for C-level cybersecurity leaders is about $565,000, which some industry insiders suggest is not enough given the evolving scope of the job. Cyber chiefs must not only defend against cyberattacks but also handle the corporate response after a breach and participate in related litigation and regulatory inquiries. The average merit increase for CISOs this year was 6.4%, according to a survey by the cybersecurity firm IANS and the recruiting firm Artico Search. However, recent corporate belt-tightening could give way to higher CISO pay next year as inflation and macroeconomic uncertainty ease.
- M&A activity in the insurance sector remains robust and is poised for further growth, according to a recent report by consulting firm West Monroe, which surveyed 250 insurance and private equity executives. In 2023, overall M&A activity declined by 18.4%, but insurance deals saw only a contraction of 2.3%. All respondents surveyed said they planned to pursue insurance M&A deals in the next 12-24 months, and 15% said they expect to complete five or more deals over the same period. The need to digitally transform, including AI implementation, is a driving force for M&A activity in the insurance sector. A quarter of respondents said they are prioritizing AI in their M&A strategies over the next two years. Finding top AI talent remains challenging, and some insurance firms plan to pursue “acqui-hire” deals to secure enough data and tech talent.
- About half of employees said they have considered leaving their jobs due to frequent and unsuccessful corporate transformations, according to a recent survey of executives and managers in the US and UK by UK-based digital business services firm Emergn. Almost 60% of respondents reported feeling burned out by the extra work created by repeated change programs, and 30% said they’d been through five or more transformations over the last five years. Survey results suggest only about half of transformations are successful. More than half of the respondents said they had worked on a transformation project with one of the three largest consulting firms, and 87% of those respondents felt the firms had a negative impact or provided no positive effect at all. The study suggests that workers understand the need for change but are unhappy with how changes are implemented.
- In September, PricewaterhouseCoopers (PwC) said it would lay off about 1,800 workers, the company’s first such move since 2009, according to The Wall Street Journal. PwC said it would also restructure its technology group amid a slow demand for some of its advisory services. The reductions will include associates and managing directors in the firm’s business services, and audit and tax segments, and about half the cuts will be for positions outside the US. PwC noted that, unlike its Big Four accounting firm peers, it has not laid off US-based workers over the past four years. The move by PwC comes as some professional services firms have seen demand for certain services soften amid high interest rates and a sluggish economy.
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