CONSULTING MARKET PROGRAMME
The DACH consulting market in 2015
Contents
Executive summary
4
Methodology 5
Definitions of sectors and services
6
Contributors 7
DACH summary
8
Market overview
10
What everybody’s talking about
12
Trouble elsewhere
12
The trouble for the Swiss
13
The trouble for the Austrians
13
The trouble for the Germans
13
So what?
14
Digitisation 14
A change of momentum
14
Digital on the inside
15
Fierce competition
16
Business models
17
Market data
19
Sectors
19
Financial services
21
Manufacturing
24
Energy and resources
26
Services
28
Public sector
30
Technology, media and telecoms
32
Retail
34
Pharma and biotech
36
Healthcare
38
Services
40
Strategy
41
Technology
43
Operational improvement
45
Financial management and risk
47
Consulting firms
51
Performance by segment
51
Type S
53
Type T
54
Type A
55
Type P
56
2015 forecast
57
A word on methodology
57
The consultant view
57
The client view
58
What clients are working on
58
What’s turning into consulting work?
59
Why clients are using consultants
61
Forecast
62
DACH region overall
62
Countries – prospects for growth 2015
62
Services – prospects for growth 2015
63
Sectors – prospects for growth 2015
64
Segments – prospects for growth 2015
65
About the authors
66
Our report is based on two major sources of primary data:
Clients of consulting firms:
We surveyed 211 (typically C-suite) end users of consulting services in the DACH region. The majority (95%) work for private sector organisations, many of which are multinationals. The remaining 5% work in various public sector organisations.
Consulting firms:
Our definition of management consulting includes a broad range of business advisory services, but excludes: tax advisory; audit; the implementation of IT systems; the delivery of outsourced/offshored services; and HR compensation/ benefits administration and technology. Where mergers and acquisitions work is concerned, consulting on deals is included (under strategy), but corporate finance fees on deals themselves are generally not included although it is not always straightforward to separate the two.
The quantitative data contained in this report focuses on consulting done by mid-sized and large-sized consulting firms (those with more than 50 consultants) and typically includes work they have carried out for mid- and large-sized clients. It therefore reflects the ‘addressable’ market for the majority of mid- and large-sized consulting firms, as most would not seek or be able to compete with very small firms and/or freelance consultants. We should emphasise that there are no standard sources of definitions of data within geographies let alone between them. We are, however, confident that the richness of our qualitative data, combined with Source’s unparalleled industry expertise, means that our analysis fairly and accurately reflects the state of the market.
We interviewed 22 very senior (typically the most senior person in their country) consultants from most of the leading consulting firms in the country and many smaller local specialists. Our model (which we use to size the industry and its growth rates) is based on data from more than 62 firms in the region with more than 50 consultants. Please note that our 2013 baseline figures have changed due to the implementation of improvements to our research methods (we are happy to provide subscribers with a restated set of 2013 baseline figures should this be of interest).
Distribution strategy Environmental, sustainability and CSR
Operational review
Strategy Business and financial modelling Corporate re-structuring
Corporate recovery and turnaround Corporate strategy
Market analysis and strategy Market research
Policy formulation Strategic sourcing/ offshoring strategy Due diligence and valuation Infrastructure/asset financing and management, PFI Mergers and acquisitions Customer service New product development
Branding Marketing and channel
management Customer relationship management Pricing
Sales force effectiveness Category management Sales and distribution planning
Technology ERP consulting IT training
Application of new technology Hardware/software selection IT design and build
IT strategy, planning and review IT testing and integration Management information and business intelligence Technology and security risk services
Hardware/software and systems implementation Requirements definition Web and internet consulting Project and programme
management (eg where consulting firm has been engaged to run a specific project which it is otherwise not involved in)
Sectors Sub-sectors
Energy and resources Includes utilitiesFinancial services Includes banking, insurance, investment and capital markets
Manufacturing Includes construction
Pharma and biotech
Healthcare Includes publicly-funded healthcare
Public sector Includes federal/central and state/regional/local government, state-owned organisations and education. Excludes healthcare
Retail
Services Includes business and consumer services, real estate, professional services and transportation
Technology, media and telecoms
Services Sub-services
Financial management Responding to regulationand risk Finance function
Budgeting/financial planning process IT risk
Operational risk Financial risk Programme risk
HR and change HR strategy and effectiveness
management Benefits, compensation and
pensions Change management
Internal communications Organisational design and culture Stakeholder management
Team effectiveness and collaboration Leadership and governance Performance management Talent management/training and development
Operational improvement Business continuity and
recovery Knowledge management
Lean and Six Sigma
Property and estate management Quality and performance
management Supply chain management
Cost-cutting Innovation
Services
Sub-services
Contributors
Name
Job title
Firm
Adrian Edwards Deputy EMEIA Advisory Leader and Global EY
Advisory Sectors
Alexander Lippner Head of Management Consulting, Austria KPMG
Christian Koehler Partner Strategy Engineers
Christine Ciriani Partner Capco
Fabian Doemer Managing Partner Central Europe Arthur D. Little
Georg Tacke CEO Simon-Kucher & Partners
Heiner Diefenbach Vice President Services, Central Europe Fujitsu
Holger Herbert Consulting Leader Germany PwC
Ingo Rauser Partner Capco
Klaus Rudolph Vice President Hitachi Consulting
Markus T. Schweizer Managing Partner, Advisory Services, Germany / EY Switzerland / Austria
Markus Wiederstein Partner polariXpartner
Maurizio Bradlaw CEO Capco Germany Capco
Michael Träm Managing Director Hay Group
Nicholas Davies Managing Partner Deloitte
Robert Gutsche Head of Consulting, Germany KPMG
Roland Falb Managing Partner Roland Berger
Simon Harris Chief Strategy Officer Oliver Wyman
Stefan Aichbauer Managing Partner H & Z
Ulrich Amberg Head of IT Advisory, Switzerland KPMG
Uwe Michel Member of the Managing Board Horváth and Partners
Walter Hagemeier Managing Director Accenture Strategy Austria, Accenture
Switzerland, Germany
We are extremely grateful to all the people we spoke to for making this report possible. Below is a list of the individuals that have contributed from consulting firms (some consultants choose to remain anonymous).
About the authors
Edward Haigh
Ed was Source's first employee and is now a Director of the business. Prior to joining Source in 2008, he spent seven years in various marketing roles for Sony Europe, followed by a spell as Marketing Director for a small start-up venture. Ed oversees Source's strategic marketing activities, writes many of our reports and speaks regularly, to domestic and international audiences, about the consulting market.
Zoë Stumpf
Zoë is Head of Qualitative Research at Source and has been with us since the beginning of 2012. Prior to this, she has had more than 12 years working as a Management Consultant, firstly with KPMG where she led a number of operational improvement and post-merger integration projects, before moving on to be Head of Marketing and Internal Communications at Atos Consulting. She has also worked as an Independent Marketing Consultant at the UK Management Consultancies Association and at Xantus Consulting.
Alison Huntington
Alison is a Senior Analyst at Source. Prior to joining in August 2014, Alison was a management consultant at Deloitte and Moorhouse where she worked on a wide range of projects, gaining experience in financial services, transport, manufacturing, and telecoms.
Reports for different regions vary in length
but the content includes:
• Overall description of the market in
the region
• Data for the consulting market, by
sector, service and segment
• High-level breakdown by geography
within region
• Discussion about the current state
of, and prospects for, the consulting
market by sector, service and
segment, combining the feedback of
consultants
• Analysis of the key challenges and
opportunities in the market
• Feedback from clients about individual
firms (in selected regions)
• Growth forecasts
Please note that this content is subject to slight changes and amendments
February UK
March
Gulf Cooperation Council (GCC)
Nordics
April France
Benelux
May
Germany, Switzerland, Austria (DACH)
USA
June
Eastern Europe, Russia
Iberia
Italy
July Australia
India
September Africa
Brazil
October China
USA Alice Noyelle UK and Europe Alice Noyelle Middle East Jodi DaviesFor information about the products or services available from Source, please contact:
2015 Consulting Market
Programme research schedule
M&A MAR KET S CANS PROG RAMM E STRA TEGIC PLAN NING CLIEN T PR OG RA MME PE RC EP TION WHIT E SPAC E STRA TEGY AND POSIT IONING DATA M ININ G A ND A NA LY SIS PROGRAM M ES CONSU LTING MARKE T SPECIA LISED RES EARCH AN D A DVIC E SP ECIA L C LIE NT I NSIGHTS BE SP OK E C LIE NT FEED BACK THOUGHT L EADE RSHI P RE VIEW S STRATEGY BRIE FINGS A ND CA PABI LITY D EVEL OPM ENT
consulting. Set up in 2007 with offices in London and Dubai, Source serves both consulting firms and their clients with expert analysis, research and reporting. We draw not only on our extensive in-house experience, but also on the breadth of our relationships with both suppliers and buyers. All of our work is underpinned by our core values of intelligence, integrity, efficiency and transparency.
Source was founded by Fiona Czerniawska and Joy Burnford. Fiona is one of the world's leading experts on the consulting industry. She has written numerous books on the industry including: The Intelligent Client and The Economist books,
Business Consulting: A Guide to How it Works and How to Make it Work and Buying Professional Services. For further information please visit www.sourceforconsulting.com