the alm global forecast: north america consulting
TRANSCRIPT
Sample Report: Global Forecast
The ALM Global Forecast: North America Consulting
Global Consulting Research Series
Lasse PitkaeniemiSenior Director, Research T +1 212-457-9183 [email protected]
Author
For more information, visit the ALM Intelligence website at www.consulting.almintel.com/analysts.
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Sample Report: Global Forecast
Contents
Overview 3
Client Demand Trends 4
Market Size 6
Market Size by Service 9
Market Size by Region 19
Market Structure 22
Definition 24
Methodology 25
About ALM Intelligence 27
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Sample Report: Global Forecast
Overview
Before the elections of Justin Trudeau and Donald Trump in the late 2015 and late 2016, respectively, the consulting market
in Canada and the US was entering a slumber. GDP was barely growing, M&A market had peaked, no new major regulations
were coming from either Ottawa or Washington D.C., and central banks were starting to taper off their quantitative easing. In
this environment only one consulting spend driver remained: technology. Justin Trudeau’s victory is significant for consulting,
since the change in ruling party from Conservatives to Liberals broke the decade-long streak for conservatives, opening up the
country for new regulatory activity, most likely on the environmental side. The Canadian Liberals are also discussing the full
legalization of cannabis use and cultivation, which was previously unthinkable and would open up an entirely new industry.
When combined with the bottoming out of the commodity price cycle, a boom in consulting for the natural resources &
power industry is to be expected. The election of Donald Trump as US President may have been the biggest shock Western
democracies have witnessed to date, and he is facing plenty of opposition to his agenda from Democrats and Republicans
alike. Nonetheless, business optimism in the US is up with business leaders hoping for regulatory change in US environment,
healthcare, labor, and tax laws to mention a few. Even if Trump fails to pass much of his agenda, business optimism has already
resulted in changes in corporate decision making with new strategic initiatives, growth related investment, and M&A activity,
all of which are largely beneficial for the consulting market.
The North America consulting market seems to be entering a sweet spot. No matter how regulatory changes are going to play
out on both sides of the border, the fact remains that change is afoot and that combined with steady central bank policies
and business optimism are enough to remove regime uncertainty that was dampening consulting spend, particularly during
Obama’s second term. Technological advancements in the form of automation and data analytics are playing an enhanced
role in the North America market and utilizing these two technologies may well become what separates the winners from the
losers in industries such as retail, transportation and even healthcare. What differentiates automation from mere outsourcing
is that where outsourcing simply replaced expensive workers with more affordable ones, automation eliminates them
altogether, enabling companies to backshore their operations from abroad with large cost savings and enhanced branding
to boot. While companies are fully embracing data analytics, they are failing to understand its deeper significance. Instead of
thinking about data as an additional channel to monetize, companies need to view data holistically from basic cybersecurity
issues to branding and moral questions.
Regulatory changes, pent-up investment demand, and fruition of key technologies is changing the trajectory for North
America consulting growth, particularly in the Canadian consulting market. Compared to other regions, the North America
consulting market is more concentrated to a smaller number of large dominating providers.
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Sample Report: Global Forecast
Client Demand TrendsBuyers of North America Consulting
The North American consulting market is very mature, and the buyers of consulting services come from all industries and
regions. Inside North American companies, we can see the following distinctions:
■ CEOs are preparing to realign their company strategy to match the expected changes in the regulatory environment
■ Business unit heads are focused on improving efficiency through technological change and are keenly aware of the
problems with legacy solutions
■ HR departments are struggling to find the right talent and are willing rethinking their offering packages
Demand Drivers of North America ConsultingConsulting demand derives from company efforts to respond to changes in demand, supply, and technology and regulation
in their markets.
North America Consulting Demand DriversDriver Issue Client Imperatives
Demand
Supply
Technology & Regulation
Source: ALM Intelligence
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Client Demand TrendsBuyers of North America Consulting
North America Consulting Client NeedsAs companies respond to these drivers they encounter a number of challenges that furnish the underlying needs that
consultants must meet as they design and deliver solutions to their clients.
North America Consulting Client NeedsClient Function Challenges Consulting Implications
Corporate Office
Front Office
Middle Office
Back Office
Source: ALM Intelligence
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Asia
Pac
i�c
EMEA
Latin
Am
eric
a
NorthAmerica
United States
CanadaSouthern Cone
MexicoCaribbean Basin
Brazil Andean Countries United Kingdom & Ireland
Southern Europe
Middle East & Africa
Germanic Region
Eastern Europe
Southern Asia
Southeast Asia, Micronesia & Melanesia
Japan & Korea
Greater China & Mongolia
Australasia & Polynesia
Market SizeMarket Size & Composition
North America makes up approximately xx of the management consulting market, with client spending exceeding $x.x in
2016.
Source: ALM Intelligence estimates
Management Consulting Market
$XX.X Billion
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Market SizeConsulting Spending by Industry Sector
Legend: Very Strong Strong Moderate Weak None
North America Consulting Regional Market Trends
Region Growth Trend Market Attributes
Financial Services
Healthcare
Manufacturing
Source: ALM Intelligence
Source: ALM Intelligence estimates
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Market SizeMarket Growth Outlook
Base Case Forecast
Forecast Scenarios
Source: ALM Intelligence estimates
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Market Size by ServiceConsulting Spending by Service
Source: ALM Intelligence estimates
Legend: Very Strong Strong Moderate Weak None
North America Consulting Top Industry Sector Trends
Service Growth Trend Market Attributes
Corporate Office
Front Office
Middle Office
Back Office
Source: ALM Intelligence
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Market Size by ServiceEnterprise Strategy Growth Outlook
Base Case Forecast
Forecast Scenarios
Source: ALM Intelligence estimates
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Market Size by ServiceCorporate Finance Growth Outlook
Base Case Forecast
Forecast Scenarios
Source: ALM Intelligence estimates
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Market Size by ServiceOperating Model Growth Outlook
Base Case Forecast
Forecast Scenarios
Source: ALM Intelligence estimates
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Market Size by ServiceCustomer Growth Outlook
Base Case Forecast
Forecast Scenarios
Source: ALM Intelligence estimates
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Market Size by ServiceR&D Growth Outlook
Base Case Forecast
Forecast Scenarios
Source: ALM Intelligence estimates
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Market Size by ServiceSupply Chain Growth Outlook
Base Case Forecast
Forecast Scenarios
Source: ALM Intelligence estimates
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Market Size by ServiceOperations Growth Outlook
Base Case Forecast
Forecast Scenarios
Source: ALM Intelligence estimates
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Market Size by ServiceRewards Management Growth Outlook
Base Case Forecast
Forecast Scenarios
Source: ALM Intelligence estimates
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Market Size by ServiceTalent & Workforce Growth Outlook
Base Case Forecast
Forecast Scenarios
Source: ALM Intelligence estimates
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Market Size by RegionConsulting Spending by Region
Legend: Very Strong Strong Moderate Weak None
North America Consulting Region Market Trends
Segment Growth Trend Market Attributes
Canada
United States
Source: ALM Intelligence
Source: ALM Intelligence estimates
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Market Size by RegionCanada Growth Outlook
Base Case Forecast
Forecast Scenarios
Source: ALM Intelligence estimates
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Market Size by RegionUnited States Growth Outlook
Base Case Forecast
Forecast Scenarios
Source: ALM Intelligence estimates
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Market StructureMarket Share Rankings
The distribution of North America consulting provider market shares is more skewed than the overall management consulting
market. This indicates that larger consulting providers are more prominent in this region.
North America Consulting RankingsRank Firm Total CY 2016 Growth % Change in Rank Market Share
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Source: ALM Intelligence
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Market StructureStrategic Dynamics
Source: ALM Intelligence estimates
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DefinitionsNorth America
North AmericaThe North America consulting market is made up of the
United States and Canada.
United StatesThe US consulting market includes the 48 continental
states and Washington DC, Alaska and Hawaii. It does not
include American Samoa, Guam, the Northern Mariana
Islands, Palmyra Atoll, Puerto Rico, and the United States
Virgin Islands. However, the consulting market in the
British territory of Bermuda is included in the US market
size.
CanadaThe Canada consulting market includes Canada as well as the French territory Saint Pierre and Miquelon, a tiny island located
next to Prince Edward Island.
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Sample Report: Global Forecast
MethodologyOverview
ALM Intelligence has been researching the management, financial and IT consulting industry for over 40 years, studying
the global consulting marketplace at multiple levels. The resulting market analyses help buyers of consulting services to
effectively target best in class providers, and help consulting providers to identify and evaluate business opportunities.
The research is conducted around three primary dimensions:
■ Consulting Service Lines
■ Client Vertical Industries
■ Global Geographic Regions
The proprietary research methodology comprises four components:
■ Extensive interviews with consulting practice leaders, financial analysts, consulting clients, and clientside industry experts
■ Data and background material from the proprietary library of research on the consulting industry and individual firms
■ Quantitative data collection from primary and secondary sources
■ Key economic data relevant to the sector(s) being analyzed
The research output for a project is derived predominantly from primary research.
Data is obtained through a centralized effort, with teams of analysts collecting, assessing, fact-checking, and refreshing
baseline information on leading consultancies and consulting markets. This information populates an extensive knowledge
base of consulting providers, widely regarded as among the most comprehensive in the world.
Working collaboratively, analysts narrow their research to the most discrete and pertinent intersection of consulting service/
industry/geography.
The experience and knowledge of the analyst team are critical to the success of these research endeavors. Directors and
associate directors average over a decade of consulting and/or analyst experience, with an emphasis on professional services.
Junior analysts typically bring an average of five years of consulting and/or analyst experience.
The group’s long-term relationships with consulting clients and industry leaders are based on trust and respect. ALM
Intelligence’s fundamental goal is to deliver objective assessments and insightful viewpoints on the management, financial
and IT consulting market.
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Sample Report: Global Forecast
MethodologyHow We Evaluate Consulting Markets
ALM Intelligence’s goal is to deliver objective analyses to help providers of consulting services understand the structure and
prospects of the markets in which they compete in order to assess business opportunities and competitive threats.
ALM Intelligence evaluates consulting trends with respect to a particular consulting area in terms of the following elements:
■ Market Size & Outlook: What is the size of the market in the context of the consulting area? What are the distribution
and drivers of client spending across geographic regions and industry sectors? What is the outlook for market growth and
how might different scenarios alter the expected trajectory?
■ Market Structure: What is the distribution of providers in the market? How concentrated is the market? What are the
provider-level strategic dynamics that will shape market structure in the context of changes in demand, barriers to entry,
and returns to scale?
■ Client Demand Trends: What are the drivers of client demand? How do client needs influence the nature of consulting
solutions?
■ Consulting Provider Trends: What differentiates providers in terms of their consulting approaches and service delivery
models? How are providers positioned relative to client functions and activities? What differentiates providers’ business
and operating models? How do the attributes of different provider peer groups manifest in patterns of capabilities?
In addition to briefings with consulting buyers and providers, ALM Intelligence uses a mosaic approach to derive its findings.
This incorporates primary research conducted with industry practitioners, academics, and other experts and secondary
research on providers’ public information and other third-party sources of data and analysis.
About ALM Intelligence
ALM Intelligence provides accurate and reliable market sizing and forecasts on consulting services worldwide, needs-analysis
and vendor profiling for buyers of consulting services, timely and insightful intelligence on the top consulting firms in their
respective markets, and operational benchmarks that measure consulting performance. ALM Intelligence’s research spans
multiple service areas, client vertical industries, and geographies. Our analysts provide expert commentary at consulting
industry events worldwide, and offer custom research for Management Consulting and IT Services firms. More information
about ALM Intelligence is available at www.consulting.almintel.com.
ALM, an information and intelligence company, provides customers with critical news, data, analysis, marketing solutions and
events to successfully manage the business of business. For more information, visit www.alm.com.
About the Forecast Consulting Research SeriesALM Intelligence’s exclusive, quantitative assessment of provider size by service segment, industry and geography, creates a
short list for the buyers of the most extensive consulting firms. The forecast consulting series explores nine service segments,
12 industries and four geographic areas.
For further information and to purchase ALM Intelligence research, contact [email protected], 855-808-4550.
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Sample Report: Global Forecast