Market Trends of Europe Consulting Services Industry
Operations Consulting to Witness Major Growth
- Operations consulting refers to operations management that helps improve the company’s internal operations and the performance of the value chain. It comprises activities related to the integration of business solutions through business process reengineering (BPR), customer/supplier relations management (CRM), turnaround/cost reduction, purchasing and supply chain management, including manufacturing, research and development (R&D), product development, and logistics.
- The key factors propelling the need for operations consulting services in Europe include rising costs, labor shortages, and certain product delays. According to the Office for National Statistics (UK), as of October 2023, approximately 9.7% of businesses in the United Kingdom were experiencing worker shortages. To overcome these challenges, businesses from various industries opt for operations consulting.
- According to SAP, Dutch businesses are lagging in their supply chain. They intend to recalibrate their supply chains to make them more local by adopting new technology that helps them reduce risk and achieve greater sustainability in the short term. About 97% of companies rate their supply chain as suboptimal due to delays in producing goods and a lack of raw materials. They plan to implement new supply chain-focused contingency measures. Such challenges associated with the supply chain are anticipated to drive demand for operations consulting services in the region.
- There is a rapid evolution of technological developments in industries including manufacturing, oil and gas, transportation and logistics, food and beverage, life sciences, and private equity. Such rising needs from various industry verticals are expected to further boost the demand for operations consulting services over the forecast period.
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Germany to Hold Major Market Share
- The country is home to many consulting firms, including international consultancies and local specialist players. Some major consulting firms include Bain & Company, Kearney, McKinsey & Company, Boston Consulting Group, and many more.
- According to the German Association for Consulting Firms (BDU) data, Germany is home to more than 4,000 major consultancies. These consulting firms mainly advise and assist their clients across any possible sector and area of expertise, indicating that companies in the private and public sectors face an enormous pool of consultancies to choose from for their required services.
- There is a growing need for consulting services, owing to the strong economic growth in the regulatory reforms in the financial sector, outsourcing back-end operations to low-cost economies, and public investments. Over the forecast period, faster economic growth, the emergence of digital consulting, and the rise of globalization are expected to drive further growth in the region. For instance, according to IMF, Germany’s GDP per capita stood at almost USD 52,823.58 in 2023 and ranked among the top 20 countries worldwide with the highest GDP per capita.
- Several consulting firms are expanding their geographical presence by establishing an office in the country and acquiring consulting firms to expand their offerings and presence. For instance, in November 2023, Ramboll acquired a strategy implementation consultancy. Ramboll has significantly strengthened its Management Consulting practice by acquiring a Germany-based management consultancy. Strategy implementation provider Acondas joined Ramboll, adding significant expertise to the growing offering in the corporate transformation space.
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