IT and outsourcing drive UK consultancy growth

Huge growth in IT and outsourcing-related consulting is behind a double-digit percentage rise in management consultancy revenues in the UK over the last year.

IT consulting revenues have grown 59 per cent since the consulting industry returned to growth at the end of 2002 and IT-related consulting now accounts for 55 per cent of UK consulting industry revenues.

The annual figures are compiled by the Management Consultancies Association (MCA), which represents UK-based consulting firms.

IT consulting revenues rose by 6.2 per cent over the last year to £310m, while outsourcing consultancy revenues rose by 27.7 per cent to £502m. Management consultancy revenues as a whole rose by 11.2 per cent to £1.46bn.

The MCA claims there is also a return of the "war for talent" at senior levels in the sector with 54 per cent of firms reporting difficulty filling positions for senior and managing consultants.

Lynton Barker, president of MCA and chairman of Hedra, said in the report: "The last two years have seen the consulting industry return to a sustained period of growth. Although there is the expectation of slower volume sales growth towards the end of this year, there is confidence that growth will continue for the consulting sector."

He said financial services, transport and communications, and the public sector are offering the best prospects for consultancy work in the next quarter.