Financial services 'dominate consulting market'

Financial services firms are the biggest players in the UK's burgeoning management consulting market, according to a new study released by Source Information Services.

The sector is growing by around seven per cent annually and is now worth around £1.8 billion to the economy, reports Accountancy Age.

In addition to highlighting just how successful the industry has been over the last few years despite the economically uncertain conditions it has faced, this research also highlights the importance of diversification among financial services firms.

Fundamentally, they are no longer merely concerned with cash and investment, instead offering a more holistic, broad-based service to clients.

The market for these firms is expected to grow by between five and ten per cent over the course of 2014.

Edward Haigh, a director of Source and an author of the report, told the news provider the prospects for the future look good.

Financial services has expanded while being dominated by work connected with regulation and remediation, with the Big Four firms at the forefront of this movement - they grew at twice the rate of their competitors.

New areas have been demanding help from consultants, with firms across various industries keen to cut costs.

"The star of the show will probably be the retail sector, which is grappling with the challenges it faces in a multi-channel environment and calling on consultants to help it as it does. Retailers drive a hard bargain and will often expect consultants to commit to delivering specified outcomes, but we still expect double-digit growth in the sector's consulting market," explained Mr Haigh.

In general, technological advances are playing a major role in the demand for expert business advice, with organisations keen to keep track of their return on investment when spending big on new processes.

However, cost-cutting still plays a major part in the consultancy role, the report revealed.