The growth of the consulting industry has broken records during the third quarter of 2021.
The pandemic resulted in five quarters of negative growth, however, the industry has managed to recover much faster than expected. The consulting industry has shown strong numbers in both Q2 and Q3, with the latter showing record high growth.
The IT consulting companies are the big winners. They have benefited greatly from the post pandemic digitalisation. Society consultants have had a somewhat more challenging quarter.
A boom for the consultancy industry
Mattias Loxi, co-founder & CMO at Cinode had the following insights.
“The consulting industry keeps on growing, seen by the number of acquisitions continuing to rise. During Q3, one out of three consulting companies have grown over 20%.”
“Two out of three consulting firms have increased their margins during the period with a high occupancy rate. Half of the consulting companies have upped their recruiting efforts.”
“The skills gap in the consulting industry remains big and is at risk of becoming greater. Although half of the firms have upped their recruiting, there is a lack of consultants.”
“Most companies would agree that they need to grow more to streamline with the demand.”
“However, many consulting companies have a hard time attracting and retaining talents as there are a large number of companies chasing the same talents.”
“Growing a network of partners and sub-consultants is the best way to tackle the problem.”