Global

1
Global US Trends in Management Consulting

• FEACO European Annual Conference
• Paul Gronwall
• 8 November 2006

2
Consulting Market Highlights

• Boost from local economic growth
• High growth rates in developing markets

Return to Growth

• Assistance with globalisation
• Pent-up demand for services

Client Demand

• Energy prices
• Political uncertainties
• Regulatory impacts

Ongoing Challenges
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Drivers of Growth

• Economics
• Rising GDPs in both industrialised and developing
  economies
• Increasing FDI in some markets
• Corporate issues
• Ageing IT infrastructure
• Pent-up demand since post-90s slump
• Client challenges
• Global competitiveness
• Talent acquisition and retention

4
Europe/Middle East/Africa andNorth America
Dominate the Market
Consulting Market Share by Geographic Region -
2005
Source Kennedy Information, The Global
Consulting Marketplace 2006 Key Data, Trends
Forecasts
5
Highest Growth Rates Experiencedby Smaller Firms
Growth Versus Size Global Management Consulting
Practices
Source Kennedy Information, The Global
Consulting Marketplace 2006 Key Data, Trends
Forecasts
6
Highest Growth Rates Experiencedin Less Mature
Markets
Consulting Market Growth by Geographic Region
Source Kennedy Information, The Global
Consulting Marketplace 2006 Key Data, Trends
Forecasts
7
Elements of Client Demand

• In developed economies
• Assistance with aggressive globalisation
• Sourcing strategies and outsourcing advisory
• In developing economies
• Global clients seeking new customers and low
  costs
• Local fast growing companies interested in
  best-practice benchmarks and opportunities to
  expand across borders
• Business issues
• Increased regulations
• Ageing workforce
• Balancing growth and cost management
• Working with empowered customers

8
Elements of Demand by Client Industry
9
Public Sector and Financial Services Consulting
Dominate the Market
Consulting Market Share by Client Industry
Source Kennedy Information, The Global
Consulting Marketplace 2006 Key Data, Trends
Forecasts
10
Variables Affecting Client Spending

• Energy availability and prices
• Rising costs increase revenue in some client
  sectors and reduce margins in others
• Political risk
• Uncertainty affects clients long-term
  perspectives and willingness to invest
• Immediacy of impending regulations
• Perception of talent issues

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Demands on Consultancies fromMore Experienced
Clients

• Best-in-class services
• Selection of individual consultants
• More senior talent
• Global presence
• Firm presence in all locations where client does
  business
• Solutions with global applicability
• Local knowledge
• Understanding of local business and culture
• Language skills

12
New Challenges for Consultancies

• Global complexities
• Knowledge management
• Human resource management
• Systems and platform integration
• Competitive pressures
• Unique approaches and solutions
• Competitive pricing and associated staffing
  models
• Client buying and managing of engagements
• Use of purchasing departments
• Involvement of former consultants

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Thank you!Contact Information
Paul Gronwall Kennedy Information pgronwall_at_kenned
yinfo.com www.consultingcentral.com