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Q: Management Consultancy in the United Kingdom ( Answered,   2 Comments )
Question  
Subject: Management Consultancy in the United Kingdom
Category: Business and Money > Consulting
Asked by: consult-ga
List Price: $75.00
Posted: 24 Apr 2003 04:00 PDT
Expires: 24 May 2003 04:00 PDT
Question ID: 194714
What is the size of the management consultancy market in the United
Kingdom, with particular reference to the charitable and governmental
sectors?
Answer  
Subject: Re: Management Consultancy in the United Kingdom
Answered By: leader-ga on 24 Apr 2003 10:04 PDT
 
Hello consult-ga:

I did extensive research on your question and came out to the
conclusion that the answer to your question lies in the annual
management consultancy reports from The European Federation of
Management Consultant Association’s (FEACO) Survey and Management
Consultant Association’s Annual Survey.

I will provide you a link to these reports but first, I want to shed
some light onto these two associations.

The two associations are considered to be the foremost authority on
management consultancy in Europe. The FEACO http://www.feaco.org is
based in Brussels and MCA http://www.mca.org.uk is based in London and
affiliated with FEACO.

Talking about the links, you can easily get the MCO annual reports
from their website at http://www.mca.org.uk/index.cfm?gopage=reports
(Annual Reports 1996-2001). The FEACO report is available for 50 Euros
but I know links from where you can get this report for free.
Although, I am not entitled to provide you a link because FEACO states
that “No part of the publication may be reproduced, stored in a
retrieval system or transmitted by any means, electronic or
mechanical, without the prior written permission of
FEACO”…………………..BUT……………………. I know three or four websites that provide
you the report because they have the written permission. One of the
websites is MCA, itself at http://www.mca.org.uk. Once on main page,
scrolls down the quick navigation (jump to) bar at top and click on
‘statistics’. You will be able to see the FEACO’s report  (4th from
top) along with MCO’s reports.

If you get into any difficulty, let me know by clarifying. 

Although, these reports focus on European management consultancy
markets but the segments of the reports are also broken down by
countries. You can easily find the type of information you require for
UK.

Let me provide you a summary of what will you find in these reports
about UK besides the European Management consultancy market of other
European countries and Europe itself.

While, the MCO annual report (in this instance 2000) is more focused
on UK and does an in depth study of different management consultancy
sectors in UK, FEACO’s 1999 report (statistics about UK and other
countries) has:

Total Turnover in Billion of Euros
Number of MC firms
Average Growth Rate
Percentage of different management consulting markets broken into
segments.
Percentage of management consulting markets broken down into Private
and Government sectors. (with sub division).
Number of Management Consultants
Average Annual Earning per consultant
Number of large, medium and small companies and their shares.
Management consulting as a percentage of GDP
UK companies located in West Europe, East Europe and rest of the
world.
Average Annual Growth Rate by Country

>>>>> AND MORE.

Other useful links are:

http://www.managementconsultancy.co.uk
www.imc.co.uk/

Search Strategy:

Management consultancy statistics
UK management consultancy market
UK management consultancy
Management consultant associations

I hope you will find the studies useful. If you have any difficulty,
please clarify.

Sincerely,
Leader-ga.
Comments  
Subject: Re: Management Consultancy in the United Kingdom
From: leli-ga on 25 Apr 2003 02:14 PDT
 
Hello consult-ga

Yesterday I started working on this but had to stop before completing
an answer. I am posting my notes, in case you can make use of
something.

One source of information on government spending is the National Audit
Office.

In 2000 central government spent over £0.6 billion on consultancy, at
least £231 million of that on management consultancy.  In fact, it
could have been more since "Departments were unable to allocate the
remaining 43 per cent (£263 million) [of money spent on professional
services] to particular categories."

Purchasing Professional Services
REPORT BY THE COMPTROLLER AND AUDITOR GENERAL
HC 400 Session 2000-2001: 25 April 2001
http://www.nao.gov.uk/publications/nao_reports/00-01/0001400es.pdf
______________________

Another source is the Office of Government Commerce.

Management consultancy is an increasingly important industry for the
UK economy with revenues for 2002 estimated at £8bn, contributing £1bn
to the UK balance of payments.

The Management Consultancies Association (MCA) was formed in 1956 and
represents the leading UK-based consulting firms, which currently
employ over 25,000 consultants and generate over £4bn in annual fee
income. Their members earn somewhat more than half the revenues for UK
management consultancy.

"Delivering world-class consultancy services to the public sector"
OGC  MCA   IMC
http://www.ogc.gov.uk/embedded_object.asp?docid=2883
_______________________

The MCA's most recent report is not available but their report on 2001
says that the public sector in 2001 brought in 13 per cent of their
members' total fee income compared to 9 per cent in 2000. It generated
£509m as compared with £3271 in the private sector.

Public sector earnings in 2001 showed a 53% rise over 2000. (for MCA
members)

                       1999      2000     2001    %Increase
                       (£m)      (£m)     (£m)
PUBLIC SECTOR
Central Government     437      242      420      73%
Local Government        13       66       51     -22%
Other Public Bodies     10       13       14       8%
International Agencies   4        7        4     -42%
NHS                      6        4       20     400%
Total                 470      332       509       53%


MCA report on 2001
http://www.mca.org.uk/mcareport2001.pdf
_______________________

July 2002 figures for revenue earned by leading management consultancy
firms in a) central government and
b) local government & NHS
http://static.accountancyage.com/bif_static/pdf/mctable5.pdf
_____________________

Search for detailed information on government departments' spending on
management consultants:
://www.google.co.uk/search?hl=en&ie=UTF-8&oe=UTF-8&q=site%3Awww.parliament.the-stationery-office.co.uk++%22management+consultants+OR+consultancy%22+spending+OR+expenditure+OR+million++2001&btnG=Google+Search&meta=
_______________________

Here are links to much of the available information about management
consultancy in the UK voluntary/charitable sector:
http://www.volresource.org.uk/services/serv_cns.htm
But there are few, if any, financial details to be found.


Leli
Subject: Re: Management Consultancy in the United Kingdom
From: leader-ga on 25 Apr 2003 06:10 PDT
 
Thanks leli-ga for your comments and help with my answer.

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