DACH consulting market heads towards a value of €10bn (€9.36bn in 2016)



The DACH consulting market recorded strong growth of 7.7% in 2016, up by almost one-and-a-half points over 2015, taking the market to a value of €9.36bn in 2016.


This is evidenced by a new report from Source Global Research, the leading research and strategy firm for the global management consulting industry. Germany and Switzerland made the biggest contribution to that growth, although there were still plenty of opportunities in the smaller Austrian market.


A solid economic performance certainly helped, with GDP growth rates across the DACH region of between 1.2 and 1.7% in 2016. “The economies in the DACH region are moving along nicely, and this is going to be an important basis going forwards. As long as economies are growing, consultants will do well,” explains Georg Tacke, CEO of Simon-Kucher & Partners. “In fact, I'd say the current scenario is perfect for consultants—there's a bit of uncertainty, but economic growth, too.”


Fiona Czerniawska, Director of Source Global Research said:
“The DACH market grew so strongly largely due to digitisation, which was a key factor in driving demand in many industries. Growth was particularly high in the large manufacturing market, and financial services often the bellwether of the health of a consulting market, also outstripped 2015’s already impressive growth rate by more than a percentage point.”


The Source report also found that consultants in financial services and manufacturing, the two largest industries for consultants—enjoyed a very strong year, as clients sought help with industry disruption and the creation of new business models. In both, the rate of growth was markedly higher than it was in the market as a whole. That interest in new technologies also benefitted consultants in retail and pharma & biotech, both of which grew strongly.


Strategy consulting only narrowly continued to be the largest service in DACH, worth €2.95bn, with risk & regulation the fastest growing service –and tech consulting doing well, too. “Demand for consultants is rising, especially related to technology. Because of everything digital, even consultants working in supply chain management or HR are faced with the expectation of certain digital standards that make them sweat”, said Tina Deutsch, Co-Founder & Managing Partner, Klaiton.


The Source report says that increasing productivity and efficiency is the initiative most likely to be driving work in organisations in DACH in the coming year, with 93% of clients planning to invest in this. Technology, both old and new—together with cost cutting—is also high on clients’ lists. This all tallies with a persistent pursuit of efficiency coupled with the realisation that digital is part of this imperative.

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