The consulting industry, a major recruiter of MBA graduates, has bounced back in 2011 from the dismal days after the economic crisis in 2009 when the global consulting industry contracted by 9.1%. The research firm Kennedy Information reported that 2009 was the worst year for the consulting industry since 1982.
The projects that consultants are working on this year are more profit-oriented as well. In 2009, 87% of projects were aimed at cutting costs, while in 2011, 53% of project spending for consultants will be focused on business growth plans.
Not all consulting sectors are expected to grow at the same rate though. Growth for spending on strategy consulting is forecasted to expand by only 1.1% a year between 2011 and 2014, while consulting on operations management will grow by an annual average of 5.1% and IT consulting by 3.9% a year to 2014.
Of the elite strategy consultancies, BCG had the best 2010 with 12% growth. But the major players are getting more and more competition by the Big Four audit firms that continue to aggressively expand and mid-sized firms that offer experienced independent consultants at lower rates.