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

3. Drivers of Growth Economics Corporate issues Client challenges
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 and North America Dominate the Market
Consulting Market Share by Geographic Region
Source: Kennedy Information, The Global Consulting Marketplace 2006: Key Data, Trends & Forecasts

5. Highest Growth Rates Experienced by Smaller Firms
Growth Versus Size – Global Management Consulting Practices
Source: Kennedy Information, The Global Consulting Marketplace 2006: Key Data, Trends & Forecasts

6. Consulting Market Growth by Geographic Region
Highest Growth Rates Experienced in 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
Trends
Energy & Chemicals
High profitability is resulting in larger consulting budgets
Midsize players are determining corporate strategy and business models
Mega companies are focused on executing high-risk growth moves
Healthcare
Growth rates will slow slightly through 2009
Quality improvement remains a focus for providers
Pharma is looking past blockbuster drugs for growth
Financial Services
Projects include making large-scale investments in IT infrastructure and improving automation
Technology is being used to improve sales and customer delivery

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

11. Demands on Consultancies from More 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

13. Thank you! Contact Information
Paul Gronwall
Kennedy Information