SOURCE: Kennedy Consutling Research & Advisory

Kennedy Consulting Research & Advisory

October 19, 2010 12:08 ET

HR Consulting Now Facing Commoditization and Pricing Issues Already Experienced by Other Markets

Kennedy Finds HR Consultancies Are Being Forced to Plot New Directions in the Market or Else Risk Becoming Casualties of the Changing Times

PETERBOROUGH, NH--(Marketwire - October 19, 2010) -  The maturing HR consulting landscape, historically characterized by relative stability, is facing commoditization and price sensitivity issues already experienced by other markets. What's more, the need for traditional retirement benefits consulting services is diminishing as employers shift the cost and responsibility for retirement funding to employees.

According to new research from Kennedy Consulting Research & Advisory, HR Consulting Marketplace, analysts have found that market changes at a fundamental level are pushing consultancies to become larger and broader in their services orientation.

"To thrive or merely survive in an environment characterized by lackluster demand, HR consultancies must innovate and pursue multi-pronged approaches to growing their organizations," according to Derek Smith, Senior Director of Research at Kennedy Consulting Research & Advisory. "In the longer term, leading consultancies will be challenged to reshape their businesses to remain relevant in a maturing market where service commoditization is an ever-present threat."

Other key findings indicate that periods of high unemployment seriously diminish the need for talent management services -- lowering demand for recruitment, assessment, training and other human capital concerns. Meanwhile, large-scale regulatory change, such as US healthcare reform, will help drive demand for healthcare consulting during the forecast period.

HR Consulting Marketplace rates the competitive capabilities of today's leading HR Consulting providers and assesses their capabilities in terms of both breadth and depth. Among the firms profiled in HR Consulting Marketplace 2010-2013 are: Accenture, Aon Consulting, Buck Consultants, Deloitte, Development Dimensions International (DDI), Ernst & Young, Hay Group, Hewitt Associates, IBM, Lee Hecht Harrison, Mercer Consulting, Milliman, Morneau Sobeco, PricewaterhouseCoopers, Sibson, and Towers Watson.

About Kennedy Consulting Research & Advisory

Since 1970, Kennedy Consulting Research & Advisory has been the world's leading source of market analysis on the Management and IT consulting industries, serving the most highly regarded professional services firms and Fortune 500 companies across the globe. Kennedy's stand-alone consulting advisory unit, Kennedy Information Advisors, provides results-oriented strategic guidance to buyers and sellers of consulting services.

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