SOURCE: Kennedy Consulting Research & Advisory

Kennedy Consulting Research & Advisory

January 18, 2011 10:50 ET

New Regulations and Changing Buyer Behavior Forcing Financial Consultancies to Focus Services, Adapt to More Specific Client Needs

Kennedy Finds Market Challenges Are Fueling Demand for Narrower, More Defined Offerings Across Industries and Geographies

PETERBOROUGH, NH--(Marketwire - January 18, 2011) - Demand for Financial Consulting has always been driven by a combination of regulatory agendas, consulting service innovations, and business cycle forces. All that changed with the global economic crisis. Governments around the world reacted with strong rhetoric and actions about their intent to more closely monitor compliance and effectively enforce a wide range of regulations.

According to new research from Kennedy Consulting Research & Advisory, Financial Consulting Marketplace, analysts have also found that, as the market matures, the breadth of opportunity for new services will not disappear but become narrower and more directed to refinement of existing offerings. At the same time, clients have become more savvy in their patterns and are buying rather than being "sold to." There is a tendency now for clients to know what they need and go out to secure the advisors who can deliver the services to meet those specific requirements. Instances of "runaway" projects are few and far between.

"Even in FC -- one of the growth engines of consulting overall -- gains will be moderate compared to those of recent history," according to Lynne Schneider, Associate Director at Kennedy Consulting Research & Advisory. "And for perhaps the first time, practices are paying more attention to profitability and business optimism measures in order to gauge future demand."

The data also shows that, FC practices find themselves competing in a landscape where services are better defined, firms are sometimes hard to distinguish from one another, and the market is being approached in a global fashion. Therefore, in an effort to stave off price sensitivity and loss of differentiation, even relatively small practices are rapidly moving to cover the globe.

Financial Consulting Marketplace rates the competitive capabilities of today's leading Financial Consulting providers and assesses their capabilities in terms of both breadth and depth. Among the firms profiled in Financial Consulting Marketplace 2010-2013 are: AlixPartners, Alvarez & Marsal, BDO International, Begbies Traynor Group, Crowe Horwath International, Deloitte, Ernst & Young, Ferrier Hodgson, FTI Consulting, Grant Thornton International, Huron Consulting Group, KPMG, LECG, Navigant Consulting, Nexia International, Praxity, PricewaterhouseCoopers, Protiviti, and RSM International.

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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