SOURCE: Kennedy Consulting Research & Advisory

Kennedy Consulting Research & Advisory

August 18, 2009 12:16 ET

Revolutionary Regulatory Environment Pushes Companies to Pursue HR Consulting as a Preemptive Strike

Benefits Consulting Growth Alone Expected to Exceed $.6 Billion Over the Next Two Years

PETERBOROUGH, NH--(Marketwire - August 18, 2009) - Employers in the US and the UK face a number of changes to regulations on pensions and retirement accounts. Emerging markets, such as China, are ramping up requirements, as well. According to industry research firm Kennedy Consulting Research & Advisory, this flood of new and revised regulations promises to be the preeminent driver of client demand for HR consulting, specifically for consulting services in and around benefits and actuarial work.

To meet their fiduciary responsibilities, client organizations must provide ongoing communication to employees on the impact new federal rules have on their retirement plans. Employers are compelled to manage their retirement and healthcare benefits programs with an eye on risk as well as leveraging their total rewards to attract and retain their top talent.

"As regulatory mandates evolve," said Mary Ann Bui, Senior Research Analyst, Kennedy Consulting Research & Advisory, "consultancies are called upon not only to keep organizations informed of changes to legislature but also to implement these edicts in balance with their client's perspectives and goals."

Of all three HR sub-segments -- Talent Management, HR Technology and Benefits -- Benefits currently takes up the largest portion of market share and is expected to reach $12.51 billion in 2011, according to Kennedy's "HR Consulting Marketplace 2009-2011." As a whole, HR consulting has a market size of $21.4 billion and will grow at a CAGR of 3.9% through 2011.

In addition, "HR Consulting Marketplace 2009-2011" names the top five firms that trump all others in the HR consulting competitive arena. Of the 22 firms rated, Kennedy analysts indicate 12 firms as advancing in service breadth or depth, and only two firms as diminishing. Among the HR consultancies rated for this research are: Mercer, Watson Wyatt, Deloitte, Hewitt, Towers Perrin, Aon, Buck, PwC, Accenture, Hay Group, Milliman, IBM, Atos Consulting, KPMG, Right and Segal Group.

About Kennedy Consulting Research & Advisory

Since 1970, Kennedy Consulting Research & Advisory, a division of Kennedy Information, has been the world's leading source of market analysis on the Management Consulting and IT Consulting industries, serving the most highly regarded professional services firms and Fortune 500 companies across the globe.

Kennedy provides accurate and reliable market sizing and forecasts for consulting services world-wide; needs analysis and vendor profiling for buyers of consulting services; timely and insightful intelligence on the top consulting firms in their respective markets; and operational benchmarks that measure consulting performance. Kennedy's research spans multiple service areas, client vertical industries, and geographies.

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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