The market for strategic consulting firms - Italy

The global management consulting market has shown signs of recovery in 2021, with a valuation rising to $316.5 billion after dipping to about $148 billion in 2020 due to the COVID-19 pandemic. Expected to grow at a compound annual growth rate (CAGR) of 10.2 percent from 2022 to 2031, the market is projected to hit $811.3 billion by 2031. The retail sector leads the recovery with a revenue growth of approximately 14.5 percent between 2020 and 2021. The Italian market, with around 70,000 consulting firms generating €16.7 billion in revenue in 2020, also reflects this trend. Major growth was seen in management consulting, with 24,700 firms producing a turnover of over €5.1 billion and employing more than 52,000 people. Despite a pandemic-induced halt in 2020, the Italian consulting industry saw a resurgence in 2021 and possesses significant growth potential, particularly in the public sector, given that Italian consulting rates remain structurally lower than in other major European countries.

Navigating Evolution and Transformation: Trends in the Italian Consulting Market

The Italian consulting industry has been experiencing remarkable momentum, marred only momentarily by the pandemic's impact. Prior to the global health crisis, consulting firms in Italy had enjoyed a continuous streak of growth, effectively leveraging advancements in technology and digital transformation services to meet the dynamic needs of clients traversing through times of uncertainty and change. A resounding recovery echoed across the consulting landscape post-Covid-19, with the retail sector leading the charge, boasting a considerable revenue uplift of approximately 14.5 percent. However, the pandemic did cast a shadow with an 8.9 percent dip in business consulting turnover during 2020. The consulting market's clientele spans various company sizes. Notably, over half of the consulting services were procured by large firms with revenues exceeding 500 million euros. The public sector too carved out a considerable slice of the market, with central government bodies, local government entities, and healthcare administrations spending upwards of 468 million euros on consulting services.

The specialization in demand has evolved, with IT- and strategy-related consulting cornering 40 percent of the market, reflective of the overarching digital transformation wave. The propulsion towards digital is evident: large firms accounted for the majority of projects in this domain, with digital strategies and digital marketing as the forefront services. Concurrently, sustainability and green consulting have been emerging as pivotal areas, though presently still representing a smaller market segment. The competitive landscape is underlined by the dominance of large companies that deliver a substantial volume of digital and strategic consulting services. Contrastingly, small to medium-sized entities showcase their strength in finance and human resources, including training. These variations underpin the consulting firms' chosen areas of focus and expertise. As the industry moves forward, prices have undergone mild fluctuations, with an overall slight decline averaging nearly 0.9 percent annually over a ten-year period. However, in recent years, signs of stabilization and even price recovery have been observed, as firms begin to recalibrate their service offerings amidst a shifting business environment. The robust presence of global consulting giants further reinforces the industry’s hierarchy. Firms like McKinsey & Company, Boston Consulting Group, Bain.

Prominent Titans of the Consulting World: The Strategic Architects and Digital Vanguard

The consulting industry is a battlefield of wits, innovation, and strategic prowess, and at the helm are the colossal entities that not merely navigate but steer the market currents. These titans are illustrious not only for their massive scale but also for their extraordinary capabilities in shaping and transforming the businesses they touch. This chapter delves deep into the sanctum of these market shapers, exploring the main players who leave indelible marks on the tapestry of global consulting.

• The Big Three: Strategy Consulting's Elite Guard At the vanguard of strategy consulting, we encounter the formidable triad known as the 'Big Three' or MBB – McKinsey & Company, Boston Consulting Group, and Bain & Company. These firms command respect and admiration for their intellectual rigor and their ability to unravel the Gordian knots of business challenges. McKinsey, with roots that dig deep into the soil of New York, stands as the largest in personnel, beckoning the finest minds to its doors. Boston Consulting Group and Bain & Company, both hailing from Boston's intellectual bastion, are renowned for their cutting-edge strategic insights and their capability to montage a business's future with clarity and precision.
• The Big Four: Accounting's Behemoths and More Branching out beyond the realms of mere accounting, the 'Big Four' encompass Deloitte, EY, PwC, and KPMG, each a cosmos of expertise in its own right. These giants not only excel in number crunching but also in the multifaceted spectrum of strategic, management, and digital consulting. Deloitte stands with a presence so vast, it is almost ubiquitously interwoven with the fabric of global business infrastructures. London, the crossroads of old and new trade, lays claim to three out of four of these titans, with Deloitte, PwC, and EY (via EY-Parthenon, a testament to expertise in strategy) anchoring their global leadership in the city's resilient charm. KPMG, matching in prominence and scope, completes this quartet of consulting prowess.
• Niche Specialists and Digital Champions Not far from the spotlight, Booz Allen Hamilton and Oliver Wyman carve niches that are as distinct as they are impactful. Booz Allen Hamilton, based in Virginia, brings to the table a portfolio brimming with technology and engineering acumen.

Inforamtion

• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 12/04/2023

Summary and extracts

List of charts

• Annual change in global consulting market revenue in 2021, by sector
• Annual turnover of enterprises engaged in business consulting and other administrative-management consulting and business planning
• Number of enterprises active in business consulting and other administrative-management consulting and business planning
• Breakdown by legal form of the number of enterprises active in the field of business consulting and other administrative-management consulting and business planning
• Data on the size classes of the consulting industry in Italy
• Average pricing per day in Euros (three-year period 2019-2021)
• The leading consulting firms in the world, by degree of prestige
• Breakdown of purchases of consulting services by size of client company (year 2021)
• Breakdown of purchases of consulting services by type of client administration
• Distribution of sales by area of specialization
• Breakdown of turnover by area of specialization for large, medium and small consulting firms
• Percentage of consulting firms offering a given activity on sustainability/green