Among mid tier firms Keane re ported its 1Q02 revenue increased 9 over 1Q01

Among mid tier firms keane re ported its 1q02 revenue

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Among mid-tier firms, Keane re- ported its 1Q02 revenue increased 9% over 1Q01 levels, signaling successful repositioning of the firm as an ASP outsourcer. The news follows three failed attempts to redefine the Y2K practice. ALMOST 70% OF CIOS HAVE POSITIVE OUTLOOK ON THEIR COMPANY’S BUSINESS 09/01 10/01 11/01 1/02 02/02 Note: No survey taken in December ‘01 70% 60% 50% 40% Source: Morgan Stanley CIO Survey LONDON – The UK’s 40 leading firms grew by a staggering 17% in 2001, generating $6.2 billion in fee income. The growth is primarily due to a 50% increase in outsourcing fees, according to the UK Management Consultancies Association, whose members represent about half of the UK’s total consultancy revenues. “After a dip in the third quarter, MCA revenues seemed to pick up again in the fourth quarter and all the indications are that the worst of the economic slowdown could be over for the consulting indus- try,” says MCA president, Tony Smith. Split by service revenue in the UK, outsourcing was the largest practice, fol- lowed by corporate strategy work, which grew 2% to $717.9 million; IT systems development, up 4% to $696.4 million; and IT consultancy, up 1% to $670.7 million. Project management also experienced a significant gain, up 236% to $573.4 million, reflecting de- mand for benefits realization and cost reduction work. Banking, insurance and financial services were the biggest users of con- sulting services through 2001, followed by distribution, hotels and retail. While the majority of MCA revenues are generated in the UK, members’ non- UK fee income rose 13% in 2001. In- creases in the Americas (up 54% to $290.3 million) and Asia (up 28% to $64.4 million) offset drops in Europe. Despite weakening recruitment through 2001, the number of consult- ants employed by MCA members in- creased 24% to 25,798. “A more intelligent and experienced purchaser of consultancy has emerged. The MCA consultancy purchasers sur- vey found that 84% of those ques- tioned had a preferred list of consul- tancy firms compared to only 44% in 1995,” Smith says. “Clients are in- creasingly turning to consultants for innovative thinking rather than just to fill a skills gap and 96% prefer some form of relationship with their consul- tancy firm rather than keeping them at arms length.” The so-called “European” market for con- sulting is in reality a patchwork of markets, each with its own approach to purchasing consulting services and with distinct service delivery requirements. Recommended ap- proaches, key drivers, market growth projec- tions and more are contained in Kennedy Information’s latest report, Management Consulting in Europe 2002-2005 . For more information, contact John Egyed, (603) 924-0900 ext. 667. UK’s leading firms grew fees 17% in 2001 E U R O P E A N N E W S
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Global IT Consulting Report, May 2002. ©Copyright Kennedy Information, Inc., 800-531-0007. All Rights Reserved. Reproduction prohibited by law. 10 PwC faces challenging transformation to public company (continued from page 1) skyrocketing (up 40% in FY98, up 27% in FY99 and up a more modest 14% in FY00), the firm is now hurt- ing. PwC Consulting grew by just 3% in FY01, which ended in June. Be-
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