☛ Want the latest procurement and supply chain news delivered straight to your inbox? Sign up for the Supply Management Daily
7 February 2013 | Adam Leach
It’s not only IT departments who are expected to spend more money on technology consultants this year. HR, operations and other teams are also anticipating a rise.
The Source Information Services survey, published this week, was based on the responses of more than 800 senior users and buyers of consulting. It found that 56 per cent expect their spend on this area to increase over the next year, while just 14 per cent anticipate a cut.
The study also found that spending in this category will broaden across departments, with chief operating and human resources officers in a number of companies expected to fork out for support as they adopt initiatives such as ‘bring your own device’.
According to the research, 86 per cent have growth initiatives planned for 2013, with many planning to buy in consultancy to support expansion. Fiona Czerniawska, co-founder of Source Information Services, said: “The growth agenda continues to gather momentum among clients. Keen though they may still be to keep a firm lid on costs, for most growth is now an imperative.
“This represents one of the biggest opportunities for consulting firms at the moment, but for many it will manifest itself as demand for more traditional back-office consulting around technology, for instance, or operations.”
More generally, the poll revealed that 49 per cent expect to increase overall consultancy spend, with a quarter saying it’s likely to increase by 10 per cent or more. Buyers in the energy and natural resources sectors are predicting a particularly sharp rise in spending. Consulting on operational improvement and business strategy is expected to rise, while demand financial management and control support is predicted to rise only marginally.
Last month, a survey by the Management Consultancies Association estimated growth of 5 per cent in consultancy fee income for 2013. The survey also found that 77 per cent of firms expect to grow over the course of the year. However, the number expecting high levels of growth is down from 2012.