Management consulting can be defined as the rendering of independent advice and assistance about management issues.

This typically includes identifying and investigating problems and opportunities, recommending appropriate action and assistance with the implementation of the recommendations.

Recent trends:

Management consultancy is a fast changing world where new players, disciplines and capabilities are continuously being integrated into the profession; where borders continue to be expanded and horizons recede until our business becomes global network of different businesses, covering a wide spectrum of areas not even imagined only a few years ago.

Recently, more than ever, the world has shown that it is a place of never ending and accelerated change. It is the challenge of management consultants to gain of change an advantage. Over the years management consultancy has evolved and adapted to change and the new opportunities it offered. On the one hand, global firms have adopted a multidisciplinary approach for the purpose of encompassing broad aspects of integrated consulting, the aim of which is to design and implement complete solutions to their clients' problems and business opportunities.On the other hand, smaller consulting companies are developing that focus on niches of activity, capable of providing excellent services in specific areas, industries and markets.

In parallel, the consulting industry continues to evolve through new players and services, which enter the industry and challenge the old status quo, causing even some long-established players and familiar names to disappear or to concentrate as a result of mergers and acquisitions.

At the same time new financial structures are developing and are a requirement in order to remain competitive, leveraging the capital markets away from the traditional partnerships.

The economic recession of 2001 had a great impact on the management consulting industry. The general economic malaise caused companies to refrain from any investment into new developments. Projects became shorter, and most of them were aimed at cost sutting and consolidation of companies. For the first time, after many years of double digit growth the management consultancy sector reported a market decrease. Not until 2004 did most European markets begin to report slight growth again. Double digit growth was not registered until 2006.

The crisis years resulted in many mergers and acquisitions among consulting firms, a surplus on the supply side and of consultants on the market. 2006 marked the start of increased investment and demand and a 'war for talent.' One of consulting companies' prime occupations is to retain talent.

The consulting market is polarised: it has a small number of very large, multinational, multidisciplinary players and a very high number of very small, often highly specialised niche players.

Consulting is a global profession, which is provided locally. Consulting companies need local staff, with knowledge of the local market and local culture and language, to provide their services anywhere over the world. Networking is therefor of prime importance for consultancies who wish to expand their market.

FEACO European Federation of Management Consultancies - Associations Fédération Européenne des associations de conseils en organisation