A new report has found that the Spanish consulting market expanded by almost 6 per cent during 2016 to reach a market value of €1.28billion. A slow-but-steady improvement in the domestic economy, combined with clients’ renewed interest in growth initiatives, has left many consultants confident that the market has turned a corner and is likely to remain strong for several years.
A return to stronger growth over the last two years is in stark contrast to the recent performance of the Spanish consulting market, where a 3 per cent slump in revenues was recorded in 2012, and a mere 0.8 per cent growth in 2013.
However, the report from Source Global Research, the leading research and strategy firm for the global management consulting industry points out that it’s not all good news in 2016, as consultants are having difficulty raising the bargain-basement prices they were forced to adopt during the economic downturn. Source says that there are fears that prices will remain low in Spain even as the economy recovers. Price pressure is particularly acute in the beleaguered public sector consulting market, which endured a flat year in the face of a tumultuous domestic political environment.
The report also reveals that the financial services industry was Spain’s fastest growing consulting market last year, with strong demand for services ranging from cost cutting and efficiency to customer experience improvements, all employing digital technology. However, the report does note that Spain continues to lag behind other mature economies in terms of its digitisation agenda and the impact of this on consulting.
The risk & regulatory service line grew the fastest as both regulatory compliance and cybersecurity generated a good deal of interest. Technology remained the biggest consulting service line in Spain, and in 2016 it was one of the fastest growing as demand for digital continued to rise.
B.J. Richards, Senior Editor at Source Global Research said:
“Although the Spanish consulting market has once again recorded healthy growth, the combination of endemic low prices and demand for end-to-end digital delivery is putting pressure on the consulting business model. In response, many firms are forming partnerships and ecosystems, both with fellow consulting firms and with other professional services providers, in order to provide clients with the one-stop shopping experience they want.”
Cristóbal Escoda Cano, Managing Director at NAE, added:
“While big firms may have the money to buy lots of companies to broaden their services, I think they still run into the same problem—they can’t buy everything. We’re actually partnering with some of the larger firms because they see that we complement them and the same with smaller and more specialised ones.”
The Source report also found that the largest firms in Spain were also the fastest-growing in 2016, as clients appreciated their breadth of services and international footprints. Many smaller players also enjoyed a good year, with clients seeking out their niche expertise and higher degree of agility. A growing interest in digitisation helped ensure that technology firms performed best last year.
As 2017 has proven to be another solid year so far, Source forecasts a similarly strong performance in 2018, with a growing interest in digitisation set to serve consultants well over the next few years.
For more information on Source reports contact firstname.lastname@example.org or telephone +44 (0)20 3178 6443 or visit www.sourceforconsulting.com.