By Kennedy Intelligence Team
Published November 21, 2024
Kennedy Intelligence is finishing the year with our Key 2024-25 Consulting Market Themes roadshow.
Kennedy's senior analysts end the year attending analyst summits and leadership presentations reviewing the latest trends that will shape the consulting industry in 2025. Our senior analysts have had active discussions with leadership teams of global providers of consulting firms, boutique consultancies, and their investors to consider these developments in the context of their own strategic objectives.
What are some of the key consulting industry trends that we’re discussing and reviewing in the context of 2025 consulting leadership strategies?
A New Normal Emerging as Consulting Market Growth Trends Towards Mid-Single Digits.
Wide variations between flat growth for traditional In-Function and Top-Down services versus high-single-digit to low-double-digit growth in Cross-Functional and Data-Forward offerings. AI is driving higher consulting productivity and increased throughput, but the economic gains are mostly feeding improved margins and lower-cost services not higher volumes.
Consultancies Sustaining Pace of Investment in New Capabilities, particularly Technical Expertise. The change in 2024 was a notable increase in investments in engineering-related disciplines offset by a pullback in growth-focused business building investments. Translating investments into client recognition of new capabilities is extremely challenging absent meaningful changes to the organization and go-to-market strategy.
Clients Spend to Keep the Lights On; Conserving Resources to Respond to Volatile External Environment rather than Commit to Big Bets. Risk elevated alongside growth as dominant topics at the corporate level. Spending momentum for core front, middle, and back-office transformation migrates to functional leadership. Client strategic agenda filters into spending through demand for consultant roles. Notable uptick in demand for technical expertise and technology platform services.
Consultant Go-to-Market Strategies Become Essential Differentiator to Capture Narrow Growth Pockets. increasing demand for Cross-Functional offerings that deploy domain expertise across the value chain. Data-Forward offerings holding steady, after experiencing strong gains over the past three years. Top-Down strategies lose share. Kennedy Consulting Compass and Market Map track consultancies’ abilities to translate new capabilities into improved market position and avoid the “Engagement Trap.”
If you’re interested in discussing these evolving consulting sector themes and more with our team, or if you would like to enquire about our annual Kennedy Consulting Navigator industry report or bespoke intelligence services, please get in touch.
Please note: This article is for educational and informational purposes only and does not
constitute investment, tax, or legal advice. The intelligence has been gathered from a variety of public and non-publicly available sources. The views and opinions expressed in this article are those of the author and do not represent the views of any affiliate organization.
Any opinions or views expressed are as of the date written and are subject to change without notice and may be updated or modified at any time.
