Key Takeaways:
- Rising Complexity of Projects: Consulting firms identify increasing project complexity as their greatest threat, coupled with the need for skill development and adapting to client expectations.
- Surge in Technology Investment: A substantial 73% of consultancies plan to boost their investment in emerging technologies, signaling a significant shift towards digital transformation.
- New Corporate Priorities: Consulting firms are placing more emphasis on Corporate Social Responsibility (CSR), Employee Wellbeing, Diversity, Equity and Inclusion (DEI), and Environmental, Social and Governance (ESG) initiatives.
The consulting industry is at a crossroads, facing heightened project complexities and evolving client expectations. Deltek’s latest report, “Digital Trends: Unlocking Growth for Project-Based Firms,” sheds light on how consulting firms are turning to digital transformation as a strategic solution.
The Challenge of Complex Projects
Perceived Threats to the Consulting Industry
Consulting firms are increasingly perceiving complex project management as a significant challenge. Alongside this, developing the right skills and knowledge and keeping pace with changing client expectations are also seen as critical hurdles.
Responding to Inflation and Economic Pressures
The current economic landscape, marked by high inflation and geopolitical uncertainties, is further complicating project management, necessitating a leaner approach to budgets and operations.
The Digital Transformation Drive
Increasing Investment in Emerging Technologies
A notable trend in the consulting sector is the surge in investment in technology. With 31% of firms planning a significant increase in their technology budgets, there’s a clear recognition of the transformative potential of digital solutions.
Overcoming Implementation Obstacles
Despite the enthusiasm for technological adoption, firms face considerable challenges, including inadequate training, limited resources, poor planning, and a lack of stakeholder buy-in.
Neil Davidson’s Insights
Neil Davidson, Group Vice President of the Professional Services Sector at Deltek, emphasizes the importance of digital transformation in addressing the growing complexities of projects. He notes the critical role of technology in resource management and organizational change.
Shifting Corporate Priorities
Emphasis on CSR, DEI, and ESG
The consulting industry is witnessing a shift in focus towards CSR, Employee Wellbeing, DEI, and ESG. More than half of the firms surveyed are now placing greater importance on these issues.
The Evolution of Consulting Firms
This shift indicates a broader change in the consulting landscape, with firms increasingly recognizing the value of social responsibility and inclusivity in their operations and corporate culture.
Growth and Profitability Outlook for 2023
A Profitable Year Ahead
Despite the challenges, consulting firms are optimistic about profitability in 2023. This positive outlook is fueling plans for workforce expansion and talent acquisition.
Casting the Net for Global Talent
The industry is set to grow, with many firms looking to significantly increase their workforce sizes, potentially tapping into a global pool of talent to meet their evolving needs.
Methodology: Unpacking the Survey
Comprehensive Industry Survey
Deltek’s survey, conducted among senior decision-makers from consulting firms, provided valuable insights into industry trends, challenges, technological adoption, and corporate strategies.
About Deltek
Leading the Charge in Enterprise Software
Deltek, a global leader in enterprise software and information solutions, caters to project-based businesses. Its expertise in project intelligence and management is crucial for consulting firms navigating the digital transformation landscape.
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