UK consulting sector nearly doubled in five years, key industry report finds
The UK consulting sector has experienced remarkable growth, nearly doubling in size over the past five years, highlighted in the Management Consultancies Association (MCA) annual report.
Independent research by Savanta reveals that the industry’s revenue surged from £10.56bn in 2018 to £20.4bn in 2023, positioning the UK as the second-largest consulting market globally.
MCA member firms reported an 11 per cent growth rate in 2023, with large firms leading the charge at 13 per cent. The report stated that this growth has been driven by an uptick in projects from sectors such as energy and resources (38 per cent), transport (13 per cent), and financial services (11 per cent).
The consulting workforce has also expanded significantly, increasing by 66 per cent from 30,000 employees in 2018 to over 50,000 in 2023.
However, there was a three per cent reduction from the previous year due to workforce adjustments and a slowdown in attrition – which has been highlighted from press coverage of notable job cuts at Big Four firms.
Tamzen Isacsson, MCA chief executive said: “During this taxing period of change and uncertainty, consultants are called upon as trusted advisers and sector specialists, offering experience and expertise, especially in tech, cyber security, and net zero.”
“Our sector is a great British success story, generating increased productivity and efficiency for UK-based businesses and proudly exporting record services overseas,” she said.
One key factor behind this is the growing international demand for UK consulting services.
As the report noted export of services has increased, with 28 per cent of UK fee income now coming from abroad, an increase of £3bn over five years. Europe remains a strong market, accounting for 15 per cent of fee income, while the US, Australia, Japan, and the UAE are also significant markets.
Diversity and inclusion have become focal points for the industry. The number of female leaders has increased by 10 per cent since 2018, with nearly a third of partners now women.
LGBTQ+ representation has also grown from 4 per cent to 7 per cent, while 6 per cent of consultants identify as having a disability, and 4 per cent with a neurodiversity condition.
The report goes on to highlights a notable shift towards regional growth within the UK.
For the first time, more new hires were recruited outside London than within it, with 52 per cent of new hires based outside the capital.
This trend is driving regional economic growth, with consulting firms expanding in cities like Manchester, Leeds, Bristol, and Edinburgh. Small and medium-sized firms have the highest proportion of employees outside London, reflecting a broader distribution of talent across the country.
Isacsson emphasised the importance of these developments, stating, “Our industry is increasingly becoming more representative of the society we serve. However, in a period of rapid change, our focus and efforts on this agenda remain vital, and more work needs to be done to ensure greater diversity at leadership levels.”
It is made clear that the consulting industry is undergoing a period of transition, focusing on reskilling its workforce in areas such as technology and sustainability.
On average, consultants spent 8.4 days on personal training and development in 2023, a 12 per cent increase from 2022, which includes training in generative AI.