The market for strategic consulting firms - Italy (2024)

1.2 World Market

The value of the global market for business consulting firms shows steady growth from **** to ****. Starting from $***.** billion in ****, it is expected to reach $***.** billion in ****. This represents an increase of **.* percent over the period, with a compound annual growth rate (***) of *.** percent. The growth of the consulting services market is influenced by several factors. Increasing complexity of business operations, evolving technologies, and an increasing focus on strategic decision-making are driving demand. Companies are seeking external expertise to address challenges, implement digital transformations and improve overall efficiency. Globalization, regulatory changes and the need for innovative solutions also contribute to market expansion. In addition, increasing awareness of the benefits of consulting services among small and medium-sized businesses further fuels market growth.

Global market value of business consulting firms World, ****-****, in US$ billion ModnorIntelligence

With the growing impact of technology on business operations, consulting firms plan to incorporate technology and data analytics into their services to help clients stay ahead of the curve. Technology-based consulting leverages advanced technologies such as artificial intelligence, machine learning and data analytics to help clients solve complex business problems. This type of consulting helps organizations make data-driven decisions, automate manual processes and increase overall performance. Consulting firms ...

1.3 The European market

The value of the European market for consulting firms shows continued growth from **** to ****. In ****, the market was worth $***.** billion, while in **** it is expected to reach $***.** billion, an increase of **.* percent over the period, and a CAGR of *.** percent.

European market value of consulting firms Europe, ****-****, in US$ billion MondorIntelligence

Increasing investments in innovative technologies, adoption of advanced business intelligence and data management methods by various organizations, economic changes, government-led diversification projects, and digitization, among others, are the main drivers of the European consulting services market. In addition, AI and automation are revolutionizing the way business consultants analyze data. As AI and automation help consultants handle processes such as processing and analyzing huge amounts of data much more efficiently and quickly than the average human, they can also offer accurate insights into business areas such as operations, sales, supply chain, and more. Such developments are expected to fuel market growth over the forecast period. As companies grapple with the complexities of compliance, evolving European regulations are driving the consulting market. The changing and more stringent regulatory landscape, especially in areas such as environmental standards and data protection, is driving companies to seek specialized expertise.

The consulting industry in Europe ...

1.4 The Italian market

From **** to ****, the turnover of management consulting companies in Italy increased significantly, from *.** billion euros to *.* billion euros. This represents an increase of **.*%. After a slight decline in ****, probably due to the effects of the pandemic, the sector has shown a robust recovery, with steady growth until ****. The most pronounced increase is seen between **** and ****, where turnover grew by **.* percent.

Turnover Management Consulting companies Italy, ****-****, in billions of € Assoconsult

The data show a change in the value of production of management consulting firms in Italy from **** to ****. Large firms see an increase from **.* percent to **.* percent in ****, followed by a significant drop to **.* percent projected for ****, an overall decrease of **.* percent from ****. Medium-sized businesses experience a similar fluctuation, with an increase to **.* percent in **** and a forecast of *.* percent in ****, resulting in a **.* percent decrease. Small businesses, after growth from **.* percent to **.* percent in ****, show a declining forecast to **.* percent in ****, a reduction of *.* percent from ****. Micro enterprises maintain an increase from **.* percent to **.* percent in ****, but experience a sharp decrease to *.* percent projected for ****, an overall decrease of **.* percent. Nationwide, the value of production increases from **.*% to **.*% in ****, but is projected to decline to **.*% in ****, indicating a **.*% decrease from ...

2.1 Overview of demand

In ****, market shares of the main consulting specializations in Italy see IT Consulting in first place with **.*%. Strategy follows with **.*%, while Risk Management & Compliance accounts for **.*%. Financial & Performance Management and Operations stand at **.* percent and **.* percent, respectively. The areas of Marketing & Customer Management and Human Resources & Change Management are less preponderant, with shares of *.* percent and *.* percent. This landscape shows a strong demand for IT Consulting and Strategy, while the other specializations, while significant, have a lower presence in the market.

Market shares of the main specializations Italy, ****, in % Assoconsult

In ****, the market shares of the main client sectors for consulting in Italy see industry in first place with **.* percent, followed by banking with **.* percent. The public and healthcare sectors account for **.* percent, while energy and telecommunications stand at *.* percent and *.* percent, respectively. Other services make up **.* percent of the market. This indicates that the industrial and banking sectors dominate the demand for consulting, together covering more than half of the market, while the other sectors, while significant, have less impact.

Market shares of major client sectors Italy, ****, in % Assoconsult

Between **** and ****, the market composition by client sectors of consulting firms in Italy showed significant changes. The share of services increased ...

2.2 Type of clientele in the private sector for consulting services

In ****, the demand for consulting from private enterprises derives:

**% from very large client enterprises **% from very large client enterprises **% from small to medium-sized client enterprises.

To very large and large client enterprises, consulting is largely provided by large consulting firms. To small-to-medium-sized client enterprises, consulting is provided overwhelmingly by small-to-medium-sized consulting firms.

Breakdown of purchases of consulting services by size of client firm (***) Italy, ****, in % Source: ****

In ****, the breakdown of purchases of consulting services by size of client firms in Italy shows a clear preference of large consulting firms among very large clients, with a share of **.* percent. Even among very large clients, these companies dominate with **.* percent. In contrast, small and medium-sized clients have a greater preference for small- to medium-sized consulting firms, which hold **.* percent of the market in this segment. This points to a tendency for larger firms to rely on more prestigious consultants, while smaller firms opt for more specialized or flexible providers.

2.3 Type of clientele in the public sector for consulting services

In ****, the demand for public sector consulting derives: **% from Central Government (***) **% from Local Governments ** percent from Health Care. In Health and Central Government, consulting is largely provided by large consulting firms. In Local Government, consulting is provided in a fairly balanced manner by large and medium-small consulting firms.

Breakdown of purchases of consulting services by firm size (***) Italy, ****, in % Assoconsult In ****, the breakdown of purchases of consulting services in the public sector in Italy shows a clear preference for large consulting firms, especially in healthcare, where they reach **.* percent. Central governments also tend to turn mainly to large consultants, with a **.* percent share. Local governments, on the other hand, show a more balanced distribution, with **.* percent of purchases made from large consulting firms and **.* percent from small to medium-sized firms. This indicates a greater reliance on large companies by the more centralized and critical sectors, while local governments maintain some openness to smaller consultants.

In ****, the relevance of NRP-related projects in the public sector shows a clear difference between large and medium-small consulting firms in Italy. Among large companies, **.* percent have more than ** percent of projects related to PNRR, while this percentage drops to *.* percent for medium-small companies. Even in the ...

2.4 Consulting to support digital transformation and sustainability

In ****, consulting to support digital grew to account for about ** percent of the market, with an increase in the total value of projects of more than ** percent over ****. By ****, nearly half of large consulting firms and more than one-third of small- to medium-sized firms expect further growth in this consulting area. Nearly **% of the value of digital-related projects is carried out by large consulting firms. For **% of these companies, digital transformation-related projects account for more than **% of their value of production. About **% of the value of these projects is carried out by medium-sized consulting companies. For nearly **% of these companies, digital has a significant impact on their value of production. Slightly more than **% of the value of these projects is carried out by smaller consulting firms. About ** percent of small consulting firms specialize in this area. Almost all consulting firms for which digital transformation is a relevant line of business offer "Digital Strategy" and Artificial Intelligence support services. Projects related to "Cloud Strategy and Migration" and "Cloud Systems" are growing significantly. "Cybersecurity" and "Industry *.*/IOT" applications are growing but, due to the high level of technical skills they require, are offered by about ** percent and ** percent, respectively, of consulting firms specializing ...

2.5 Trends in demand for business consulting

The trend of online business consulting searches in Italy between July **** and July **** shows a significant fluctuation. In July ****, the index was **.*, while in July **** it dropped to **.*, indicating a decrease of **.* percent. The period of greatest interest occurred in September **** with a peak of **.*, followed by a steady decline with some variations. We note a temporary increase in February ****, with an index of **.*, before a new decline. Overall, the trend shows a general decline in interest over time, with periods of recovery not sufficient to reverse the negative trend.

The numbers represent search interest relative to the highest point on the graph in relation to the region and period indicated. A value of *** indicates the highest frequency of search for the term; ** indicates half as many searches. A score of *, on the other hand, indicates that not enough data were found for the term.

Trend of online searches for business consulting Italy, ****-****, index Google Trends, Businesscoot elaboration

The geographical distribution of online searches for business consulting in Italy shows a clear prevalence of Lombardy, with a maximum value of ***. This is followed by Lazio (***). Basilicata closes the ranking with **, while Valle d'Aosta records no research activity. This distribution highlights ...

2.6 New demand trends

In the context of a rapidly changing global marketplace, companies are facing increasingly complex and diverse challenges. To effectively navigate this landscape, the demand for business consulting services is constantly growing and evolving. Consulting firms are challenged to offer innovative and tailored solutions that meet the emerging needs of businesses. The following trends represent the key areas where demand for consulting is increasing, highlighting the main directions in which companies are moving to remain competitive and resilient, which are:

Digital Transformation and Technology: Companies are investing heavily in digital transformation to remain competitive. Consulting in this area includes:

Process Automation: Robotic Process Automation (***) implementation to improve operational efficiency. Artificial Intelligence and Machine Learning: Using AI for predictive analytics, service personalization and operations optimization. Cloud Computing: Migration to cloud solutions to improve flexibility and reduce IT costs. Cybersecurity: Strengthening defenses against cyber threats, an increasingly critical issue.

Sustainability and ESG (***): Growing environmental and social awareness has prompted companies to focus on sustainable practices:

Sustainability Strategies: Consulting to reduce environmental impact, improve energy efficiency, and develop eco-friendly products. ESG Reporting: Support in creating transparent reports on environmental and social performance, aligned with international standards. Corporate Governance: Improving governance practices to ensure transparency and ...

3.1 Italian market structure of consulting firms

The number of active business consulting firms in Italy has steadily increased from **** to ****. In **** there were **,***, while in **** it rose to **,***, a total growth of **.* percent in seven years. After a period of stability between **** and ****, the number has resumed growing every year, with a more pronounced increase from **** to ****. This positive trend indicates an expanding sector, with an average annual increase of about *.* percent. Number of firms active in business consulting Italy, ****-****, in numbers Assoconsult

In ****, the landscape of firms operating in business consulting in Italy is dominated by micro firms, accounting for **.* percent of the total. Small firms make up **.* percent, while medium-sized firms account for only *.* percent. Large firms are an absolute minority, with just *.* percent. These data show that the sector is predominantly characterized by small firms, with a preponderance of micro firms making up almost the entire market. Size of firms operating in business consulting Italy, ****, in % Assoconsult

The number of employees operating in business consulting in Italy grew significantly from **** to ****. In ****, there were **,*** employees, while in ****, the number rose to **,***, registering a ** percent increase in six years. After stabilizing in ****, the number began to grow rapidly again, with a particularly large increase ...

3.2 The main players in the market

The major business consulting players in Italy are:

Accenture: A multinational management consulting and technology services company, it is headquartered in Dublin and operates in more than *** countries. Founded in ****, the company supports the digital transformation of businesses using technologies such as artificial intelligence, cloud and blockchain. It partners with leading companies in industries such as finance, healthcare and telecommunications, providing tailored solutions to improve operational efficiency and sustainable growth. Its commitment to sustainability is reflected in initiatives for environmental responsibility, such as reducing carbon emissions, and gender equality, promoting an inclusive and diverse culture. With a global workforce of more than ***,*** employees, Accenture continues to be a pillar in business innovation.

Pwc (***): It is one of the world's largest professional services firms, part of the Big Four group. Founded in **** by the merger of Price Waterhouse and Coopers & Lybrand, it is headquartered in London and operates in *** countries. Specializing in audit, tax and legal advice as well as management consulting, PwC serves a wide range of industries including finance, healthcare, technology and manufacturing. The firm is recognized for excellence in providing innovative and customized solutions, supporting businesses in meeting the complex challenges of the global marketplace. PwC is also committed ...

4.1 Supply analysis

Business consulting firms offer a wide range of services covering various strategic and operational areas of businesses. These services help companies improve their operations, grow and remain competitive in an increasingly complex and dynamic market. The following table details the main types of offerings from business consulting firms, highlighting the specific areas of focus for each type.

4.2 Prices of consulting services in Italy

From **** to ****, the average pricing of a consulting day in Italy showed modest growth. Starting from €*** in ****, the value dropped slightly to €*** in ****, and then gradually rose again to reach €*** in ****. Overall, an increase of *.* percent is observed over the period. Despite some fluctuations, the general trend indicates an increase in costs, with a more noticeable growth in the last two years, signaling a higher valuation of consulting services.

Average pricing of a consulting day Italy, ****-****, in current &euro Assoconsult

In **** the average price of a consulting day is estimated at €***, up *.* percent in nominal terms (***). The increase seems to be concentrated mainly among smaller firms, which had been most affected by declining pricing in previous years. The gap in the average rates of the different size classes remains very high: large consulting firms sell their services at an average price more than ** percent higher than that of micros: €*** versus €***. Average pricing trend of a consulting day by type of firm Italy, ****-****, in % Assoconsult The trend in the average pricing of a consulting day in Italy between **** and **** shows an upward trend for all types of firms. For large enterprises, there is an increase from -*.* percent in **** to ...

4.3 Leading consulting firms

The consulting world is dominated by * companies in particular, distinguished by loco field of specialization.

The Big Three or MBB is the colloquial name given to the big three strategy consulting firms, which are considered the most prestigious firms in the management consulting industry. In terms of employees, McKinsey & Company is the largest and the first by revenue, followed by Boston Consulting Group and Bain & Company. We find them at the apex of the ranking described in the chart below, with McKinsey in first place, by degree of prestige.

Whereas, the "Big Four" represent the four largest accounting firms in the United States, based on revenue. They are Deloitte, Ernst & Young (***).Along with audit services, the Big Four also provide tax, strategic and management consulting, valuation, market research, assurance and legal services. They are the leading source for tax law interpretation and the experts on changes in accounting and auditing standards.The Big Four also work in the field of digital transformation consulting to meet the needs of companies in the digital age.

The top consulting firms in the world, by rank of prestige World, ****, in score Source: ****

Firm Employees (***) Revenue (***) Revenue per employee ratio Locations (***) Headquarters McKinsey & Company **.*** (***) $ ** B $ *** K *** New ...

4.4 New supply trends

The field of business consulting firms is constantly evolving, responding to changes in the global market, technological innovations and new business needs. Here are some of the key new trends in the service offerings of business consulting firms:

*. Digital Transformation and Advanced Technology

Automation and Artificial Intelligence (***), AI and machine learning to optimize business operations, improve efficiency and reduce costs. Blockchain: The adoption of blockchain technology to improve transparency, traceability and security in business processes, especially in sectors such as logistics, finance and healthcare. Cybersecurity: As cyber threats increase, consulting firms are expanding their cybersecurity services to protect businesses from attacks, fraud and data loss.

*. Strategic and Agile Consulting

Agile Business Models: Consulting firms are introducing agile methods to help companies respond quickly to market changes, reduce product launch times, and improve collaboration among teams. Sustainability and Social Responsibility: A growing focus on consulting for environmental sustainability, business ethics and social responsibility, with strategies to reduce companies' carbon footprint and improve corporate governance.

*. Consulting in Experience Design

Customer Experience (***) to create more immersive experiences. Human-Centered Design: The adoption of human-centered design approaches to develop products and services that better meet customer needs and behaviors.

*. Data Management Consulting

Data ...

5.1 Regulation

In Italy, business consulting firms must comply with a complex set of laws and decrees that regulate various aspects of their activities. First, they must follow the general regulations set forth in the Civil Code, which includes articles relevant to the definition of business and entrepreneur, as well as regulating companies. In particular, articles **** onwards define who is considered an entrepreneur and what their responsibilities are, while articles **** onwards deal with companies and their activities.

Another crucial piece of legislation is the Consumer Code (***) is also relevant, as many consulting firms take out insurance policies to protect themselves against professional risks.

Consulting firms must also comply with Legislative Decree *** of ****, which introduces the administrative liability of legal persons and requires the adoption of organizational and management models aimed at preventing the commission of crimes. This decree requires companies to implement internal control and compliance systems to avoid criminal penalties.

Occupational safety is regulated by Legislative Decree ** of ****, also known as the Consolidated Occupational Health and Safety Act. This decree establishes obligations to ensure a safe and healthy work environment, requiring consulting firms to take preventive and protective measures for their employees.

Consulting firms offering financial services must comply with the regulations ...

6.1 Market segmentation

• Accenture
• PwC
• Deloitte
• EY
• KPMG
• Bain & Company
• McKinsey & Company
• BCG
• Bip
• Protiviti