Consulting News

Latest news about management consulting industry, leading firms and their roles in global economy and business.

PwC to Acquire PRTM

June 24, 2011, NEW YORK – PwC and PRTM, a global management consulting firm, today announced that they have entered into a definitive merger agreement whereby PwC will acquire PRTM. Upon completion of the acquisition, PRTM will join the PwC global Advisory practice, which ranks among the world’s largest providers of consulting services.

“The PRTM team will provide our firm with significant capabilities in the pwc to acquire prtmareas of operational strategy, execution and business model innovation,” said Dana Mcilwain, PwC Vice Chairman and U.S. Advisory Leader. “We are especially pleased that the PRTM team of highly talented, globally-oriented professionals have chosen to continue their careers at PwC.”

Scott Hefter, Global Managing Director of PRTM, said, “PRTM’s strengths in operations management combined with PwC’s extensive capabilities provide tremendous opportunities for both clients and staff alike. The cultures of PRTM and PwC are closely aligned, while the capabilities we bring to market are complementary. We look forward to working together to serve our clients (more…)

CNN Rates Management Consulting 3rd Best Jobs

December 2, 2010. The November 2010 issue of CNN Money Magazine released a study of the 50 Best Jobs in the United States. The study used a number of criteria to rank positions, including:

  • Satisfying nature of the position
  • Potential position growth
  • Flexibility
  • Median salary
  • Stress

Among jobs like ER Physician, Physical Therapist, Risk Management Manager, Test Software Engineer, Sales Director etc, Management Consulting landed third place on the list! (more…)

Deloitte Consulting, Roland Berger Discuss Possible Merger

November 17, 2010. Deloitte Touche Tohmatsu Ltd., one of the world’s largest networks for accounting and professional services, is talking with Roland Berger Strategy Consultants on a potential business combination. Deloitte’s takeover is aimed at creating a global strategy market leader with an annual revenue of about $2.8 billion.

The parties will make a decision by mid-December, Deloitte Germany Chief Executive Martin Plendl told reporters on a conference call today. Roland Berger is closely held and based in Munich, Germany.
deloitte roland berger merger
Roland Berger started as a one-man company in 1967 with a focus on marketing consulting, and grew into a broad array of services and clients. It has about 180 partners and is known for the research studies on business and management issues. In 2009, the company had 616 million euros ($833 million) in sales and about 2,000 employees in 27 countries, according to the Roland Berger website. Deloitte’s consulting business had $7.5 billion in revenue in the year ended May 31, Plendl said. “A merger opens up a unique opportunity for growth for both firms.” Roland Berger confirmed the talks. (more…)

Consulting Firms Turning to China and India for Growth

OCTOBER 11, 2010. With their fees under pressure and merger and acquisition activity still sluggish, management consulting firms are turning to emerging markets like China and India for growth.

The consultants’ emphasis on developing markets is yet another shift for an industry that has had to refocus its work force multiple times over the past decade. During the dot-com boom, clients sought e-commerce advice. After Sept. 11, they looked for help with cost-cutting, and then, a few years later, with M&A. During the recession, clients turned again to cost cuts.
china india management consulting growth
This time, consultancy firms are advising Western companies on how to expand in the emerging markets and also helping overseas concerns boost their infrastructure, management and accounting.

Last week, Deloitte Touche Tohmatsu Ltd. announced it plans to spend $1 billion on new hires, development and other strategic investments over the next five years.

For hiring, “China and India will be at the top of the list,” Chief Executive Jim Quigley (more…)

Big-4 Plan to Hire Thousands New Graduates

OCTOBER 4, 2010. PwC says it plans to recruit about 5,500 undergraduates and graduate students from U.S. campuses for the year ending June 30, 2011, for internships and full-time jobs. That’s up from 4,600 the prior year, and 4,800 the year before that.

Global revenue for PwC was $26.57 billion in the year ending June 30, up 1.5% from the year earlier, but down 5.7% from the year ending June 30, 2008. The North America and Caribbean region, the second-biggest source of revenue for PwC after Western Europe, was roughly flat at $8.9 billion.
PwC hiring thousands new graduates
Competitor Ernst & Young says it plans to hire 6,450 U.S. college students for full-time jobs and internships in the year ending June 30, 2011, while Deloitte LLP says it will hire 5,000 in the year ending May 31, 2011. KPMG plans to hire 3,400 in 2010, and 3,900 next year.

PwC has lagged its competitors in using social media to recruit. It launched its first Facebook and Twitter career pages in January 2010. Meanwhile, Ernst & Young has had a Facebook career page since 2006, where recruiters interact with students and answer questions about jobs. KPMG launched a Twitter account in 2009 managed by its recruiting team. (more…)

At Some Companies, MBA Students Are Consulting

SEPTEMBER 2, 2010. Some of the top U.S. business schools have been teaming up with companies, including Urban Outfitters Inc. and Green Mountain Coffee Roasters Inc., on programs in which students play the role of consultant—at little or no cost to the company.

Students may work on identifying acquisition targets, assessing a market segment’s viability or creating a business plan, among other topics, program directors said. At Dartmouth College’s Tuck School of Business and Indiana University’s Kelley School of Business, the programs are free; others charge the company anywhere from $50,000 to $80,000.

“We’re bringing together several faculty, and a larger number of M.B.A.s are put on a project than many private consulting firms,” said Jonathan Frenzen, who leads such a program at University of Chicago’s Booth School of Business. “The expense for doing that at the school is pretty significant.” (more…)

PricewaterhouseCoopers to Buy Diamond Management

AUGUST 24, 2010. Accounting giant PricewaterhouseCoopers LLP has agreed to pay $378 million for Diamond Management & Technology Consultants Inc., highlighting further consolidation in the sector.

Big consulting firms, still suffering from recessionary aftershocks, have been seeking to grow through acquisitions. Aon Corp. agreed earlier this month to buy human-resources firm Hewitt Associates Inc. for nearly $5 billion, tripling the size of its own consulting operations and presenting a challenge to rival Marsh & McLennan Cos..

In its deal, Diamond holders will get $12.50 a share, a 31% premium to Monday’s closing price. The stock, up 29% in 2010 through Monday, was last at the bid level three years ago.

“This is an attractive all cash opportunity for our stockholders, creates exciting prospects for our people, and will provide us new and enhanced capabilities to bring to our clients,” said Diamond President and Chief Executive Adam Gutstein. “There’s a clear strategic fit between PwC’s assets and aspirations and Diamond’s positioning.”

The deal is set to close by the year-end.

Diamond employs more than 500 consultants, with offices in the U.S., London and Mumbai. It consults with clients on how to grow businesses and boost margins. The company has been recording steady growth, reporting a tripling of earnings for its latest quarter.

Source: Wall Street Journal

Aon Agrees to Buy Hewitt

JULY 13, 2010. In another sign of consolidation in the management-consulting industry, Aon Corp. agreed to buy Hewitt Associates Inc. in a cash-and-stock deal valued at about $4.9 billion.

The two are the latest consulting-industry players to flirt or agree to a deal in recent weeks as firms seek to get bigger to woo more global business. The industry is still suffering from recessionary aftershocks. While work volume has rebounded, average billing rates remain depressed. As a result, bigger firms are looking for ways to grow through acquisitions. And some are finding opportunities to snap up bargains as smaller firms seek the heft to compete.

The global management-consulting business is a far cry from its heyday a decade ago, when it experienced double-digit revenue growth, added Tom Rodenhauser, an industry analyst and the editor of the newsletter Consultants News.

The industry’s world-wide revenue sank about 10% last year to $170 billion, and “we are looking at 2% growth per year over the next four to five years,” he said. Corporate clients are also evaluating consultants’ services more skeptically.

At the same time, the biggest firms, such as McKinsey & Co., are gaining more clout, leaving midsized players vulnerable. The biggest 10 consulting firms controlled about 38% of global revenue in 2009. Within five years, the industry’s giants will “control half the market,” Mr. Rodenhauser predicted.

Source: Wall Street Journal.

A.T. Kearney, Booz Call Off Merger Talks

JULY 7, 2010. Management consultancies A.T. Kearney Inc. and Booz & Company called off discussions about a possible merger that would have given the two midsize firms greater scale in a highly competitive industry.

The two have flirted with each other multiple times over the years without completing a deal. The most recent talks occurred on and off over the past six months, says a person familiar with the matter.

The combined firm would still have been smaller than market leaders such as Deloitte LLP, McKinsey & Company and Accenture Ltd in an industry where scale is increasingly important in wooing global business. Because both firms overlap in certain areas, such as operations consulting, Booz partners saw little advantage to sharing their turf with Kearney counterparts, this person said. A skeptical partner typically said, “Wait a minute. That’s what I do,” this person recalled.

The merged firm would have been the world’s 14th-biggest management consultancy and seventh-biggest management-strategy consultancy, according to Tom Rodenhauser, an industry analyst and the editor of the newsletter Consultants News.

Both firms used to be part of larger entities. Booz & Company was born after Booz Allen Hamilton Inc. separated its corporate consulting arm from its bigger government business in 2008. The government advisory unit retained the original name after the parent company sold a majority stake in the unit to Carlyle Group for $2.54 billion.

Kearney has been a private partnership since 2006, when its partners bought it back from Electronic Data Systems, which had purchased it in 1995. Its revenue fell to $786 million last year from about $900 million the year before.

It has traditionally been strong in the retail and automotive industries, and is best known for its advice on operations and strategy. In the past few years it has sought more government business and expanded internationally in such regions as the Middle East and Eastern Europe.

Source: Wall Street Journal.

3 Responses to Consulting News

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