Credit to Val Matthews for sparking the conversation with their recent post on the challenges facing the consulting industry. It’s a discussion worth expanding, because what we’re witnessing isn’t just a rough patch—it’s a fundamental shift in what businesses expect from their advisors.
For decades, management consulting has been a powerhouse industry—prestigious, highly profitable, and (for some) untouchable. But cracks are forming. And not the kind that can be smoothed over with another PowerPoint deck.
Big Names, Big Problems
The giants of consulting are facing headwinds:
✔️ McKinsey & Co. – Slowing demand, hiring freezes, and delayed start dates for new hires.
✔️ Bain & Co. – Clients pulling back on strategy engagements in favour of a more cautious approach.
✔️ EY (Ernst & Young) – 150 senior UK consultants laid off as demand for advice weakens.
✔️ Accenture – 19,000 job cuts, equivalent to 2.5% of its workforce, citing slowing growth.
✔️ Deloitte – Reportedly scaled back hiring projections amid a more challenging market.
And the numbers don’t lie:
📉 Deloitte: Revenue down 2.4% (2023-24)
📉 EY: Revenue down 6.1% (2023-24)
📉 KPMG: Revenue down 3.6% (2023-24)
📉 PwC: Revenue down 25.9% (2023-24)
(Sources: Business Insider, The Times, Financial Times)
What This Really Means
This isn’t just about short-term turbulence—it’s about a fundamental shift in what clients want.
✅ Niche expertise over generalists – The era of expensive, one-size-fits-all advisory services is fading. Businesses want specialists who can deliver high-impact solutions, not just a polished deck of recommendations.
✅ Execution over strategy alone – The appetite for theoretical roadmaps is diminishing. Clients need advisors who stay the course and deliver, not just consultants who disappear after the strategy phase.
✅ Flexibility over rigidity – Traditional consulting models rely on structured, long-term engagements. The businesses that thrive now are those that can pivot, adapt, and embed themselves in the client’s world.
The Future of Consulting Belongs to Those Who Can Deliver
The demand for consulting isn’t disappearing—it’s just shifting toward firms that drive results. Businesses still need expert guidance, but they won’t pay a premium for status symbols.
The winners in this new era will be those who roll up their sleeves and make things happen.
At COGENT, we’ve always believed that execution is what really counts. The industry is finally catching up.
Would love to hear your thoughts—where do you see the future of consulting heading?