Data Watch: Consulting by Numbers

After two bad years in 2001 and 2002, the Asia-Pacific consulting market rebounded during 2003, especially in the latter half of the year. The worst is over, according to Kennedy Information Research Group, which estimates that A-P consulting market revenues were at $8.9 billion in 2003. In its latest report, The Asia-Pacific Consulting Marketplace, KIRG forecasts moderate growth through 2006.
Overall, slow growth in Japan, as well as in Taiwan, Singapore, New Zealand, Hong Kong, and South Korea, will pull down overall growth for the Asia-Pacific region to a moderate CAGR of 5.3 percent between 2003 and 2006, despite very high growth in India and China.

Market Close-up

Hong Kong: Short-term projects and midsize clients hold promise for strategists

Most management consulting firms have seen negative revenue growth in Hong Kong during the past year, but many of them are expected to have moderate revenue growth starting from 2004 as the country's economy recovers. In general, the Hong Kong management consulting market is expected to grow at 2.3 percent CAGR from 2004 to 2006. IT consulting forms the bulk of the consulting market in Hong Kong, with a 41 percent share.
IT consulting companies should see stable demand for services, but the market remains very competitive because many large corporations have cut their IT budgets.
The structure of Hong Kong's economy makes it a tough market for most strategy consulting companies. It is highly concentrated around the property market; some large, family-owned conglomerates; and a vast number of small and medium-size companies. In view of this, more strategy firms will be seen pursuing short-term projects and exploring opportunities from middle-size companies.