Are we finally turning a corner? Sure seems like we are. And it's about time; we've been writing about this downturn and the Great Recession far too long. For sure, we'll write more about in the future, but let's hope it's strictly in a "remember when" fashion.
It feels different because it's full of good news—revenue growth, new practices and office locations, recruiting, hiring, and firms so busy they can barely keep up with demand. Who would've thought just a year ago that the profession would be struggling—once again—to attract and retain top talent? And lack of it has caused utilization rates to soar to unsustainable levels. But hey, those are problems we can deal with right now.
Much of this, of course, is due to the necessary belt tightening most firms went through in 2009. Some of it, however, is because a few markets have come back in a big way, and sooner than anyone expected.
One such market is financial services. Firms of all sizes entrenched in that market are as busy as they've ever been. The market has gone through a perfect storm of sorts—almost unimaginable upheaval, brief stability, rapid growth and now, uncertainty. A significantly enhanced
regulatory environment is on its way and will surely change what the market looks like a year from now. Usually, it takes several years for an industry to go through these types of changes. In financial services, it took all of 18 months.
Then there's the Seven Small Jewels. Those firms have not only survived the economic downturn, but they've thrived in it. One firm grew revenue 100 percent, while another is projecting 200 percent growth this year. And they are hiring. All seven added staff in 2009, and not many firms can say that.
So far, 2010 has been a different story—firms are hiring again.
Deloitte Consulting, The Boston Consulting Group, Accenture and IBM are ramping up to meet demand. And those firms, as well as Bain & Company, Booz & Company and A.T. Kearney, say their 2010 MBA classes will be among their biggest ever. And not a moment too soon: recruiters report that Wall Street is back in the game and, once again, stealing talent from consulting firms. Why does that sound so familiar?
To be clear: No one is suggesting we're completely out of the woods. Several industries are still hurting, and most firms won't be breaking any revenue records in 2010. And we're aware that the entire U.S. (and global) economy is still fragile, at best. And we know it wouldn't take much to derail all of this new-found momentum. Really, we get it. But that's a topic for another day; let's just enjoy this one while we've got it.
Joseph Kornik
Editor-in-Chief
jkornik@consultingmag.com
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