As we wrap up the first quarter of 2011, it certainly appears the largest firms remain well positioned to take advantage of the improving economy.
For example, IBM's business analytics practice grew its revenue by more than 40 percent in the second half of the year—thanks, in part, to a slight increase in billing rates. The firm expects continued growth and now has over 7,800 consultants dedicated to the group. Big Blue isn't resting on its laurels: across the company, the firm spent $6 billion total on 17 acquisitions last year.
Meanwhile, Capgemini reported a strong second half of 2010 and is forecasting as much as 10 percent revenue growth in 2011. (For more details, see Page 6 for Consulting's interview with Capgemini's North America CEO Lanny Cohen.)
And CIBER ended 2010 with a modest uptick in consulting revenue (up 3.2 percent to just over $1 billion). However, it still remains about 10 percent below the $1.1 billion it generated from consulting in 2008. The consulting group's operating margins continued to slide—falling for the second-consecutive year to 23.9 percent (down from 24.5 percent in 2009 and 26.8 percent in 2008).
The firm's leadership changes continue: CFO Peter Cheesborough recently announced his plans to leave the firm in April; he will be replaced by Claude Pumilia—the current CFO of the city of Denver. Pumilia is a former executive with HP, CA and Compaq. Cheesborough's departure comes about a year after President and CEO Mac Slingerlend retired.
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