EY
Norman Lonergan
Global Vice Chair, Advisory
Consulting: As we finish 2015, where is your firm today?
Lonergan: In fiscal year 2015, EY grew across all four service lines: Advisory, Assurance, Tax and Transactions. We also grew across all geographic regions. That translated into combined global revenue for the fiscal year of $28.7 billion—an 11.6 percent increase over FY14 revenues in local currency. This was the fastest growth we've seen since 2008. Geographically, the growth was led by the U.S., the U.K., Germany, Australia and Italy. In Advisory, we delivered another year of double-digit growth in our work with clients to address their big, complex business issues. This came from organic expansion, targeted acquisitions and new alliances.
Consulting: How would you describe your firm's outlook for 2016?
Lonergan: EY is on an ambitious growth trajectory to reach $50 billion of revenue by 2020. In 2016, we expect to deliver the next phase in our strategic plan to achieve that goal. Advisory, our consulting business, will be one of the firm's main engines of growth. Looking ahead, we expect to see dramatic changes in the consulting market focused around three key trends: digital transformation, cyber security, and the transition to cloud based technologies. These issues will be most prevalent for our clients and at EY we are already adapting to meet them. The bigger question is what will happen in 2017, 2018 and beyond? We expect seismic change to sweep across the consulting market, in terms of what clients want and how consulting firms need to deliver it. In large part this is driven by digital disruption.
Consulting: What specific signs are you seeing that suggest an increase or decrease in demand?
Lonergan: Our 2015 Global Information Security Survey, which explores the most pertinent cybersecurity issues facing businesses, revealed some surprising client insight. The report showed 88 percent of companies don't believe their information security fully meets needs and a third lack confidence in their ability to detect sophisticated cyber-attacks.
Consulting: How do you see the profession evolving in 2016?
Lonergan: The consulting industry, like many others, will experience dramatic change in 2016 and beyond. Evolving industry and business trends, such as the increased number of acquisitions and alliances and increased regulations, mean consulting firms need to be more nimble than ever. Those that adapt and evolve will continue to flourish, expand, and attract the best people.
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