deloitte_vol2_article3

Market Share Analysis: Top 10 Consulting Providers’ Revenue, Growth and Market Share, Worldwide and Regional, 2009

Gartner Dataquest Research Note G00200370, Michael von Uechtritz, 30 April 2010, V2 RA3 05072011

This report is intended as a tool for service providers conducting a market scan of the top worldwide and regional consulting service providers and their performance. In 2009, all providers were challenged by shrinking consulting service markets. We examine and analyze the top 10 consulting service providers’ performance in revenue, growth and market share, both worldwide and regionally: North America, Europe, Asia/Pacific and Japan.

Key Findings

• Theconsultingmarketdeclined9%.Sixofthetop10worldwideserviceprovidersperformedbetterthannegative9%in2009.Ofall280consultingserviceproviderscoveredin“ITServicesMarketMetricsWorldwideMarketShare:Database,”138outperformed(betterthannegative9%)theglobalmarket,ofwhich60providershadpositiverevenuegrowth.

• Someproviderswereabletocapitalizefromeconomiesalreadyrecoveringinlate2009andincreasetheirconsultingservicemarketsharebyselectivelyco-investingwithbuyersforinnovativeandgrowth-focusedprojects,orbytakingadvantageofinvestmentsbypublic-sectorclients,representing21%,or$15billion,oftheworldwideconsultingmarket.

• In2009,business-outcome-focusedprovidersofconsultingserviceswithestablishedbusinessrelationshipswereoftensuccessfulingrowingtheirmarketsharebetterthanthemarketaverage.Supplierswithabroadrangeofadvisoryserviceswereattractivetobuyers,forexample,iftheycouldprovideassistanceinmitigatingfinancialrisksofanunderperformingcomplexbusinessoperation.

• Manyconsultingserviceprovidersfacedchallenging2009marketconditions.ThosewithattributessuchasapureITfocus,internalinfluencesfromotheroutsourcing,softwareortechnologybusinesses,anunbalancedgeographicalrevenuesplit,orhugedependenciesonclientsinasingleverticalmarketoftenunderperformedthemarketaveragerevenuegrowthrate.Fourofthe10largestproviders(IBM,Accenture,HPandCapgemini)and141ofall280providerscoveredinthemarketsharedatabaseunderperformedtheworldwideconsultingmarketgrowthrateaverageofnegative9%.

2• Providerswerehardesthitin2009byadeclineof14.9%in

Europe.Consultingservicemarketshareconcentrationofthe10largestprovidersinEuropeincreasedfrom35.9%in2008to36.8%for2009,or0.9%.For2010,intheEuropeanregion,furtherbrandandclientacquisitionsareexpectedtoresultingrowingmarketshareconcentrationamongthetop10providers.

Recommendations

• AsabusinessandITconsultingservicebusinessleader,increaseyour2010marketsharebydemonstratingtopotentialbuyershowtheadviceyousellwillassistthemnotonlyinmitigatingtheirfinancialandbusinessrisks,butalsoincopingwitheconomicuncertainties.Forexample,committoeconomicbenefitsforbuyersfrombusinessprocessimprovementprojectsinthesupplychain.

• ITconsultingserviceprovidersshouldreducetimespentnegotiatingwithbuyersforanother(small)fixed-priceproject.Instead,considergrowingyourmarketsharebyinvestinginthedevelopmentofdifferentiatingconsultingserviceofferingstowinclients,oraddnewtalentstoyourconsultantbaseinaglobalmarketof$73billionthatisforecasttogrow6.2%in2010comparedwith2009.

• Constantlyassessyourorganization’sbusinessperformance,inparticular,asalocalproviderofconsultingservices.Learnfrom2009successesandfailures.Blocksufficienttimein2010withyourkeyexecutivesandadvisorstoidentifywhatneedstochangeinyourconsultingbusinessstrategy.Forexample,foryourpotentialandtargetedclientsegments,assesswhethertheserviceoffering(portfolio)addressespeople,process,technologyandbusinessriskrequirements,andforeachelement,includeaclearvaluepromiserelatedtothefinancialbusinessoutcome.

ANALYSISConsultingservicebusinessleadersdidnothaveasinglemonthof“businessasusual”in2009.Andmanyconsultingpracticeleaders,partnersorsalesandmarketingexecutiveswelcomedthebeginningoftheglobaleconomicrecoveryduringthelaterpartof2009withasighofrelief.

Manyglobalandregionalconsultingservicebuyersdelayedorfrozetheirinvestmentsinprojects,reducedtheirnumberofpreferredsuppliersandincreasedthepressureonconsultingratecards.Therefore,in2009,allsuppliersfacedunfavorablebusinessconditions.Providers’keybusinessperformanceindicators—suchasbacklogforordersandrevenue,timefrombidtoprojectdelivery,clientattrition,consultantutilization,forecastaccuracy,projectprofitandmargin,projectfunnelandprojectsize,sales

forceefficiency—wereimpacted.Businesseroded,andmanyconsultancyfirmswereforcedtotakedrasticmeasuresinresponsetochallenging2009marketconditions.Actionsweobservedincluded:

• Biddingforsmallerprojects

• Cuttingoverheadcost

• Rebalancingprojecttasksacrossaglobalworkforce

• Reducingtheconsultantbasewithvoluntaryorforcedleaves

Theseactionsandotherstepstakenbyprovidersresultedintheiroverall2009marketshareperformance.The2009marketsawahighermarketshareaccumulationofthe10largestproviders,withsomeproviderslosingtheir2008positioninthetop10listordisappearingfromaregionalmarket.Evensomeestablishedprovidersunderperformedintheirrevenuegrowthanddeliveredresultsbelowtheglobalmarketaverageofnegative9%in2009.

Examiningandanalyzinganyprovider’sperformance(e.g.,consultingservicerevenue,growthormarketshare)thatishighlightedinthisdocumentshouldalsobereadintheeconomicalcontextof2009.Theglobaleconomydeclined2.2%in2009,measuredinrealgrossdomesticproduct(GDP)growthcomparedwith2008,asestimatedbytheWorldBankinJanuary2010.

1.0 Consulting Market ContextSomecontextisimportanttounderstandthedynamicsofconsultingservices.InGartner’sforecastandmarketdefinition,consultingservicesisanofferingofprofessionalservicesandincludestwosubsegment(businessandITconsulting)forecasts.Wedonotfurthersegmentthemarketshare.

Theconsultingservicemarketfacedadramaticglobaleconomicslowingin2009.Despiteafinanciallychallengingyear,sixoftheworld’slargestconsultingserviceprovidersthatGartnercoversinitsmarketshareanalysismanagedtoperformbetterthanthemarketaverageofnegative9%in2009.Whyhavesomeconsultingserviceprovidersbeenmoreresilientinthisdramaticglobaleconomiccycle?Gartnernotesthefollowingobservations:

• Indifficultanduncertaintimessuchasin2009,buyersprefertoworkwithestablishedproviderstoattainadvicetheyneed.Consultingisrelativelyimmunefromtheeconomiceffects,eveninagloballycontractingmarket.Businessadvisoryserviceprovidersweresomewhatmoreresilientiftheyhadanestablishedrelationshipandcoulddemonstratetheirbusinessvalue-addtoclients.

©2010Gartner,Inc.and/oritsaffiliates.Allrightsreserved.GartnerisaregisteredtrademarkofGartner,Inc.oritsaffiliates.Reproductionanddistributionofthispublicationinanyformwithoutpriorwrittenpermissionisforbidden.Theinformationcontainedhereinhasbeenobtainedfromsourcesbelievedtobereliable.Gartnerdisclaimsallwarrantiesastotheaccuracy,completenessoradequacyofsuchinformation.AlthoughGartner’sresearchmaydiscusslegalissuesrelatedtotheinformationtechnologybusiness,Gartnerdoesnotprovidelegaladviceorservicesanditsresearchshouldnotbeconstruedorusedassuch.Gartnershallhavenoliabilityforerrors,omissionsorinadequaciesintheinformationcontainedhereinorforinterpretationsthereof.Theopinionsexpressedhereinaresubjecttochangewithoutnotice.

3• Operatingcomplexityfororganizationshasincreasedthe

demandforadvice.Enterprisesareconfrontedwithmyriad—andoftentimes—uncertainlegal,regulatory,financial,riskmanagementandoperatingconditionsasaconsequenceofthefinancialcrisisin2008andcontinuedeconomicuncertainties.Potentialbuyersofconsultingservicesoftendonothavesufficientin-houseexpertisetoaddresstheseissuescompletely.Itisthereforenosurprisethatsomeoftheconsultingservicefirmsthatspecializeinaddressingcomplexbusinessconditionswereaskedtoassisttheirclientsintheplanningof,forexample,therestructuringofabusinessoperation,andtheysawanincreaseindemandfortheadvicetheycanprovide.

• IncreaseofopportunitiesinarapidlyrecoveringemergingconsultingmarkethelpedtooffsetuncertainorunfavorableeconomicconditionsforsomeprovidersintheUnitedStatesandpartsofWesternEuropeasearlyasthesecondhalfof2009.Wenotethatproviderswithaglobal,virtualworkforcecanbetterbalancedemandsintermsoftheircapacitiesandstaff.Theseproviderscandeliverprojectswithouterodingprofits,whilereactingtopressuresonconsultingratecardsbybuyers.

2.0 Market Share PerformanceManyproviderstookmeasurestosurviveandbe“sheltered”fromfinancialdistress,andoverall,theconsultingindustryresistedgreaterdamagesthatwereexpectedfromasevereeconomicdownturn.BearingPoint,forexample,filedforChapter11bankruptcyinFebruary2009foritsU.S.operations.However,ofallthe280providerscoveredin“ITServicesMarketMetricsWorldwideMarketShare:Database,”60providersexperiencedpositiverevenuegrowth.Thisevidenceofresiliencefortheadvisoryindustryisinteresting,becauseadvisoryservicesaretypicallyconsideredbymanyasthefirstand/orworst-affectedbusinessserviceswhenspendingorcapitalcontracts.

Thus,theleadersinthissegmenthaveevolvedovertimethroughsignificantinvestmentsinmethods,physicalinfrastructure,laborpools,andexpansionoftheirclientbaseandpipelines.Organicgrowthalsohasbeensupplementedwithacquisitions;andwhenanacquisitionofscaleoccurs,theimpactcanbenoteworthy.Morevariabilityingrowthandrevenueperformancehascausedmorefluctuationinmarketsharegains/losses.Inaconstantlychangingcompetitivelandscape,wefoundattributesofsuccessfulprovidersintheconsultingmarkettoinclude:

• Scale—GlobalbusinessandITconsultingserviceprovidershavescaleintheiroperationstodelivertheiradviceacrossseveralgeographicalregionsanddomains.

• Scope—Advisorsoperatinginitiativesforbuyersonaglobalscalehavetheabilitytoofferabroadarrayofconsultingservicesaddressingtheseinitiatives;broadscopeintheadviceofferediscriticallyimportant.

• Skills—Consultanciesneedtherightmixofskills,suchasformulticulturalandmultidomainchangemanagement,whileatthesametimeofferingadeepbusinessprocessunderstandingforalargenumberofindustries.

• Stability—AsolidbalancesheetandfinancialstabilityofthebusinessandITconsultingserviceproviderarecriticalbecausebuyingorganizationsmustmitigatetheriskoffailingtocompleteaprojectorinitiative(forexample,amajortransformational18-month-longglobalfinancefunctionproject).

• Strategy—Consultingserviceproviderscontinuallyevolvetheirbusinessstrategythroughreorganizing,“reskilling”oftheirresourcesandredefiningserviceoutcome.

Thetop10listsforeachregionandtheoverallworldwidemarketsharedidvary—butnottoasignificantextent.Manyproviderswereabletoholdontotheirpositions.However,somecompetitorsstartedtoclosethemarketshareandrevenuegaps—throughacquisitionsandorganicgrowth,aswellasbyobservingwhathasenabledthetopproviderstobothexpandtheirportfolioofconsultingservicesandholdontotheirstrongplacesinthemarket,despitethechallengesallprovidersfacedin2009.

2010willbecritical;thereturntorevenuegrowthwillbeimperativeforconsultanciesofallsizes;thosethatdonotkeeppacewiththegrowthoftheconsultingservicemarket,whichispredictedtoreboundin2010,willbepossibletargetsforacquisitionbythestrongerproviders.Acquisitionscanpotentiallyhaveamaterialimpactonthemarketsharerankings.

3.0 Methodology and Market Share DatabaseGartner’s“ITServicesMarketMetricsWorldwideMarketShare:Database”providesvendorrevenue,marketshareandend-usermarketsizeforITservicesbyregionandcountry.Consultingservicesaresegmentedbycomputingandcommunicationsplatformsandbyverticalmarket.Thesestatisticshavebeendevelopedusingsecondaryresearchandmodelingtoprovidetimelyestimatesofprior-yearresults.Marketsharestatisticsreflectsecondaryandprimaryresearch,includinginputfromparticipatingvendors.See“DataquestGuide:ITServicesMarketResearchMethodologyandDefinitions”forfurtherdetailonourmethodologiesanddefinitionsforITservicesandwhichcountries/regionsandverticalsarecoveredbythedatabase.

4.0 Worldwide: Top 10 Consulting Service Providers’ Revenue, Growth and Market Share, 2009Worldwidebusinessconditionsof2009havechangedtheconsultingmarketlandscapebecausemoremarketsharewasabsorbedbythe10largestproviders,reducingthecombinedshareofallotherprovidersby0.7%,or$491million.Theincreaseof0.7%,from33.4%in2008to34.1%in2009,isexplainedbythefactthatsomesmallerproviderslosttheirrevenuetosomeoftheirlargercompetitors.

Sixoutperformersexceededtheworldwidemarketaverageofnegative9%in2009andareinthetop10list(seeTable1):Deloitte,PricewaterhouseCoopers(PwC),Ernst&Young,KPMGInternational,CSCandFujitsu.Further,ofthe280globalprovidersthatGartnertrackedconsultingservicerevenuefor,138exceededthenegative9%growthratein2009,and60globalprovidershadapositivegrowthrate(morethan0%)intheirconsultingservicerevenue,despitethechallengingyear.

4Acquisitionsconstantlychangetheconsultingserviceprovider’slandscapeandimpactthegrowthratesinorganically.Attributesofprovidersinregardtotheirglobalscale,potentialfornewprojectscope,overallrevenuesize,consultantskillandtalentbaseareanexpressionoftheirconsultingbusinessstrategy.Amongthemanyacquisitionsin2009,thesaleofBearingPointtoCSC,Deloitte,Keane,PwCandotherproviderswasamajoreventandisreflectedinthisworldwidelistandtheregionaloneswhereapplicable.

Smallersuppliersofadvisoryserviceswerechallengedintheiraimtoachieveabalanceintheir2009revenueacrossseveralgeographicalmarketsandtherebyreducetherevenueimpactofasinglegeographicalmarketontheirglobalbusinessperformance.Longexistingbusinessrelationshipsbetweenbuyersandtheirpreferredconsultingserviceproviderrepresentahurdleforthesesmallercompetitorstryingtoexpandintonewaccountsortakingmarketshareinapreviouslyunaddressedverticalsector.

Membersoftheglobaltop10listtradedplaces,butthepositionsofthesevenlargestplayersdidnotchangefrom2008.In2009,Fujitsuclimbedtotheeighthposition,andHPclimbedtotheninthposition,whileCapgeminidroppedtwoplaces—tothe10thposition—intermsofglobalconsultingservicemarketshare.Overall,therewaslittlechangeinthegroupofthetop10providernameslistedinTable1,whichremainedthesameforallproviders,comparedwith2008.Webelievethattheconsistentpresenceoftheproviders,suchasKPMG,signalsthestrongeraffinityofIT-consulting-ledprojectstowardfinancialadvicerequired.Some

buyershavebusinessrequirementstomitigatepeople,process,technologyand,increasingly,financialrisksandmust(often)continuetoimprovecertainbusinessprocessestocutenterprisecosts.

The2009top10marketsharedatashowsthe10largestglobalsuppliersofconsultingservices(seeTable1).

Sixofthe10providersoutperformedthemarketaverageofnegative9%in2009.Attributesofthesixoutperformersinclude:

• Deloitte,Ernst&Young,KPMGandPricewaterhouseCooperscombinedrepresentthegroupofthe“BigFour.”Their2009marketshareresultsconfirmour2008marketshareassessmentthattheBigFourwillincreasetheirrelevancetobuyers.Commonattributesofthesebusinessconsultingserviceprovidersareasfollows:

• Globalscale

• Presenceinmorethan100countries

• Broadscopeoftheadvisoryservicestheycanprovide—fromaccounting,auditing,assurance,businessandtaxtotransactionadvisoryservices

Source:Gartner(April2010)

Table 1. Worldwide: Top 10 Consulting Service Providers’ Revenue, Growth and Market Share, 2008-2009 (Millions of Dollars)

Vendor

Deloitte

IBM

PricewaterhouseCoopers

Accenture

Ernst&Young

CSC

KPMGInternational

Fujitsu

HP

Capgemini

OtherServiceVendors

Total Market

Rank

1

2

3

4

5

6

7

8

9

10

2008

4,385

4,353

3,316

3,074

2,348

1,926

1,735

1,561

1,536

1,566

51,303

77,103

2009

4,354

3,958

3,225

2,590

2,327

1,769

1,689

1,473

1,313

1,291

46,147

70,136

Growth (%) 2008-2009

0.7

9.1

2.8

15.7

0.9

8.2

2.7

5.7

14.5

17.6

10.0

9.0

Market Share (%) 2009

6.2

5.6

4.6

3.7

3.3

2.5

2.4

2.1

1.9

1.8

65.9

100.0

5• Exceeding100,000employeesinconsultingoverall

• Broadskillbase

• SizeintermsoftheirrevenueinthebusinessandITconsultingmarketandothermarkets.

• Overall,theBigFourgroupcopedrelativelywellwiththedynamicsoftheglobalconsultingmarket.Thehistoricalclosealignmentoftheirconsultingbusinesswiththebuyingorganizations’CFOcommunitywasattributedtotheseproviders’auditingandaccountingbusinesses.Sincethefinancialcrisisin2008,CFOsareconsiderablymoreinfluentialtotheCIOandoverallforthebusinessandITconsultinginvestmentsofanorganization,comparedwithprecrisisyears.Further,weobservedinourdialoguewithGartnerclientsthroughinquiriesthatadviceoftheBigFourisfrequentlyconsideredobjectivebytheirpotentialservicebuyers.Thisisbecausetheseprovidersare,toacertaindegree,notinfluencedbytheirotherbusinesses,suchastheneedtopushforrevenueforIToutsourcingwithamajorsoftwareorlargehardwareinternalbusinessunit/division,throughadvicetheysellanddeliver.

• Fujitsu,withnegative5.7%,andCSC,withnegative8.2%,outperformedthemarketaverageofnegative9%.

• Fujitsudeclinedlessthan9%initslocalandregionalgovernment,transportationandhealthcarebusiness.FujitsushowedpositiverevenuegrowthforitsbusinessandITconsultingrevenueinitsservices,wholesaleandtrade,andagriculture,miningandconstructionverticals.

• CSC’sresultswerepositivelyimpactedbyitsconsultingbusinessinthegovernmentvertical,fromwhichCSCderived$866million(of$1,769million)in2009and$884millionin2008,a2%declinecomparedwith2008.CSCexploiteditsconsultativecapabilities,creatingandidentifyingIToutsourcing(ITO)opportunities,aswellasleveragingintoandthroughthetransition(earlylifesupportteam).

Attributesofthefourunderperformers,whichalldeclinedinrevenuebymorethan9%in2009,include:

• Thesefourlargeconsultingserviceproviders—IBM,Accenture,HPandCapgemini—havealargeportionoftheirtotalITservicesrevenuecomingfromacompanystrategyofpositioning,oftensellingtheiroutsourcingoperations,inadditiontotheirconsultingservices,tobuyers,aswellasbundlingconsultingintoanapplicationdevelopmentcontract.Further,providerssuchasIBMandHPhaveothersoftwareandhardwarebusinessestosupport/prioritizewiththeirconsultingbusiness.

• Someproviders’revenueand,therefore,marketshareresultsaregeographicallylessbalancedbecausetheprovidersarehighlydependentonasinglecountry,andwebelievethissituationcontributedtoCapgemini’sunderperformanceofnegative17.6%in2009.Capgeminicollected$1,005million,or77.9%ofitsglobal$1,291millioninconsultingrevenue,fromWesternEurope.TheAsia/Pacificregion,a$7,187millionmarketin2009,contributed4.5%ofCapgemini’sgrowth,or$32million,butata(low)weightof2.5%initsglobalconsultingservicerevenue.

5.0 Regional Analysis: Top 10 Consulting Service Providers’ Revenue, Growth and Market Share, 2009Whenreviewingproviderperformanceineachregion(worldwide,NorthAmerica,Europe,Asia/PacificandJapan),wefoundnoticeabledifferences,andtheyareasfollows:

• Japanshowedthehighestconcentrationofmarketshare(68.1%)forthetop10providersamongallfiveregions.Theworldwideconcentrationoftop10marketsharewas34.1%in2009(asshowninTable1).

• NoproviderintheworldwideandEuropeantop10listsachievedflat(0.0%)orpositiverevenuegrowthin2009.Incontrast,fiveprovidersoperatingintheJapanesemarketgrewtheirconsultingservicerevenue,therebyoutperformingtheirglobalmarketpeers.Themarketshareholdbylocalcompetitorsineachregiondemonstratesthattheabilitytodeliveradvisoryserviceslocallyorregionallyremainsakeyrequirementforsomeendusers.

• IBMhasauniquepresence:Itislistedamongthe10largestconsultingserviceprovidersinallfivegeographicalregionscoveredinthisreport.

• Otherproviderspopulatethetop10listsinmultipleregions,anddomesticprovidersappearonregionallists:Forexample,SAICappearsinNorthAmerica’slist,LogicaappearsinEurope’slist,SamsungSDSappearsinAsia/Pacific’slist,andNECappearsinJapan’slist.Clearly,competitivedifferentiationversusagroupofpeersrequiresallproviderstotakeintoaccountthespecificregionalorcountrymixofcompetitioninthesemarkets.

• Theunweightedaveragerevenuedecline(inU.S.dollars)forthetop10providersperregionvariessignificantly,anditisaslowasnegative2.3%forAsia/Pacificandisashighasnegative12.4%inEurope.Asia/Pacific’slowerdeclineinrevenueforthetop10indicatesthatsmallermarketsrecoverfasterfromaneconomiccrisis,andtherefore,somerapidlyrecoveringeconomiesoffera2010revenueopportunityforproviderstoeventuallyrebalancetheirtotalconsultingservicerevenuesplitquickly.Forexample,theAsia/Pacificregionisforecasttogrow17.1%in2010initsconsultingservicemarketcomparedwith2009,representingan$8.5billionmarket.

65.1 North America: Top 10 Consulting Service Providers’ Revenue, Growth and Market Share, 2009InGartner’sanalysis,wedefineNorthAmericaasbeingcomposedofCanadaandtheUnitedStates.NorthAmerica’sbusinessconditionsof2009changedthemarketlandscape,evidencedby0.7%moremarketshareaccumulatedbythetop10,increasingfrom39.7%in2008to40.4%.Theincreaseof0.7%,or$195million,representstheabsorptionofafictiveproviderholdinga27thmarketsharepositioninthisgeographicalmarket.

SixprovidersexceededtheNorthAmericanmarketaverageofnegative6.1%in2009:Deloitte,PricewaterhouseCoopers,SAIC,NorthropGrumman,Ernst&Young,andKPMGInternational(seeTable2).Further,ofthe135providersthatGartnertrackedconsultingservicerevenueforinNorthAmerica,69exceededthenegative6.1%growthin2009,and28providersoperatinginthisgeographicalmarkethadapositivegrowthrateintheirconsultingservicerevenue.

ThebreakupandsaleofBearingPointisreflectedinthistop10listforNorthAmericaandfurtherunderlineschangesatthesupplysideofthelargestregionalconsultingmarketintheworldworth$27.9billionin2009.

Positionsinthetop10listchanged,butitsmembersfortheNorthAmericanregionremainedalmostthesame,comparedwith2008.Inthe2009listofthe10largestconsultingserviceprovidersinNorthAmerica,SAICandNorthropGrummanrepresenttwolargeU.S.-focusedproviders.Forexample,in2009,$1,245millionof

SAIC’s$1,250millionconsultingservicerevenueinNorthAmericawasgeneratedintheU.S.and$972millionofNorthropGumman’s$976millionconsultingrevenueintheregionwasgeneratedintheU.S.McKinsey&Co.exitedthelist,andKPMGInternationalenteredthelistandisnowinthe10thpositionforits2009marketshare.

Table2liststhe10largestprovidersofconsultingservicesinNorthAmericain2009.

Sixofthe10providersoutperformedtheNorthAmericanmarketaverageofnegative6.1%in2009.Attributesofthesixoutperformersinclude:

• Consultingserviceproviders—suchasNorthropGrumman,SAICandDeloitte—thatwerepositionedstrongly(ifcomparedbyrevenuegrowthrates)inthe2009NorthAmericanconsultingmarkethavehistoricallyoperatedinthescopeoftheU.S.federalgovernmentsector.Deloitte’s2009marketshareincludestheacquisitionofBearingPoint’spublic-sectorpracticesintheU.S.Thesethreeproviders’performancedemonstratedacompetitiveadvantageintheirverticalbusinessfocusandassistedtheseprovidersinachievingpositiverevenuegrowth.

• WeattributeSAIC’s2009successtotheprovider’sscope,skillsandcompetenciesitcanprovidetonationalsecurity,energyandenvironment,criticalinfrastructure,andhealthbuyersofadvisoryservices.SAIC’sstrategytofocusonthepublicsector

Source:Gartner(April2010)

Table 2. North America: Top 10 Consulting Service Providers’ Revenue, Growth and Market Share, 2008-2009 (Millions of Dollars)

Vendor

Deloitte

PricewaterhouseCoopers

IBM

SAIC

CSC

NorthropGrumman

Ernst&Young

Accenture

Oracle

KPMGInternational

OtherServiceVendors

Total Market

Rank

1

2

3

4

5

6

7

8

9

10

2008

2,406

1,445

1,465

1,193

1,271

926

870

970

656

554

17,944

29,700

2009

2,419

1,432

1,311

1,250

1,179

976

843

797

534

528

16,616

27,886

Growth (%) 2008-2009

0.6

0.9

10.5

4.8

7.2

5.4

3.0

17.9

18.6

4.8

7.4

6.1

Market Share (%) 2009

8.7

5.1

4.7

4.5

4.2

3.5

3.0

2.9

1.9

1.9

59.6

100.0

7forthisalmost-U.S.-onlyprovider(intermsofbusinessandITconsultingservicerevenue)haspaidoff,asevidencedbyitsbetter-than-market-averageresults.2009wasarecordyearfortheprovider,anditsoverallbusinessexceeded$10billion,anditreported27dealsvaluedat$100millionorgreater,comparedwith17in2008.In2009,SAICacquiredSMConsulting(SMC)andIconSystems(Icon).SMCprovidesservicesinlanguage,intelligence,IT,managementconsulting,businessprocessoutsourcing,training,andlogisticstofederal,stateandlocalgovernments,andprivateindustry.

• Competitivemoves(thatis,acquisitions)helpedPwCtoexpanditsconsultingbusinessandstrengthenitsconsultingskillsintechnologyandtransformation,includingstrategy,operationsandsustainability.ItsacquisitionsofAlarisConsulting,NewDimensionSolutions,Entology,BusinessMinds,ECSLtd.andSustainableFinance,aswellasportionsofBearingPointNorthAmerica’scommercialbusiness,impacteditsresult.

• PwCwasoneoftwoBigFourfirms(Ernst&Youngwastheother)tosupporttheU.S.governmentinitsbailoutofbankinginstitutionsundertheTroubledAssetReliefProgram(TARP).Overall,PwC’sbusinessandITconsultingrevenuedeclined0.9%in2009comparedwith2008.

• Ernst&Youngappearstobegrowingitstechnologyadvisorycompetenciesorganically,althoughthefirmacquiredtheSAP-focusedpracticeofEnteGreatinApril2009,andCapitalCityTechnologies,asmallmanagementandtechnologyconsultingfirmservingthegovernmentsector,in2009.Ernst&YoungadvisedtheFederalReserveBankofNewYorkonthedismantlingofAmericanInternationalGroup(AIG).Overall,Ernst&YoungbenefitedfromitsincreasedfocusonthealignmentofbusinessandIT.IntermsofErnst&Young’sconsultingservicerevenue(inparticular,businessconsulting),Ernst&Youngbenefitedfromsomebuyers—beyondtheCFOcommunity—showinganinterestinmaturingsolutions,suchasanalyticsandbusinessintelligence,toenhancethefinancialtransparencyoftheirorganizations.

Oraclehadthehighestdecline(atnegative18.6),followedbyAccenture(negative17.9%),IBM(negative10.5%)andCSC(negative7.2%)intheNorthAmericanmarket.Thesefourprovidersinthistop10listunderperformedthemarketaverageofnegative6.1%,andtheirattributesinclude:

• Oraclehasnotfullymaterializedonallconsultingserviceopportunitiesinsomeoftheverticalsectors,suchasinthegovernmentalsector,whichisarevenuestreamthatsomeoftheotherprovidersoperatinginthisregionhavetakenbenefitof.Oracleexperiencedastrongdeclineof20.9%initsconsultingrevenuefor2009inthemanufacturing(discreteandprocessmanufacturing)verticalsectors,whichcontributedtoitsbelow-market-averageperformance.

• Withrevenueof$797millionin2009,Accenturedeclined17.9%fromitsprevious-yearestimatedrevenuebaseof$970million.Accenture’sproject-basedservicesincludebusinessconsultingandITconsulting,andthestaffingisusually

organizedtoconductaconceptualanddetaileddesign,whichisusuallyexecutedbyabusinessconsultingteam(forprocessdesign,workflowsandbusinesscase)andITconsultingresources(forthetechnicalarchitecture,detaileddesignandconfiguration).OtheradvisorsthatAccenturecompeteswithinNorthAmericaselltheirownservices,similartothoseofferedbyAccenture,andin2009,competitivepricepressuresandthelackofconstantlyreaching(new)buyingcenters,suchastheCEOorCFOofanorganization,mayhaveimpacteditsperformance.

• IBM(withnegative10.5%)andCSC(withnegative7.2%)werealsochallengedtocopewithadifficultyearandunderperformedthe2009marketaveragerevenuedeclineof6.1%intheregion.Webelievethatinternalinfluencesandobligationstootherbusinesses,suchasoutsourcing,softwareandtechnology,influencedtheirmarketperformanceinbusinessandITconsulting.

5.2 Europe: Top 10 Consulting Service Providers’ Revenue, Growth and Market Share, 2009InGartner’sanalysis,wedefineEuropeasbeingcomposedofEasternandWesternEurope.AmajorcomponentoftheEuropeanmarketisWesternEurope,oneofthemost-matureconsultingmarkets.Thus,inmarketshare,weseeacombinationoflocal,globalandEurope-basedprovidersdominatingtheleadershippositionsduetotheirpositioninWesternEurope.

DuetoachallengingEuropeanconsultingservicemarket,asorganizationsslowedspendingonprojects,changestothecompetitivelandscapewerealmostnatural.Thetop10playersaccruedanadditional0.9%ofmarketshare,growingto36.9%,representinga$228millionincreasecumulativelyortheabsorptionofafictiveproviderholdinga21stmarketshareposition.

Fiveproviderswithinthetop10exceededand,thereby,outperformedtheEuropeanmarketaverageofnegative14.9%in2009:Deloitte,PricewaterhouseCoopers,Ernst&Young,KPMGInternationalandFujitsu(seeTable3).Further,ofthe186providersthatGartnertrackedconsultingservicerevenueforinEurope,atotalof102exceededthenegative14.9%averagein2009,and18providersoperatinginthisgeographicalmarkethadapositivegrowthrateintheirconsultingservicerevenue.

Driversforlocalmarketdynamicsintheregionarefoundinthedifferenteconomicconditionsunderwhichproviderswerecompeting,includingthemanyvaryinglocallegalandregulatoryrequirementsanddifferencesinbusinessculturethatimpactedhowconsultingproviderscansellanddelivertheiradvicetoEuropeanclients.

In2009,GDPdecreased4.1%intheeuro(currency)areaanddecreased4.2%acrosstheEuropeanUnion’s27memberstates,comparedwiththe0.6%increaseand0.7%increase,respectively,in2008,accordingtoEurostat,thestatisticalofficeoftheEuropeanUnion.TheofficefurtherreportedthatamongEUmemberstatesforwhichseasonallyadjustedGDPdataisavailable,Estonia(with2.5%growth)recordedthehighestgrowthrateinthefourthquarterof2009,comparedwiththepreviousquarter,followedbySlovakia(with2%)andPoland(with1.2%).

8Currencieshadanimpactduetovolatileexchangerates,suchasfortheeuroagainsttheU.S.dollar.Currencyimpactsconstrainedsomeprovidersoperatingatacountryorregionallevel,forexample,iftheyhadnotproperlyhedgedagainstcurrencyfluctuations.Also,someprovidersfacedchallengesfromyearlyunfavorablepredefinedinternalexchangeratesintermsofintracompanycosttransferswhenlendingconsultantsforthedeliveryofglobalprojectsoutsidetheirterritories.WereportedfortheU.K.consultingmarketanegative17.2%performanceinU.S.dollars,negative2.7%performanceinBritishpoundsandnegative12.8%performanceineuros.

PositionsintheEuropeantop10listchangedin2009,buttheprovidersfortheregionremainedthesame,comparedwith2008.Inthis2009listofthe10largestconsultingserviceprovidersinEurope,LogicarepresentsalargeEuropean-focusedproviderforbusinessandITconsultingservices.ThatisbecauseLogica’s$1,083millionofits$1,086millionbusinessisderivedfromitsclientsinWesternEurope,anditsrevenuefromtheU.K.andFrancecombinedis$452million.

The2009top10marketsharedatashowsthe10largestEuropeansuppliersofconsultingservices(seeTable3).

Attributesofthefiveoutperformers(Deloitte,PricewaterhouseCoopers,Ernst&Young,KPMGInternationalandFujitsu),whichallexceededtheEuropeanmarketaverageofnegative14.9%in2009,include:

• TherevenuethattheBigFourderivedfromtheirbusinessconsultingservicescontributedtotheirbetter-than-market-average(negative14.9%)revenuegrowthperformancein2009.Theresultsofthesefourproviderscanbeattributedtothebroadscopeofprojectstheycanaddressandtheavailabilityofconsultantswithskillsandcompetenciesthatwereneededtocopewitheconomicchallengesin2009byclientsinanumberofverticals,suchasfinancialservices,communications,utilitiesorhealthcare.Forexample,forallfourproviders,revenuegrowthinthefinancialservicesverticalexceededthemarketaverageofnegative15.6%in2009inthebusinessandITconsultingservicemarketinEurope,whichshrankfrom$6,542millionin2008to$5,521millionin2009.

• Fujitsuadvisoryserviceattributorsincludedsomecompetenciestoimproveabuyer’sbusinessoperation(operationalexcellence),whichwasacritical2009priorityforCIOs.TheproviderintegrateditstechnologyadvisorycompetenciesorganicallyandrefocusedonsellingitsITconsultingcompetencies.InApril2009,FujitsuacquiredSiemens’50%stakeofFujitsuSiemensComputers(FSC).Asaresultofthereorganizationandacquisition,Fujitsucannowreapthebenefits,anditcannowbroadlypositionitsconsultingservicestoclientsintheregion.

Source:Gartner(April2010)

Table 3. Europe: Top 10 Consulting Service Providers’ Revenue, Growth and Market Share, 2008-2009 (Millions of Dollars)

Vendor

Deloitte

Accenture

Logica

Capgemini

IBM

PricewaterhouseCoopers

Ernst&Young

KPMGInternational

Fujitsu

HP

OtherServiceVendors

Total Market

Rank

1

2

3

4

5

6

7

8

9

10

2008

1,253

1,437

1,282

1,231

1,195

1,040

978

840

741

677

19,081

29,755

2009

1,182

1,145

1,086

1,012

1,005

936

924

816

656

548

16,007

25,317

Growth (%) 2008-2009

5.7

20.3

15.3

17.8

15.9

10.0

5.5

2.9

11.5

19.1

16.2

14.9

Market Share (%) 2009

4.7

4.5

4.3

4.0

4.0

3.7

3.7

3.2

2.6

2.2

63.1

100.0

9Accenturehadthegreatestdecline(negative20.3%),followedbyHP(negative19.1),Capgemini(negative17.8),Logica(negative17.3%)andIBM(negative15.9%)amongthe10largestprovidersintheEuropeanmarket.ThesefiveprovidersinthisEuropeantop10listunderperformedthemarketaverageofnegative14.9%,andtheirattributesinclude:

• IntermsoftheirmarketshareinEurope,Accenturederived23.6%ofitsconsultingbusinessin2009fromtheUnitedKingdom,Capgeminiderived27.8%,andHPderived28.8%oftheregionalconsultingbusinessfromtheUnitedKingdomin2009.Further,theU.K.isAccenture’sandHP’sprimarysourcecountryforconsultingrevenueinEurope.Therefore,theU.K.hadaheavyinfluenceontheseproviders’overallresultsfortheregionin2009.

• Capgemini’sconsultingservicerevenuesplitacrosstheregionsissomewhatunbalanced,asitcollected$1,005million,or77.9%,ofitsglobal$1,291millionconsultingservicerevenuefromWesternEurope.

• Logica’s2009underperformance(negative15.3%)inconsultingrevenuegrowthversusthemarketaverageinEuropeofnegative14.9canbeattributedtoitsstrongdeclineof25.6%inconsultingservicerevenueintheNetherlandsandadeclineof25.5%inBelgium;generally,bothcountrymarketsarehistoricstrongholdsforLogica.

• IBM’sdeclineof15.9%inconsultingservicerevenuein2009wasrelativelyequallysplitacrossEurope.

5.3 Asia/Pacific: Top 10 Consulting Service Providers’ Revenue, Growth and Market Share, 2009The2009marketsharedatashowsthatthetop10providersinAsia/Pacificintheconsultingservicemarketaccountedfor48%ofthetotalAsia/Pacificconsultingmarket(seeTable4),anincreaseof1.1%from46.9%in2008,representingabusinessof$79millionofthetotalmarket.

SevenoutperformersexceededtheAsia/Pacificmarketaverageofnegative5.1%in2009:IBM,Accenture,PricewaterhouseCoopers,KPMGInternational,Ernst&Young,DeloitteandCSC.Further,ofthe176providersthatGartnertrackedconsultingservicerevenueforinAsia/Pacific,86exceededthemarketaverageofnegative5.1%in2009,and53providersoperatinginthisdiversegeographicalmarkethadapositivegrowthrateintheirconsultingservicerevenue.

In2009,theglobalconsultingmarketfacedaremarkablysynchronizedglobaldownturn,butin2010,providersstartedtoexperienceamultispeedGDPrecovery.TheAsia/Pacificregionclearlyhighlightsthattherecoveryisproceedingatdifferentspeeds,anditremainsfragile.Theseconditionsposetheirownchallengestoconsultingserviceprovidersoperatinginadvancedeconomies,suchasAustralia,oremerginganddevelopingeconomies,suchasChinaandIndia.Further,acrosstheregion,thebusinessconfidenceindexforSouthKorea,Malaysiaand

Taiwanisupfromthehighlevelsof2008,accordingtotheInternationalMonetaryFund(IMF),signalingprojectopportunitiesforproviders.

Positionsinthelistdidnotchange,andits10membersfortheAsia/Pacificregionremainedthesame,comparedwith2008.SamsungSDS,UXCandLGCNSrepresentlargeAsia/Pacific-focusedprovidersforbusinessandITconsultingservices.Forexample,localITservicesfirmUXC,whichhassignificantbusinessinthegovernment,communicationsandretailsectors,isalsoincludedinthelist,anditderives$155millionofits$170millionbusinessintheregionfromclientsinAustralia.LGCNSandSamsungSDSareITservicesarmsoftheirchaebolconglomerateparentcompanies.SamsungSDShas$429millionofits$462millionAsia/PacificconsultingservicerevenuefromclientsinSouthKorea,andLGCNS,SouthKorea-based,derives$141millionofits$152millionintheregionalsofromSouthKorea.

Ourdatafor2009liststhe10largestprovidersofconsultingservicesinAsia/Pacific(seeTable4).

Attributesofthesevenoutperformers(IBM,Accenture,PricewaterhouseCoopers,KPMGInternational,Ernst&Young,DeloitteandCSC),whichexceededtheAsia/Pacificmarketaverageofnegative5.1%in2009,include:

• TheBigFour’sperformanceinbusinessconsultingservicescontributedtotheirbetter-than-market-average(negative5.1%)revenuegrowthin2009inAsia/Pacific.Resultsofthesefourproviderscanfurtherbeattributedtoclientsinanumberofverticals,suchasfinancialservices,communications,government,utilitiesorhealthcareintheregion.Consistently,allfourprovidershavetheirlargestshareoftheirAsia/PacificconsultingservicerevenueinAustraliaandinthefinancialservicesindustry(FSI).Allfourproviders’revenuegrowthintheFSIexceededthemarketaverageofnegative4.8%in2009forconsultingservicesintheAsia/Pacificregion.FSIrepresents$1,670million,or23.2%,oftheregion’stotalconsultingmarketof$7,187millionin2009.TheBigFourconsultingfirmswereamongthe41providersforwhomwereportedpositiverevenuegrowth(exceeding0%)inthisregionalmarketin2009.

• SuccessattributesforIBMandAccentureincludecountry-specificrevenuegrowth,suchasinChina.IBMrevenueforconsultinggrewfrom$254millionto$297million,or16.6%,inChina.AccenturegrewitsconsultingrevenueinChinafromarevenuebaseof$46millionto$60million,or28.7%.ForCSC,wereportedrevenuegrowthinSingapore(24.0%)andTaiwan(22.8%).

LGCNS(negative19.4%),SamsungSDS(negative18.6%)andUXC(negative14.6)alldeclinedinrevenueintheAsia/Pacific.ThesethreeprovidersintheAsia/Pacifictop10listunderperformedthemarketaverageofnegative5.1%,andtheirattributesinclude:

• SamsungSDS’sandLGCNS’sunderperformanceareduetotheircontinuedhighrevenuedependencyonSouthKorea;92.9%ofSamsungSDS’stotalAsia/Pacificconsultingservice

10

revenuewasderivedfromSouthKorea,and92.8%ofLGCNS’sAsia/Pacificconsultingrevenuewasderivedfromthesamecountry.IntermsoftheSouthKoreanwon,theseproviders’consultingrevenuedeclined7.3%forSamsungSDSanddeclined8.4%forLGCNSin2009comparedwith2008.However,theSouthKoreaneconomyrecoveredinthesecondhalfof2009,accordingtotheBankofKorea.

• UXCfacedchallengesinNewZealandandAustralia,withdecliningconsultingrevenueof18.8%and14.3%,respectively,in2009.

5.4 Japan: Top 10 Consulting Service Providers’ Revenue, Growth and Market Share, 2009The2009marketsharedatashowsthatthetop10providersinJapanintheconsultingservicemarketaccountedfor68.1%ofthemarket,downby0.7%fromitspreviouslevelof68.8%;revenueof$39millionwastransferredtoprovidersthatwerenotpartofthetop10list.

TheaveragemarketdeclineintheconsultingmarketinJapanforallproviderswas0.5%.Thisnegative0.5%growthratewasoutperformedbyfiveprovidersin2009(seeTable5):Fujitsu,NEC,NTTData,NomuraResearchandMitsubishiElectric.Further,ofthe89providersthatGartnertrackedconsultingservicerevenueforinJapan,51exceededthemarketaverageofnegative0.5%in2009,

and49providersoperatinginthisdiversegeographicalmarkethadpositivegrowthintheirconsultingservicerevenue.

InJapaneseyen,however,theconsultingmarketintheregiondeclined9.9%in2009comparedwith2008,and11providersreportedpositivegrowth.ThisresulthighlightsthattheimpactoftheappreciationoftheJapaneseyenagainsttheU.S.dollarwasstrongin2009;forcomparisonpurposes,weprovidethelistofthetop10alsoinlocalcurrency(seeTable6).

ThebusinessenvironmentinJapanwassevereforthewholeof2009,andmanyorganizationskepttightITservicesspending,especiallyspendingrelatedtoconsultingservices.ConsultingserviceprovidersoperatingintheJapanesemarketfoundasomewhatpositivebusinessenvironment,withtheGDPincreasingby0.9%inthefourthquarterof2009(negative0.1%inthepreviousquarter),accordingtoEurostat.Theofficealsoreportedforthewholeof2009thatGDPdecreasedby5.2%inJapan,comparedwithitdecreasing1.2%in2008.

Positionsinthetop10listchanged,andToshibaexitedthelist,whilePricewaterhouseCoopersenteredthetop10asaresultofitsacquisitionofBearingPointin2009;PwChasincreaseditspresenceinthelocalmarket.

Somelargedomesticprovidersinvestedinenhancingtheirconsultingcapabilitiestoeffectivelyapproachcorporateexecutiveofficersofuserorganizations—whosebudgetswerestrictlycontrolled—towinprojects.HitachiandNTTDatahavebeen

Source:Gartner(April2010)

Table 4. Asia/Pacific: Top 10 Consulting Service Providers’ Revenue, Growth and Market Share, 2008-2009 (Millions of Dollars)

Vendor

IBM

SamsungSDS

Accenture

PricewaterhouseCoopers

KPMGInternational

Ernst&Young

Deloitte

CSC

UXC

LGCNS

OtherServiceVendors

Total Market

Rank

1

2

3

4

5

6

7

8

9

10

2008

887

570

441

366

259

218

217

208

199

189

4,016

7,570

2009

875

462

438

409

262

253

232

200

170

152

3,725

7,187

Growth (%) 2008-2009

1.4

18.9

0.7

11.6

1.2

16.1

7.1

4.1

14.6

19.4

7.2

5.1

Market Share (%) 2009

12.2

6.4

6.1

5.7

3.6

3.5

3.2

2.8

2.4

2.1

52.0

100.0

11acquiringconsultingcompanies,andFujitsurestructureditsorganizationandaggregateditsconsultingresourcesamongthegroupintoasubsidiaryprovidingnewoptionsforJapaneseclients.SuchmovessignalthatprovidershavestartedseeingastrongeraffinityoftheirIT-consulting-ledprojectstowardthefinancialadvicerequiredbysomeoftheirbuyers.

The2009top10marketsharedatashowsthe10largestsuppliersofconsultingservicesoperatinginJapan’smarket(seeTable5).

Attributesofthefiveoutperformers(Fujitsu,NEC,NTTData,NomuraResearchandMitsubishiElectric),whichexceededtheJapanesemarketaverageofnegative0.5%in2009,include:

• Ongoingstrongrelationshipswithcompaniesinthemanufacturingindustry,whichretainedITinvestmentstoimprovethebusinessprocessorexpandglobaloperations,evenunderseverebusinesscircumstances.Fujitsu,NEC,NTTDataandNomuraResearchempoweredtheirdeliverycapabilitiesinregionssuchastheAmericas,EastAsia,EuropeandChina,tostrengthentheircompetitivenessinconsultingprojects.

• Aconsistentattributeofallthesefiveproviders(Fujitsu,NEC,NTTData,NomuraResearchandMitsubishiElectric)ofbusinessandITconsultingservicesinJapanisthattheyareallheadquarteredinJapan.

• FocusputontheITcostoptimizationrelatedtoconsulting,includingthereviewofcurrentsystemsandITcosts,spendingonsoftwaresupportmaintenance,andoutsourcing.

IBM,Hitachi,PricewaterhouseCoopers,ITHoldingsandNihonUnisysdeclinedinrevenueinJapan’sbusinessandITconsultingmarketin2009.Thesefiveprovidersinthistop10listunderperformedthemarketaverageofnegative0.5%,andtheirattributesinclude:

• WeobservedthatsomeproviderswerelateinestablishingglobalsupportcapabilitiestogainattractionfromthegloballyoperatingJapanesemanufacturers.

• Relativelyhighdependencyonthefinancialservicessector,whichdrasticallycutITbudgetsandfrozeongoingprojectsin2009.

• NomuraResearchandMitsubishiElectricderive100%oftheirglobalconsultingservicerevenuefromclientsinJapan,andNECderived91.1%ofitsglobalconsultingrevenuefromclientsinJapan.

• NTTDatageneratedrevenueof$190million,or34.7%,fromtheFSIin2009.

Source:Gartner(April2010)

Table 5. Japan: Top 10 Consulting Service Providers’ Revenue, Growth and Market Share, 2008-2009 (Millions of Dollars)

Vendor

Fujitsu

NEC

IBM

NTTData

Hitachi

NomuraResearch

PricewaterhouseCoopers

ITHoldings

MitsubishiElectric

NihonUnisys

OtherServiceVendors

Total Market

Rank

1

2

3

4

5

6

7

8

9

10

2008

676

540

564

526

582

195

183

170

148

125

1,683

5,392

2009

712

550

546

529

526

206

155

152

149

125

1,712

5,362

Growth (%) 2008-2009

5.3

1.9

3.2

0.5

9.6

5.9

15.2

10.7

0.9

0.6

1.8

0.5

Market Share (%) 2009

13.3

10.3

10.2

9.9

9.8

3.8

2.9

2.8

2.8

2.3

31.9

100.0

12

Forcomparisonpurposes,weprovidedthelistoftop10consultingserviceprovidersinJapaninlocalcurrency(seeTable6).Ofthe89providersthatGartnertrackedconsultingservicerevenueforinJapan,49exceededthemarketaverageofnegative9.9%in2009,and11providersreportedpositivegrowthinyen.

6.0 Key Business and IT Consulting ServicesThisdocumentusesGartner’sterminologyforconsultingservices,whichisanaggregateforbusinessandITconsultingadvisoryservices.

Businessconsultingservicesincludebusinessoperationsconsultingservicesthattypicallypreface,enableorinfluencetheadoptionofIT.Thesebusinessconsultingservicesincludebusinessprocesstransformation,businessprocessredesignorre-engineering,businessperformanceimprovement,corporatecompliance,financetransformation,humancapitalmanagement,riskmanagement,governanceandsourcingadvisory.BusinessconsultingisdifferentfromITconsulting,whichisadvisoryservicesthathelpclientsassessdifferenttechnologystrategiesand,insodoing,aligntheirtechnologystrategieswiththeirbusinessorprocessstrategies.

Examplesofthesetypesofservicesincludetransformationalchangemanagementafteramerger,acquisitionanddivestures,complianceissues,costreduction,innovationinitiativesinproductmarketing,ITimprovements,organizationaldesign,processimprovement,productivityimprovement,orfunctionaladviceforfinancemanagement,humanresources,supplychain,marketingorcustomercare.

7.0 Evolution of the Worldwide and Regional Consulting MarketsWorldwide,Gartnerpredictsthatinthenearterm,revenuepressuresonconsultingserviceproviderswillcontinuetobehigh.Consultantsmustalsoupdatetheirknowledgebasefrequentlytokeeppacewithevolvingbusinessandtechnologyneedstodefendtheirmarketshare.“HypeCycleforConsultingandSystemIntegration,2009”showshowdynamicthebusinessconditionsareforbusinessandITconsultingserviceprovidersandtheirpotentialclients.Rightnow,enterprisecosttakeoutandbusinessprocessimprovementareinthescopeformanyconsultingprojects.Apartfrompricepressureonconsultingdayratesandfrequentchangestobusinessconditionsandtechnology,theglobalconsultingmarketprovidersfacechallengesfromcompetitivetechnologies,suchasonlineadvisoryservices,software-enabledbusinessmodelsandbusinessprocesssimulations.

Source:Gartner(April2010)

Table 6. Japan: Top 10 Consulting Service Providers’ Revenue, Growth and Market Share, 2008-2009 (Millions of Yen)

Vendor

Fujitsu

NEC

IBM

NTTData

Hitachi

NomuraResearch

PricewaterhouseCoopers

ITHoldings

MitsubishiElectric

NihonUnisys

OtherServiceVendors

Total Market

Rank

1

2

3

4

5

6

7

8

9

10

2008

69,884

55,787

58,324

54,402

60,125

20,139

18,953

17,585

15,307

12,974

173,899

557,379

2009

66,631

51,478

51,143

49,517

49,234

19,305

14,545

14,215

13,982

11,680

160,208

501,938

Growth (%) 2008-2009

4.7

7.7

12.3

9.0

18.1

4.1

23.3

19.2

8.7

10.0

7.9

9.9

Market Share (%) 2009

13.3

10.3

10.2

9.9

9.8

3.8

2.9

2.8

2.8

2.3

31.9

100.0

13Forregionalconsultingservicemarkets,weexpectbuyerswillcontinuetocarefullymanagetheirbudgets,asevidencedbyintendedbehaviorsofbuyersintheU.K.,whichisthelargestmarket($6.4billion)intheEurope,theMiddleEastandAfrica(EMEA)market,andwhichisexpectedtogrow5.9%in2010.

In2010,thedemandforadviceinseveralregionsisgrowingagain,andasaresult,thedistributionofmarketsharewillevolve;weexpectthatlargerproviderswillconcentratemoremarketshareduringtheyear.

Further,someproviderslistedinthisdocumentwillstrategicallyacquirecompetitors,presentinganopportunitytogrowtheirglobalscaleandrevenuesizein2010,aswellastoacquirenewskillsneededtoaddressanincreaseddemandofbuyersseekingassistance—regionallyandglobally—tosuccessfullymanageincreasedcomplexityintheirbusinessoperations.