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Consulting Firms Poach Rainmakers, Group Leaders Suffering from business
doldrums, many U.S. consulting firms stemmed red ink by laying off or
furloughing professionals during the past year and a half. Lately, business has
begun to improve in certain consulting sectors, with current search assignments
showing that firms hope to rebound in 2003, according to recruiting executives
serving the industry. Overall, North American consulting-firm revenue is
expected to increase by 4.4% in 2003, compared to an estimated 2.6% rise in
2002, according to Kennedy Information Inc., a research firm in Peterborough,
N.H. By sector, the
healthiest firms are those providing human resources, operations and some
strategy consulting. Those with technology, customer-relationship management or
enterprise-resource planning practices are less busy, and layoffs may continue
at some of these firms. Small and midsize firms have fared better than large
organizations. By industry category, firms serving health-care, security and
government-related businesses are in the best financial shape, as are many
boutiques. Less active are firms serving high-technology, telecommunications,
manufacturing and retail customers. Although recruiting
assignments are still down significantly from the heyday of 1999 and 2000,
search specialists report signs that 2003 will bring more openings. Firms have
reduced the ranks of midlevel consultants, who primarily executed projects,
leaving senior partners and less-expensive associates to handle implementation.
Currently, recruiters are working on assignments that allow consulting firms to
take advantage of a talent oversupply and lower compensation levels and
cherry-pick top managers from other consultancies.)
-- Ms. Capell is a senior correspondent for CareerJournal.com. She can be reached at frances.capell@dowjones.com |
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