Consulting Firms Poach Rainmakers, Group Leaders

By Perri Capell

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.)

• Openings exist for senior business-development, sales-and-marketing and practice leaders. These include partners who can land and lead assignments and national accounts managers, who will serve as the primary point person for a consulting firm's entire business with a major customer. Also being recruited are experts who can build new practice groups and chief marketing officers who can lead marketing departments and build a firm's "brand." Some consulting firms also are hiring managers to run their outsourcing divisions.

-- Ms. Capell is a senior correspondent for CareerJournal.com. She can be reached at frances.capell@dowjones.com