Consulting Industry

With worldwide revenues of $300 Billion, it can be assumed that the average revenue per consultant is $300,000 - this means that there are over 1 million management consultants in the world.

Industry Overview

The US consulting services industry includes just over 250,000 companies with combined annual revenue of nearly $400 billion. Major companies include Accenture, Deloitte, EDS, IBM, and McKinsey. The industry is highly fragmented: the top 50 companies account for around 25 percent of total industry revenue. The average consulting firm has fewer than 10 employees and annual revenue under $1 million; 75 percent of consulting firms are one- or two-person operations.

Consulting services includes IT consulting, management consulting, and outsourced payroll services. The industry doesn't include companies that primarily provide labor or staffing solutions to other companies.

Competitive Landscape

Demand is driven by corporate profitability and the overall health of the US economy. The profitability of individual companies depends largely on the special expertise the firm provides to clients. Large firms have advantages in the range of services offered, which often span across all three major consulting disciplines. Small firms can compete effectively by specializing in new technologies or niche industries. The industry is labor-intensive, particularly for payroll services. Average annual revenue per employee is around $100,000.

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