Covid-19 Impact on the Global Consulting Industry
With the detrimental effects of the current Coronavirus pandemic hitting every single industry on a global scale, the consulting industry around the world has as well encountered profound challenges as well as progress hindering yet inevitable circumstances. Given the relative and associative nature that consulting firm’s base their operations on, the far-reaching impact of the Covid-19 pandemic has inevitably reflected on just how much the consulting industry has taken shape through the recent turbulent times.
Through the last 12 years, the consulting industry has enjoyed a remarkable and constant successful rise as is evident by the world’s combined estimated worth of $160 billion. This success has however come under imminent threat over the last couple of months as the coronavirus ravages through the planet. Experts have estimated an unassailable $30 billion drop in revenues earned by consulting firms across the world. This is a considerable drop from the industry’s $160 billion global valuation leading up to 20190, to a $130 billion global valuation in 2020. This essentially means that the consulting industry around the world is expected to lose up to 19% of its total annual revenues.
The drop in revenues is brought about by a lot of businesses going through tough times. A sluggish global economy has had crippling effects on a lot of businesses to the extent of threatening to push quite a number of small businesses to the brink of recession. Quite a number of clients are either scaling down on their projects or are entirely pulling the plug on ongoing projects as a result of the effects of the Covid-19 pandemic.
The consulting industry has steadily grown through the years and has undoubtedly enjoyed some considerable amount of success. The coronavirus pandemic has however halted this successful run by threatening to throw a lot of businesses into projected obscurity. Within the short time the pandemic has swept through the world, ravaging through some already frail economic structures, it has taken less than a year to threaten the world’s greatest economies.
Experts expect the global consulting industry revenue projections to be at an unfortunately bleak position in the foreseeable future. It is expected that the consulting industry might further experience a decline in revenues through the second and third quarters of 2020. From this, it can be determined that the consulting industry is braced for some significantly tough economic times ahead.