Effect of pandemic on Consulting

The effect of the global coronavirus pandemic has affected the world severely. Consulting firms also have not been spared due to their impact. The industry had grown strong since the past 12 years, but due to COVID-19, consulting firms are also facing the heat. Clients are delaying and canceling projects due to the lack of finances. Its believed that the value of this industry would demote from a growing $160 billion to $130 billion. The consulting agencies depend directly and indirectly on the economy. If the economy rises, companies expand, and to facilitate this expansion; consultants are employed. On the other hand, if the economy goes down, companies need to curb all their expenses by a degree. To achieve the goal, companies hire consultants.

Overall, the pandemic has caused a net loss in the consulting agency. This is because companies are very unsettled regarding everything. The epidemic has profoundly affected startups. Startups are the type of businesses that need constant consulting. Other big companies are also affected. Thus, many average level consultants are facing a lack of work because startups and small scale businesses mostly hire them.

But some companies are figuring out how to deal with the situation and are hiring consulting firms. So we can say that there are some opportunities for the consulting industry. The growing effect of COVID-19 means that at one point, each company will look out for consultants who can guide them in cutting their expenses. Some industries, like the food industry that have started to rise, are hiring consultants to provide them additional help to maximize profits.

As Stefan Schaible, Global Managing Director of Roland Berger, said to Handelsblatt, “Right now, many companies are wondering how to deal with the situation and the economic consequences. And that’s why consultants are still in demand.”

To sum up, yes, consulting firms are facing downfall, but they will rise with the increasing impact of COVID-19.