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From Russia (and Eastern Europe) with Love: Four things consultants in the region should keep in mind
Our latest research revealed that the Eastern Europe & Russia consulting market grew by a solid 6.8% in 2018, to reach total revenues of €1,917m. We’ve put together a few things to keep in mind if you are already active in, or thinking of entering, this potentially challenging market:
- Know your market (and your competition)
The market’s growth may be stabilising, but this is a notoriously difficult place to be a consultant, especially one working for a large firm with a global reach: Political scrutiny of foreign consulting is rife, and this distrust is unlikely to subside any time soon. With that in mind, your competition is likely to be smaller, local firms. Not only are they seen as more trustworthy, but they’re also hard to compete with on price. The best way to combat this is by having trusted and capable local partners on the ground.
- Digital isn’t everything, at least not yet
This is a market that has been pretty slow on the uptake when it comes to digital. In 2018, only 22% of all consulting work was attributable to digital, a paltry figure in comparison to other European consulting markets. However, the realisation that they must digitise in order to survive has hit the region’s clients hard, and they have started to seek consulting support in order to keep up with their competition. This is especially true in the retail sector, where the rise of e-commerce has had a significant impact.
- Pharma could provide some fantastic opportunities
With a forecast growth rate of 7%, we predict pharma & biotech will be the fastest-growing sector for consultants in 2019. In many ways, it is similar to the financial services sector: heavy on regulation, full of new entrants, and crying out for innovation, which means that a whole range of consultants are likely to be kept busy over the next couple of years. Though this growth figure isn’t quite as outstanding as in other geographies, it represents solid growth in a consulting market that lacks maturity.
- Cyber, cyber, cyber
Consultants in the region reported an increase in both the scale and volume of cybersecurity work in 2018, and this looks set to continue through 2019. This is a trend we see repeated across the globe, as clients seek help to deal with the continually evolving nature of threats and the increasing public scrutiny that comes alongside this. In Eastern Europe & Russia, clients are starting to buy cybersecurity work wrapped up as a service, not just as stand-alone projects, so refining your proposition here will be key to winning this lucrative work.
If you’re interested in learning more about the consulting market in Eastern Europe & Russia, please do get in touch—our global data model has all the data points you could need, and more.