The market for management consulting services is two-tiered, with a top level that dominates in value and a low level that dominates in client numbers. These are the findings of a study aimed at developing a strategy for the development of the Caribbean management consulting industry commissioned by Caribbean Export Development Agency (Caribbean Export).
According to the study, 63.4% of clients spend under US$100,000 annually on consulting assignments, accounting for just 10.1% of the market, while 12.9% of clients spend over US$500,000 each year, accounting for about 62.3% of the market.
Most Caribbean consulting firms are small operations with fewer than four employees, and most of them (72.6%) are struggling to be profitable and are operating at the low value end of the market. While a number of these small firms (27.4%) meet profitability standards, most of them are struggling to be profitable and have varying levels of expertise.
The study recommends that, to address this, there is a need to develop the small business market to take advantage of higher value consulting assignments, while on the supply side an increase in tailored business development services would be beneficial.
The study also suggests that despite the availability of consulting opportunities, many regional firms find it difficult to increase business because of a lack of strategic guidance and stiff competition from non-Caribbean firms. There is also little information on the regional industry, which makes it difficult to plan for and provide assistance to consultants.
Management consultants in The Bahamas, Barbados, the Dominican Republic, Jamaica, Martinique, St. Lucia and Trinidad & Tobago were surveyed as part of the study, commissioned by Caribbean Export Development Agency (Caribbean Export) and the Caribbean Institute of Certified Management Consultants (CICMC).
To download the study visit our Online Business Information Centre (OBIC) www.carib-export.com/login/obic.