Key facts
- The Big Four consultancy firms experienced a period of rapid double-digit growth during the pandemic.
- Post-pandemic, growth has slowed to single digits, with PwC UK and Deloitte UK reporting 2% revenue increases.
- KPMG is planning to cut 200 jobs from its advisory business.
- C-suite executives are increasingly looking to reduce reliance on external consultants.
- The global consulting market is projected to grow at 5-7% annually, down from pandemic highs.
The pandemic provided a temporary 'sugar rush' for the Big Four consultancy firms, leading to significant revenue and headcount growth. However, this era of double-digit expansion has ended, with firms now facing a more challenging environment characterized by slower single-digit growth, increased layoffs, and a growing trend of C-suite executives seeking to reduce their reliance on external advisors.
PwC UK reported 2% revenue growth for the year ended June 30, 2026, with profit per partner rising slightly but group revenue declining due to the Middle East conflict. Deloitte's UK arm followed with 2% revenue growth to £5.81bn, though its global revenues saw a more modest 3.8% increase to $74.5bn, with its consulting department's growth slowing to 2.5% from 4.7%.
EY and KPMG are expected to release their results later in the year. Despite the slowdown, single-digit growth is still considered positive, especially against the backdrop of sluggish UK GDP. However, consultants are under pressure to demonstrate tangible value and innovation to justify their fees, as a Source report indicates 26% of C-suite executives are actively reducing their dependence on external advisors. Catherine Anderson, director of delivery at Source, acknowledged that while clients may wish to reduce reliance, consultants remain necessary for their wider perspectives and fresh ideas.
The global consulting market is now projected to settle at an annual growth rate of 5-7%, a sharp decrease from the pandemic-driven expansion. The industry is urged to adopt a dose of realism and measure itself against pre-pandemic levels and the broader economy, rather than its recent 'golden era'.