Challenging 2023 for the Nordic Consulting Firms
2023 was both a tough year and a challenging final quarter for consulting firms. The average growth for publicly listed consulting companies in Sweden and Finland during Q4 was only 3.1 percent, compared with 15.3 percent in 2022. Furthermore, a quarter of the companies had lower revenue than the year before.
We primarily see weaker demand in many industries while the number of employees has been adjusted. The number of inquiries for new assignments during the quarter decreased by 14.6 percent according to Ework.
"Many consulting firms have faced significant challenges. At the same time, the market is diversified with several companies that continue to perform strongly. Energy, automotive industry, life science, defense, and cybersecurity continue to show very strong demand. However, it has been considerably tougher within real estate, e-commerce, telecom, and public authorities," says Mattias Loxi, co-founder of Cinode, which is the leading SaaS platform for consulting firms.
Addnode, Sweco, and Rejlers grew the most during the quarter. All have acquired larger companies during the year.
"Margin-wise, two-thirds of the companies have worse operating margins than last year. Many companies that were strongly affected by the economic cycle have quickly implemented cost savings and managed to reduce expenses," continues Mattias.
Exsitec, Gofore, and Softronic have the highest margins for the quarter.
"Two out of three consulting companies have fewer employees in the last quarter compared to one quarter earlier. On an annual basis, we see that half of the companies have reduced their workforce," concludes Mattias.
---
Mattias Loxi
Co-founder/CMO
mattias.loxi@cinode.com
+46 73-514 21 70
---
About Cinode
Who knows what, who’s available, what can I sell? Cinode is the all-in-one Saas-platform that boost consultancy's growth by giving crucial insights into sales, delivery, and skills.
“Cinode is the best solution on the market for consulting companies” - Jami Sjöblom Sales Director, Nitor.
Cinode, established in Stockholm in 2010, has emerged as the leading Saas-platform for consultancy firms in the Nordics. Cinode enhances growth and profitability. It provides essential insights into sales, delivery, and skills, helping nearly 300 customers streamline operations. The platform's capabilities include quick client response times, optimized utilization, and transparent information for informed decision-making.
Apart from boosting internal efficiency, Cinode connects you to an expansive network of over 5000 consultancies. This network facilitates collaboration around deals and skills.
Learn more at https://cinode.com/en/
