Changes in the Client-Consultant Relationship

Abstract

The recession of the early 1990s was the first — and so far only — time that modern Consulting firms have encountered any significant decline in the demand for their services.¹ By contrast with other sectors, the problems suffered by consultancies were comparatively light, but they were still sufficient to produce redundancies and insolvencies. The experience was a shock for the industry: accustomed to an environment of continuous growth, consulting firms were poorly prepared for the operational efficiencies required by the new market conditions: many saw a sudden and dramatic fall in profits.