Consultants dismiss Big Four challenge

Consultants dismiss Big Four challenge
Consultants dismiss Big Four challenge

05/18/2007, 02:41 [Accountancy Age]


Kevin Reed, Damian Wild

and Michelle Perry

Two of the heads of the UKs largest consulting firms have poured scorn on the Big Fours attempts to get back into the advisory marketplace, saying they lack the breadth of service of their established rivals and fail to meet the needs of clients.

The comments are set to ignite a row in the market, which some of the Big Four have only just re-entered after hiving off their arms in the aftermath of Enron.

But the concern shown by the established players may also suggest that the Big Four are already starting to get a foothold, the firms said.

Accenture UK managing director David Thomlinson (pictured) and Capgemini UK consulting CEO Tom Blacksell hit out the Big Fours efforts in rebuilding their consulting arms after divesting them at the turn of the century.

Blacksell said clients were more discerning and that consultants needed to carry out as well as advise on work: The ability to execute and advise: I see that as being a pre-requisite to being successful in the market. Those that cant provide the organisational wherewithal to be credible in execution as well as the advice, may well pick up some work, but theyll have limited aspirations, said Blacksell.

The Big Four say they only work providing advice on IT, for example, and not implementation

Thomlinson said: If you contrast the business theyre in compared to Accenture, we clearly have much greater breadth and depth. Its not just based around providing advice and reports, but having the capability to deliver results.

The Big Four hit back, suggesting that the consultancy firms were scared of their move back into the market. Alan Buckle, CEO of advisory KPMG Europe, said the consultancies criticisms were a sign of the Big Fours success.

Its clear that in advisory were seen as extremely credible, an obvious choice. But theyre right that we dont intend to compete in IT integration and outsourcing. Some clients want us to sit alongside them opposite an IT integrator, other times theyll choose an Accenture to do the whole thing, said Buckle.

Deloitte consulting MD David Owen said if the firm was failing to offer relevant services to clients then we would not expect to achieve levels of growth.

Owen also denied claims by Blacksell that Big Four consulting divisions had been built on Sarbox and IFRS work: Those services are provided through audit, assurance and tax service lines.