Worldwide Consulting Revenues Will Near $125 Billion In 2004.Along with large growth, the consulting market will experience heightened competition, significantly altering market dynamics. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. IDC, the Internet economy The Internet Economy refers to conducting business through markets whose infrastructure is based on the Internet and World-Wide Web. An Internet economy differs from a traditional economy in a number of ways, including: communication, market segmentation, distribution costs, and price. will help to more than double worldwide consulting revenues from $60.1 billion in 1999 to $124.5 billion in 2004. However, Internet services pureplays and spin-off companies from other industries will all fight to get in on the opportunity. "At the same time that the Internet has provided tremendous opportunities for consulting services, the changes it has instigated have created considerable challenges to the more established firms, which are finding themselves in a completely new competitive environment," says Sophie Mayo, program manager for IDC's Worldwide Services research. "New consulting firms are springing up almost every day and grabbing clients' attentions. These newcomers are beginning to usurp u·surp v. u·surped, u·surp·ing, u·surps v.tr. 1. To seize and hold (the power or rights of another, for example) by force and without legal authority. See Synonyms at appropriate. 2. the position of the established firms. To fight off this threat, the older firms will have to revamp and reinvent themselves." Regardless of the tight competition, consulting firms will have the chance to experience tremendous growth. The United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. is and will remain the biggest opportunity. In 1999, it accounted for 52.3 percent of worldwide revenues. Although its share will decline, it will still account for 51.6 percent of the market in 2004. The fastest-growing regional markets for consulting services will be in Asia/Pacific (excluding Japan). Consulting revenues in this region will increase at a compound annual growth rate (CAGR CAGR See: Compound Annual Growth Rate ) of 26.8 percent from 1999 to 2004, compared with a 15.7 percent CAGR for the overall market. Other fast-growing regions include an area IDC defines as rest of the world, which includes Eastern Europe Eastern Europe The countries of eastern Europe, especially those that were allied with the USSR in the Warsaw Pact, which was established in 1955 and dissolved in 1991. and the Middle East, and Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. . Economic recoveries and the relatively small base from which they are growing from will contribute to these regions' high growth. In terms of vertical markets, manufacturing and banking spend more on consulting than other industries. In 1999, discrete and process manufacturing spent more than $6.7 billion on consulting. That amount will grow to over $13.5 billion in 2004. During that same time banking's consulting revenues will grow from almost $5 billion to just over $11.5 billion, representing a CAGR of 18.4 percent - faster than any other industry. |
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