Cinode (Int)

Demand remains weak in the Finnish and Swedish consulting industry

21.11.2024 08:04:00 CET | Cinode (Int) | Press Release

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The turnaround for the consulting industry is taking longer than expected. Growth during the third quarter averaged only 0.6% (compared to 5.5% last year), and for the first nine months of the year, it was just 0.5%. Companies have maintained good cost control, with half reporting higher operating margins compared to last year, though the average margin slightly declined to 4.4% (4.9%).

This is highlighted in Cinode’s latest summary of Q3 reports from publicly listed consulting firms.

Growth average per quarter
Growth average per quarter

 “Most expected a clearer turnaround this fall. Despite gradual improvements, the shift is happening slowly, and the market remains weak this autumn. We anticipate the turnaround will occur by summer instead. However, there are significant differences between sectors. Defense, energy, and cybersecurity continue to experience very high demand,” says Mattias Loxi, co-founder of Cinode, the leading SaaS platform for consulting firms.

CombinedX, Prevas, and Norconsult show the highest growth in the industry, with the first two achieving this through acquisitions.

 “Several consulting firms have also reported negative impacts from the new rental law. Some clients, citing the precautionary principle, have interpreted the law as also applying to consulting firms, while other clients and industry organizations have interpreted it differently. The recent EU ruling clarifies that consulting firms are generally not considered staffing agencies and are therefore not subject to the law. With clearer rules in place, we believe this issue will be resolved soon,” Mattias continues.

Softronic, Gofore, and Tietoevry reported the highest operating margins during the quarter. Several layoffs have been carried out during the year.

 “Half of the consulting firms have fewer employees at the end of September compared to January 1, despite acquisitions. However, the significant reductions made in the first half of the year now appear to have subsided, and we believe companies will soon start growing their workforce again,” concludes Mattias Loxi.

See the full summary of consulting firms’ Q3 2024 reports in the Infogram

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Growth average per quarter
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2024 q3 bubble growth ebit
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2024 Q3 Growth
2024 Q3 Growth
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2024 Q3 EBIT margin
2024 Q3 EBIT margin
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2024 Employees changes from January 1:st to September 30:th
2024 Employees changes from January 1:st to September 30:th
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About us

Founded in Stockholm in 2010, Cinode is the leading SaaS platform for consulting firms in the Nordics. We bring CRMskills management, and resource planning together in one AI driven platform built specifically for the consulting industry. Close to 300 consultancies use Cinode to grow profitably by improving sales, delivery, and talent management, while more than 9,000 consulting firms collaborate within the Cinode network to find the right expertise and create new business opportunities. The result is faster responses to client demand, higher utilization, and smarter data driven decisions.

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