KPMG has £600m consultancy target as accountants rebuild advisory roles

KPMG wants to catch up his 3 other rivals of 'The Big 4'. Within four years KPMG wants to triplicate its consulting revenues to £600million. KPMG audits 25 of the 100 FTSE companies. The FTSE 100 of the British Stock Exchange is similar to the BEL20.

Its ambitious plan is out to recruit 300 consultants over the next 12 months. Without doubt, this is a bright spot in times when redundancies are daily news. The last 3 months, KPMG has recruited 24 senior consultants, who were employed by PwC and Deloitte. I wonder how much KPMG paid to make the senior consultants desert.

KPMG sold his consulting division in 2002 but rebuilt it 4 years ago. Two other companies of ‘The Big 4’, namely Ernst & Young and PwC, did the same after conflicts and scandals. In my view, it was not fair to sell the company for big money and rebuilding it afterwards. Atos Origin, the firm who bought this division paid a lot of goodwill to KPMG. But in 2007 the clients returned to KPMG when they reopened the consulting division.
I definitely think that KPMG is playing a strategic game. Now they recruit senior consultants, they expect that the consulting division will grow, they expect that the consulting division will grow: Clients of PwC and Deloitte will go over to KPMG because the senior consultants could entail clients.

What will the future bring us? KPMG believes that the demand for consultants will rise again when the economy is making progress. The fees for consultants will rice by cost savings in the public sector. But it’s wrong to think that the demand will rise again if the economy becomes better. A lot of companies are bankrupt and others won’t need consultancy because they are cutting down.

The plans of KPMG reflect on the rivals of ‘The Big 4’: Also PwC and Deloitte want to expand. Without doubt, the competition is far from over.

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