Clients are postponing long-term technology projects in favour of cost- cutting, restructuring and sector-specific advice on coping with the changing global economy. In some cases, they are also demanding that fees be linked to specific performance targets.
The $300bn global market is changing so quickly that Kennedy Consulting Research & Advisory, one of the main data providers, is tearing up both its estimates for 2008 and its forecasts for the next couple of years.
The research group now thinks that overall revenue in North America and Europe will at best grow by 4-5 per cent – half of last year's increase – and may shrink in 2009.
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