Cinode AB: Q1 2023 - Growth continues in the consulting industry
STOCKHOLM, May 17, 2023 /PRNewswire/ -- The trend of strong growth figures for Swedish and Finnish listed consulting firms continues during the first quarter. However, the growth is slowing down, and considering the high inflation, it is no longer particularly robust. The demand is generally good but highly differentiated.
The EBIT-margins are almost on par with last year. This is shown in the new infographic of the quarterly reports of the publicly listed consulting firms in Sweden and Finland.https://cinode.com/en/business-en/
– During Q1, we observe a more differentiated consulting market. Companies with exposure to energy, the public sector, and cybersecurity are strong, while other areas, primarily real estate, telecommunications, and retail, face more challenges. Generally, consulting firms have not been significantly affected by the economic downturn. However, decision-making for new projects takes considerably longer," says Mattias Loxi, CMO and co-founder of Cinode, the leading SaaS platform for consulting firms in the Nordic region.
The growth remains strong with an average of 17.6 percent. However, considering the ten percent inflation rate, it is not as impressive. Many companies have been able to offset increased costs with higher fees. Vincit, Addnode and Gofore experienced the highest growth rates.
– After last year's record demand, we are now back to a more 'normal' level. With that comes increased competition for assignments, and the job market is no longer overheated, says Mattias.
The EBIT-margins are almost the same as last year. With one extra calendar day, half of the companies have managed to increase their margins. Exsitec, Prevas and Gofore show the highest margins.
Many international companies have reported on staff reductions. In the Nordics, Tietoevery has also announced cost-saving measures.
– So far, we haven't seen any major staff reductions. However, the growth on the employee side is significantly lower than before. Half of the companies have increased their staff, while the rest have decreased. This is due to both lower new hiring and fewer acquisitions. The acquisitions, in general, have also been smaller, says Mattias.
Combined X, along with Gofore and Precio Fishbone, has experienced the highest growth in terms of the number of employees during the last three months.
Cinode is the leading SaaS service specifically developed for consulting firms in IT, technology, and management consulting. Today, it offers specially developed modules for competence management, CVs, CRM integrated with delivery and resource planning, as well as efficient management of partners and subcontractors.
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