After some key UK and global acquisitions, Wavestone have emerged as a strategic transformation consultancy with 5,500 employees in 17 countries – and with the ambition of presenting clients with an independent alternative to the ‘Big Four’. Chris Gibson, UK practice lead, notes how the UK is one of the company’s strategic markets, and explains how Wavestone is positioned to help with the trends he’s seeing in the UK consulting market.

How is Wavestone faring in this challenging consulting market?

I’m pleased to say that the UK business has so far been pretty resilient, considering the pressures of inflation, geopolitical uncertainty and supply chain instability and the many other challenges. I think a key reason is that our offering is just as relevant to clients in the economic ‘bad times’ as the ‘good times’’.

I’d also say that we’ve benefited from a huge amount of internal momentum as a result of bringing together several companies into ‘one’ global Wavestone. This has given our employees exciting new opportunities to work on international projects with global clients, and also to work and socialise with their new colleagues. Nearly 5,000 of us met up in Paris recently, which was a great opportunity to spend time (and party!) with new colleagues from across the business.

How do your ‘new’ global colleagues see the UK consulting industry?

In the UK, the company has tripled in size over the past three years and recently moved into new premises near Liverpool Street, London.  We are definitely seen as a driver of innovation in consulting, and our UK team is a resource that our global clients really appreciate and draw. The team are very talented, drawing on our skill sets across Business Advisory, CIO Advisory and Cybersecurity are in high demand by clients across the globe.

How does Wavestone see itself in the consulting market?

Another reason Wavestone have been resilient in the UK is that companies are increasingly keen to try alternatives to the Big Four and the contracting market. As recently reported by Source Global Research, “there is a clear willingness to try new consulting firms, with 34% intending to use a mix of familiar and novel firms”.

Wavestone manages to hit the ‘sweet spot’ between being able to provide clients with global scale (we’re now in 17 countries) while remaining agile and ‘manageable’.

What trends are you seeing in the UK consulting market?

The biggest trend we see is that clients increasingly want access to deep expertise – people who have solved the same problem elsewhere and bring innovative ideas that deliver lasting value. There’s a lot of talk about the huge AI trend – the MCA Annual Report found ‘94% of consultants believe that AI and emerging technology will provide the biggest opportunity for growth in consulting this year’. However, the harsh reality is that many clients are simply not ready: they need to get their Data, Operating Models and IT estate lined up, and in good shape, before they can take advantage of AI.

Cybersecurity and resiliency

In these times of heightened operational risk, CXOs are regularly experiencing existential threats to their business. High profile incidents – such as the recent CrowdStrike outage – only serve to increase the strong demand for services such as Cybersecurity and Operational Resilience.

Operating model and CX change

In the UK in particular, we’ve seen an uptick in clients requesting help with operating models and change due, in part, to the increase in M&A – there’s been a 10% increase already in the first half of 2024. Business and IT operating models are critically important in M&A, and we’ve found that clients value our experience of having delivered more than 150 Operating Model engagements – particularly when it comes to helping them avoid common stumbling blocks.

Another reason behind the uptick in Operating Model demand is that clients are looking for strategic transformation driven by Customer Experience (CX) – and need to line up their Operating Model to deliver this. Clients understand that a differentiated CX can drive business growth; the July UK Customer Satisfaction Index^[1] shows that levels of satisfaction continue to fall, so investment here is pressing.

Cost optimisation

Linking back to client interest in AI/Generative AI – we’re actually helping clients take a pragmatic approach here. They are usually operating within tight IT budget constraints so first need to free up investment for strategic or innovative programmes.

We’ve also found the subdued UK economy has inevitably delayed client’s decision-making on some projects – but, again, resulting in strong demand for cost optimisation, automation and efficiency as well as rightsizing / outsourcing projects.

Risk and regulation

We also see clients looking for urgent help with risk and regulation. The potential for companies to fall foul of regulatory requirements – such as DORA, GDPR or Consumer Duty – has risen noticeably, as has the range and extent of fines and criminal proceedings imposed. In response, to avoid such costly reputational damage, we’re helping our clients in all industries implement best-practice risk management.

Culture

Although expertise is clearly what our clients want, it’s our culture that brings this alive for clients. We naturally want to attract the best clients – and employees- so building our culture is a key focus. My personal ambition is to build and maintain a diverse and inclusive culture that fosters a sense of belonging, and where people feel supported in their professional development.

I’m very proud that we’re recognised among the UK’s Best Workplaces in Consulting & Professional Services, Best Workplaces for Development, Wellbeing and Women and a recognised in the UK’s Top 35 companies for the Great Place To Work certification, both of which I’m keen to drive in future years.