A growing trend of the last couple of years in the IT Services market is the return of the Accounting and Auditing firms in the provision of a broad range of primarily consulting based IT consulting services. Deloitte Consulting never actually went away, but in particular we have seen growth from PwC , KPMG and Ernst and Young. Australia has been the strongest market for these providers in the Asia Pacific region, but there has been some strength in China, the Middle East and ASEAN.
It is not surprising that the conflicts of interest that led to the decline and fall of consulting firms in the beginning of this century have not gone away. Deloitte Consulting just basically ignored it and came out the other end with no real change. PwC was sold off to IBM and has only recently accelerated its capabilities following cessation of the non-compete. KPMG became Bearing Point which is still dying a slow death where it still exist. The new KPMG is smaller than in their more heady days and will play a niche role.
Given that most regulators are typically best toothless, it is my view that no regulation will occur to prevent the growth of these firms in the near future. It is not likely that they will rise to their former glory, but they will not have significant limitations on their growth either.
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