Consultants get rich from outsourcing

Outsourcing may be more commonly associated with job losses but there's one group claiming that outsourcing means they're in the money – management consultants.

While the idea of management consultants reporting a bumper earnings might not come as a surprise to most people, the Management Consultancies Association have announced that profits have risen and their freshly lined coffers are in part thanks to the trend for outsourcing.

Statistics published by the Association show that outsourcing consultancy has grown by 20 per cent since the second quarter of 2002 and by 8.4 per cent since the first quarter of the this year alone.

Ian Watmore, president of the MCA, said in a statement: "Companies and government agencies have shed a great deal of cost through outsourcing their IT departments. Taking those savings to the bottom line is of course tactically attractive. But many also realise that there is a strategic value in reinvesting these savings to help them transform legacy IT".

The Association also believes that the outsourcing and IT consultancy good times will continue in the coming months, particularly in the public sector.