Europe is in a state of flux. What with trade changes across the pond and stability in its political powers only recently established, it is difficult for buyers of consulting services to make concrete decisions. Despite all this, businesses cannot “wait and see” forever, and our data can help us unpack where senior leaders are likely to invest—albeit cautiously—in these unpredictable times.
Tough decisions in a difficult market
The story of the consulting market in Europe can’t be told by looking at this market in isolation. The geopolitical shifts of 2024 and 2025 that have created a climate of uncertainty in Europe have been driven as much by the actions of the new US administration as decisions closer to home. With the US becoming more unpredictable, sectors like manufacturing may take a direct hit from trade policy changes, and there could be a ripple of other impacts.
We recently surveyed 500 senior buyers of consulting services across Europe, as part of our Market Trends programme. Their responses clearly demonstrated how the pervading sense of caution arising from market uncertainty is impacting the way they plan and buy consulting work, with over half (56%) saying the majority of their projects had been deferred, descoped, or cancelled in 2024.
Certain investments in an uncertain market
Despite clients deferring and cancelling projects, they’re still determined to invest in their technology. In France, 68% of clients we surveyed said they would increase their technology spending, and in the DACH region, 73% of clients surveyed told us they need to update their technology as soon as possible if they are to survive. This is good news for firms, who are likely to hold the necessary expertise to help clients make the most of these investments.
Within the broad category of technology, generative AI is one area that’s evolving rapidly across the world and, as many leading consultants in the region have pointed out, Europe is not far behind the US in its AI journey. In the UK, over 70% of surveyed clients said they would spend up to 40% of their total consulting budget on the adoption or implementation of AI technology.
However, as much as clients are looking to invest in AI, in keeping with the central theme of this article, they’re doing so cautiously. When we asked clients to describe their attitudes towards AI, over 60% of respondents in the UK said they were either cautious about deploying Gen AI or are doubtful about its impact, and over half of clients in Germany say the same. In France, clients were much more receptive to deploying AI—if they saw a clear business case. What kind of business case? In France, the most cited benefit of AI is in the area of data & analytics, but this technology could touch many areas of the business, front office and back.
Despite differing views on adopting AI within their own organisations, clients across Europe agree on its value when used by consultants. The most widely shared belief is that AI tools in the hands of experts lead to better, more effective solutions.
Workforce issues march into focus
Beyond technology and solving trade challenges, we’re also seeing signs that the fortunes of people, HR & change consultants could be about to change in Europe, as organisations across the continent face pressing workforce issues. In the UK, over 40% of clients report both being severely short-staffed and lacking the internal expertise to tackle new and mounting challenges—two leading reasons why demand for consulting is expected to rise in 2025. In Germany, while staffing concerns are less acute, clients face a broad set of strategic issues that also require external support.
64% of clients said over half their workforce will need different skills in three years time
In France, the focus shifts from headcount to transformation. Clients here are less concerned about staff shortages, but many cite hybrid working and internal collaboration as major barriers to progress. People and HR strategies have not been a recent priority for these clients, but that’s starting to change. Investment in HR, people & change support is on the rise in France, with the service line shifting from -3% growth last year to a projected +3% in 2025.
Together, these workforce challenges are opening the door to new delivery models. Managed services—offering clients ongoing access to expertise—are becoming increasingly attractive. As pressure mounts to do more with less, 2025 may be the year this model sees wider adoption.
Our Market Trends reports covering the France and DACH consulting markets have recently been published, and our report on the Nordics consulting market is forthcoming. To access our insights on the trends that really matter to firms and our wealth of market sizing data, head to our website.