IANS, FEBRUARY 17, 2004

LONDON: Management consultants in Britain have recorded unprecedented annual profits of £10 billion from the large demand for advice on outsourcing to low-wage countries such as India.

Total spending on consultants rose 9.4 per cent in the 12 months ended December 31, double the rate of growth in the previous year, according to the Management Consultancies Association (MCA).

Spending on advice about outsourcing rose 28 per cent in 2003. MCA executive director Bruce Petter said: "While we did not expect a return to double-digit growth in 2003, if ever, the increase in IT and outsourcing consultancy over the past 12 months has supported a return to significant growth after a tough year in 2002, which is extremely encouraging for the consultancy sector".

"MCA member firms are also expecting the sales cycle for IT work to shorten in the next quarter, which suggests this trend will continue through 2004."

The survey found that MCA members were particularly confident about winning business from the primary industries -- including utilities, mining and metals -- as well as financial services and the public sector.

Consultants' confidence in Britain's economy has risen for the past four quarters, after declining for most of 2002