Tough and good times for consultancies Companies in crisis are looking for advice

The need for consultancy services is rising as companies are struggling to survive amid the unprecedented economic and financial crisis. The irony is that this need cannot be easily transformed into real demand because it is not enough to be willing to buy a service. One must be able to pay for it. For this reason some of these consultancies have to offer discounts to their customers while other consultancies provide their services under programs supported by non-governmental organizations (NGOs). The advisory services that are in most demand are obviously cash flow management, risk and debt management, cost cutting, and survival plans. ‘Crisis management’ has become a buzzword and a marketing tool for many advisory firms. Some consultancies provide their expertise through training sessions and workshops while others offer customized solutions to their customers and help them apply the measures they suggest.

Finding opportunities in disasters

Demand for advisory services increases in times of economic boom when businesses want to invest, or during economic stagnation when they need to survive and to minimize their losses, according to , Senior Partner at Alyafi Group, an auditing and consultancy firm. She said that demand for crisis management services at Alyafi Group started six months, General Manager of consultancy and training firm Saber Middle East, around 20 percent of their existing clients, have sought advisory services due to the current crisis. Word of mouth is a major marketing tool in the consultancy business. “New clients are mainly referred by our existing customers or their acquaintances,” Saber said. The company also uses social media channels to reach new clients. According to Saber, more businesses may need professional help with the escalation of the crisis. Clients who received advisory services and achieved quick wins are referring other clients to the consultants, said , Managing Partner at Crowe Horwath Professional Auditors. Increasing cases of default on payments in the private sector are likely to boost demand for professional consultancies, he said. The public sector is also a potential client for consultants and auditors. Public sector restructuring, at a later stage, may open the door for advisory and consulting companies, according to Hammoud of Alyafi Group.