Amid continued geopolitical uncertainty and an economic slowdown, 2025 is proving challenging for many consulting firms. However, a new report from Nextcontinent shows that there still are several promising areas for growth.
“As corporate agendas shift, so does the role of consulting,” says the Nextcontinent report. “In a context of slower decision-making and constrained resources, companies are looking for more targeted, faster, and value-driven advisory support. At the same time, consulting firms must adapt – redefining their service models to stay aligned with changing client needs and sector dynamics.”
In their 30-page ‘2025 Business Outlook for Consulting Firms’, the authors explore how slowing client demand is suppressing growth across the sector. And while in times of crisis businesses often turn to consulting firms, the current melange of issues has crafted an environment where clients are more inclined to postpone projects, or look elsewhere for solutions.
As a result, many of the largest consulting companies are currently scaling back their headcount, especially in large markets with saturated demand.
But there always remain opportunities in the market, with Nextcontinent’s report spotlighting numerous areas where demand for external expertise remains high. An overview of six such areas:
1) Operational agility
With the political backlash at globalisation continuing to gather momentum, many of the world’s leading economies have rapidly decoupled in recent years. With that, and the tumult of trade wars currently spurred on by the US administration’s aggressive trade tariffs, a ‘global economic recovery’ is no long a unified concept. Regional powers are now developing unevenly – particularly in the consulting sector’s primary revenue bases of North America and Western Europe.
In some more mature markets, corporations have already implemented first-wave cost optimisation plans, leaving limited room for further cuts – but in others, the worst may still be to come. This means that amid the sustained macroeconomic volatility clients face, widespread budget freezes or reductions, particularly in discretionary spending like consulting, are still on the cards. Responding to this will take a good degree more agility than the one-size-fits-all tool-kit of major firms often offers – and this offers a major opportunity for boutique firms which have traditionally struggled to compete with the brand-power of the industry’s top-tier.
The report notes, “Interestingly, smaller and more agile consulting firms appear to be weathering the storm more effectively. Their flexibility allows them to adapt quickly to changing client demands, offer more customised approaches, and operate with leaner structures, making them more attractive to cost-conscious clients… Consulting firms must pivot toward growth-oriented mandates and adopt more agile delivery models. The ability to demonstrate fast, measurable value is becoming a competitive differentiator in a cautious client landscape.”
2) Technological acceleration and AI
Digitalisation, technological change and innovation have steadfastly been at the top of the consulting agenda for some time – especially in the last decade. Hype for blockchain, cryptocurrency, the metaverse, NFTs and now artificial intelligence have been core selling points for consulting services. The pitch throughout all of those moments has been that to get the best return on investment, firms should turn to consultancies to strategise and oversee the implementation of the right technological transformation for each client’s business needs.
This methodology has come up against increasing pushback in the AI era. On one level, clients may simply be fatigued with consulting firms, who have insisted they can get the most out of technologies that ultimately didn’t pan out. But beyond this, a majority of clients also feel the alleged power of AI can more or less take care of itself.
According to Nextcontinent, a 58% majority of AI leaders claim to have seen exponential productivity gains from generative AI already. But few organisations have actually implemented reliable methods of measuring those benefits – suggesting when the novelty wears off, businesses will still need help to understand where AI is the best fit for their operations – especially when realigning their workforce or cybersecurity efforts around it.
The researchers noted, “Consulting firms can help clients leverage AI to automate processes, improve decision-making, and enhance operational efficiency. Companies will still face major challenges with unstructured data, which remains largely human-dependent.”
“Workforce transformation through robotics and AI will demand flexible organisational models and continuous upskilling to unlock full productivity gains.”
“Cybersecurity will also become a critical area, as AI simultaneously strengthens defences and introduces new vulnerabilities. Firms can provide specialised consulting services to help clients navigate this evolving landscape.”
3) Supply chain
Thanks to the previously mentioned geopolitical shifts that the world is enduring, global supply chains continue to face pressure, balancing resilience against crises with performance challenges. Digital transformation and adaptation strategies are crucial to navigating those challenges – but obstacles such as governance gaps and talent shortages hinder necessary progress. This presents another opportunity for consultants that can pivot quickly.
Relating to the previous point, the researchers argue that the rapid pace of digitalisation is “starting to plateau”, because organisations are struggling to realise the “full potential of technologies such as AI, IoT, blockchain, and digital twins”. Their internal capacity is not built to cope with the demands for a cohesive data infrastructure and system interoperability – so siloed systems and poor data governance hinder cross-functional visibility and decision-making. This is also leading to ESG shortfalls – with only 42% of organisations at least moderately confident their supply chain has mature capabilities to monitor progress.
“Many organisations struggle with fragmented data and limited integration of these technologies,” the researchers explained. “Consulting firms can help bridge this gap by offering solutions that improve supply chain visibility, streamline data integration, and enhance risk management. Furthermore, as regionalisation and nearshoring become more prominent, consulting firms can support clients in optimising their supply chain strategies to reduce dependence on distant suppliers and mitigate the risks associated with geopolitical tensions.”
4) M&A momentum
The global market for mergers and acquisitions is in a state of flux. While deals were broadly said to have recovered in 2024, the huge changes which have occurred since the beginning of the second Trump White House have thrown this into doubt. The US M&A market has experienced a slow start in 2025, with deal activity significantly down compared to previous periods, while only 1,209 deals involving UK companies occurred in the first quarter of 2025 (the lowest since 2017), as value fell by 60% from the previous year.
Despite this alarmingly sluggish start, however, recent studies suggests dealmakers remain moderately upbeat about their prospects across North America, Europe, the Middle East and Asia Pacific – 54% predicting the market will pick up by the end of the year. At the sector level, investing in technology, particularly AI, continues to attract strong interest from both strategic and financial investors, while energy – and renewables – healthcare, and infrastructure-related sectors such as logistics and aviation are also gaining traction. However, to get the most of these deals, clients need to contend with a complex regulatory environment, and factors like ESG criteria and cybersecurity – something they are not well positioned to do in-house.
Nextcontinent’s researchers stated, “Consulting firms can capitalise on this by offering advisory services in strategic due diligence, helping clients navigate regulatory challenges, and ensuring smooth post-deal integration. Focus should be placed on high-growth sectors, including AI, technology, energy, and healthcare, where deal activity is likely to accelerate. By leveraging their expertise in M&A, consulting firms can help organisations identify valuable acquisition targets, assess synergies, and optimise value creation post-merger.”
5) Revolutionising the workplace
Continuing a pandemic-era trend, employee expectations around working from home, and hybridised roles continue to move up the HR agenda. Companies must adapt to demographic and technological shifts, focusing on inclusivity, flexibility, and change management to meet the demands of modern talent – but to do that, they will need to navigate a number of logistic and operational challenges first; something a consulting partner could play a key role in.
This opportunity is enhanced further by demographic shifts, and AI implementation trends. Pointing to research that 150 million jobs could be held by older workers by 2030, while younger workers coming through have changing expectations of office hours, companies will need to develop age-inclusive models promoting flexibility and life-long learning – especially as 30% of current working hours could be automated in the same term. Problematically, many of the largest consulting firms have already come down hard against the idea of hybridised working themselves, but this could present key opportunities for more agile boutiques.
“Consulting firms have an opportunity to assist clients in redefining their talent management strategies,” the researchers confirmed. “This includes helping businesses transition to hybrid work models, optimising office space utilisation, and addressing skills shortages in high-demand sectors like STEM, healthcare, and technology. Firms can also advise on leadership transformation, promoting human-centred management practices that reflect shifting employee expectations and changing workforce demographics.”
6) ESG transformation
A further sign of the dealignment of major economies, is how they have drifted around ESG regulation. The US has once again exited the Paris Agreement, and loosened emissions standards, while rolling back incentives for clean energy. This time, the process has been coupled with a targeted campaign by the White House aiming to push companies into dismantling their diversity, equity and inclusion efforts. Europe has to some extend mirrored the US approach to climate commitments – with a slowdown in ESG enforcement – though its relationship with DEI is more complex.
Even as state and corporate attention wavers relating to ESG, however, consumer demand for authentic and responsible environmental action is intensifying. Amid a surge in extreme weather events and wild fires, climate anxiety is growing rapidly, especially in regions that are increasingly affected. As a result, studies show 61% of consumers are more concerned about climate change than they were just two years ago. Creating a tailored approach in response to these demands of states, shareholders and consumers – especially for firms functioning across multiple regions – is an extremely challenging, and therefore presents an opportunity for consultants.
The researchers concluded, “Consulting firms can assist clients in reevaluating their ESG goals, particularly in light of shifting regulatory environments and growing consumer expectations. There is an opportunity to help companies create more effective, actionable sustainability strategies that align with both environmental goals and business performance. Consulting firms can also help businesses stay ahead of regulatory requirements by offering compliance advisory services and leveraging technology, such as AI, to improve data management and reporting in line with ESG standards.”
