The Industry in Figures 2013 - Spanish Association of Consulting Firms
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2013
Consultancy in Spain
The Industry in Figures 2013
Spanish Association
of Consulting Firms
a
ec
Consultancy in Spain
The Industry in Figures 2013
Spanish Association
of Consulting Firms
a ec 2 Spanish Association of Consulting Firms
Contents
Introduction 4
Consultancy in Spain in 2013 6
Challenges of innovation in Spain 20
Acknowledgements 23
AEC members 24
Consultancy in Spain · The Industry in Figures · 2013 3
Introduction
Manuel Pimentel
Chairman of the Spanish
Association of Consulting
Firms (AEC)
In 2013, for the first year since abroad have earned the approval telecommunications and
we began keeping industry of the world’s most advanced government. Government, in
records, turnover of Spanish markets. In particular, the particular, has always entrusted
consultancy firms was down on competitiveness of the leading consultancy firms with designing
the previous year. This downturn, Spanish consultancy firms is technical and organisational
coming as it does after nearly a reflected by an annual average solutions that will contribute to
decade of sustained growth, was increase of 12.5% in overseas the efficiency of its operations
exclusively caused by a downturn in sales over the last five years. and, in particular, provide better
domestic demand resulting from attention to the general public.
an extraordinarily acute and Indeed, the greatest cause for
complex economic crisis, whose optimism is this capacity by our The industry is ready for this new
consequences are comparable to companies to offset loss of stage. Throughout the crisis it has
the oil crisis of the 1970s or income on the domestic market kept up a strategy of retaining
indeed the great recession of the with greater penetration abroad. staff levels and has continued to
1930s. The forecast improvement in the invest heavily in personnel training.
economic situation must be Last year, the industry spent €36
It is to be hoped, however, that the sufficient to allow the industry to million in this area; even more
worst of the crisis is now over. recover the growth rates it significantly, it has maintained the
Reports from international bodies enjoyed until recently. number of effective training hours
point to abundant signs of recovery Expectations in the industry are received by employees despite
in the Spanish economy; slowly but high; turnover is forecast to rise adverse economic circumstances.
surely the country is regaining the by 3.3% next year, encouraged by In other industries, staff training is
confidence of financial markets, demand from key industries sometimes viewed as an expense;
and companies representing Spain – financial institutions, for consultancy firms however, it is
4 Spanish Association of Consulting Firms
a clear investment – perhaps the for partners with organisational services for clients; and with the
most important of all. and technological skills who can be certainty that economic recovery
tasked with performing some of will usher in a new scenario in
The industry currently provides their processes. This is a positive which Spanish consultancy firms
quality employment to around step for Spanish consultancy firms, can convince their clients of the
137,500 people, 76% of whom which are not only proving capable quality of their services and begin
have completed third-level of responding to the demand, but a new stage of growth.
education. Given the current have turned it into their principal
situation of the Spanish labour source of income (44% of sales I would like to extend my personal
market in Spain, these figures are now come from these services). At thanks to the companies that have
significant; few other industries the same time, it also means that provided the information on which
are in a position to offer such the industry is contributing to this report is based. I also trust it
large number of high quality efficiency in production and, will prove useful, both for those
positions. ultimately, to the economic growth working in consultancy and for
and progress of the country as a anyone with an interest in the
At the same time, Spanish whole. industry.
consultancy firms have become
important providers of outsourcing The time has come to face up to
services for other Spanish and the new challenges, in the
foreign companies. In the present confidence that the years of crisis
struggle for competitiveness, have made us stronger; with the
companies around the world are assurance that business
waging an ongoing battle for opportunities exist both on foreign
greater efficiency and are looking markets and in more attractive
Consultancy in Spain · The Industry in Figures · 2013 5
Consultancy in Spain
in 2013
Executive summary internal composition by markets; types of
service performed and client industries;
This report details key figures on the size and make-up of the workforce; amount
performance of Spanish consultancy firms. spent on employee training; and forecast
It is meant to stand as an instrument for revenue for 2014.
serious and profound reflection on the
position of the industry, both now and going The figures for 2013 complete a ten-year
forward. series begun in 2004, offering standardised
data that help identify clear trends that will
The data set out here are drawn from the also be discussed in the report.
answers submitted by companies in the
industry to the questionnaire of the From our analysis of the information, we
Spanish Association of Consultancy Firms can draw the following conclusions, among
(AEC) and refer to the situation in Spain in others:
2013. Among other information, the
report discusses turnover of Spanish • The situation of the Spanish economy
consultancy firms in Spain and abroad; was unfavourable for growth in the
6 Spanish Association of Consulting Firms
In 2013, the domestic
market contracted by 4.5%.
This fall was not fully offset
by a 10.7% increase
in overseas sales.
consultancy industry in 2013. The for 30.1% of the industry’s income, a
domestic market for our services proportion which is more than likely to
shrank by 4.5%, a reduction which has rise in the future.
not been entirely offset by a 10.7%
rise in overseas sales (total turnover • For several years, consultancy firms
was down 0.4%). have been containing prices and
margins; although this has impacted
• The current economic recovery income, it has enabled them to a great
augurs a return to the path of growth extent to retain their staff levels and
for 2014. A 3.3% increase in sales is thus their intellectual capital. This policy
expected, encouraged by demand is all the more evident when net
from government, telecommunication employment figures for the industry are
firms and financial institutions. compared with job losses on the Spanish
labour market in general and specifically
• The share of overseas sales continues to in knowledge-intensive service industries
increase. The sum of exports and sales – the best benchmark for the
of overseas subsidiaries now accounts consultancy sector.
Consultancy in Spain · The Industry in Figures · 2013 7
• Similarly, consultancy firms have Income of the consultancy
maintained an HR strategy based on industry
quality personnel and ongoing training.
Although spending on staff training fell The Spanish consultancy industry is in
slightly between 2011 and 2013 (from the midst of a process of progressive
€305 to €260 per employee), training internationalisation. This is partly due to
hours per employee remained a shortage of growth opportunities in
practically unvaried in the same period. the current recessionary context at
home. The dynamism of sales in
• During 2013, outsourcing services non-Spanish markets contrasts with a
became the main source of income for relative sluggishness of growth in
Spanish consultancy firms, consolidating a domestic demand in recent years. This
trend that has been observed since 2004. has led to a substantial shake-up in the
composition of earnings by geographical
• Financial institutions continue to be the market; in a relatively short space of
leading clients of Spanish consultancy time, overseas sales have risen from a
firms. Income from sales to 19% to a 30.1% share of the industry’s
government has been hit by the total income.
economic crisis and the austerity
measures implemented by successive This trend first began with the onset
Spanish governments. of the economic crisis that is still
Table 1. Composition of income of Spanish consultancy firms by geographical market
(2004-2013)
100%
90% 16% 18% 17% 19% 19% 18% 21% 21,5% 27,1% 30,1%
80%
70%
60%
50%
40%
84% 82% 83% 81% 81% 82% 79% 78,5% 72,9% 69,9%
30%
20%
10%
0%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Income from services performed outside Spain Income from services performed within Spain
Source: AEC.
8 Spanish Association of Consulting Firmsaffecting the country. Before 2008, multiplied by a factor of 1.8,
the relative proportion of domestic and representing annual average growth
overseas sales remained largely rate of 12.5%; between 2004 and
unchanged. From that point on, 2008, it had increased by 15.8% per
however, the share of income from annum.
abroad rose sharply. However, the
growth rate in this area is not This shows that the increased share of
substantially different to the pre-2008 overseas sales is due more to a slow-down
period. Between 2008 and 2013, in the Spanish market than any
sales by Spanish companies abroad acceleration on foreign markets.
Table 2. Income from sales on the Spanish market (million euro)
10,000 National market
3.9%
AAGR =
7,745 7,821 7,844 7,845 7,712
8,000 7,362
6,928 1.7 %
6,245 4.5 %
5,666 0.0 %
6,000 5,223 0.3 %
1.0 %
4,000 11.8 %
10.9 %
10.2 %
2,000
8.5 %
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
AAGR: accumated annual growth rate.
Source: AEC.
Table 3. Income from sales on overseas markets (million euro)
3,500 International markets
3,175
2,868
3,000
14.0%
AAGR =
2,500
2,150
2,059
2,000 1,759 1,751
1,634 10.7 %
33.4 %
1,500 1,228 1,324 4.4 %
17.6 %
977 0.4 %
1,000 7.7 %
23.4 %
7.9 %
500 25.7 %
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
AAGR: accumated annual growth rate.
Source: AEC.
Consultancy in Spain · The Industry in Figures · 2013 9For several years, If we examine the period from 2004 to
2013, we can see two clearly differentiated
consultancy firms have phases. From 2004 to 2008, sales grew
at a rate of 10.3%, representing an
been containing prices
increase in turnover on the domestic
and margins, negatively market of over €2.5 billion; the period from
2008 to 2013, in contrast, was marked by
impacting income. clear stagnation and a gradual decline in
However they have earnings (1% per year).
largely retained staff On the overseas market, total income from
levels and thus their exports of services and sales by
subsidiaries grew by 10.7% to 3.18 billion
intellectual capital. in 2013.
In accumulated terms, from 2004 to 2013
sales abroad rose by 2.2 billion euro, a
325% increase.
Unlike the previous year, in 2013
increased revenue earnings from overseas
For the second year running, sales on the sales failed to compensate for the drop in
domestic market fell in 2013, this year by sales to Spanish business and government
4.5%, with domestic income totalling and the industry’s total turnover was down
€7.36 billion as compared to €7.71 billion 0.4% from €10.58 billion to €10.537
in 2012. billion.
Table 4. Total income from sales of Spanish consultancy firms and their subsidiaries abroad
(million euro)
12,000
6.1%
AAGR = 10,580 10,537
9,903 9,995
9,504 9,572
10,000
8,561
5.9 % 0.4 %
7,570
8,000
6,894 0.9 %
6,200 3.5 %
6,000 0.7 %
11.0 %
4,000 13.1 %
9.8 %
2,000 11.2 %
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
AAGR: accumated annual growth rate.
Source: AEC.
10 Spanish Association of Consulting FirmsEmployment in the consultancy drop of 2.9%. A more appropriate
industry benchmark for employment trends in the
industry can be found in knowledge-intensive
As of 31 December 2013, the Spanish services. The information published by
consultancy industry employed around EUROSTAT in this field goes up to the end of
137,500 people in Spain and its overseas 2012; during that year, employment in
subsidiaries, some 1,500 more than the knowledge-intensive services fell by 4.1%,
previous year. However, the total workforce more than in the economy as a whole
of the industry in Spain fell by around (3.5%), and well above the national
1,000, meaning that the increase is consultancy industry, which saw a 1.4%
entirely due to overseas expansion, via the drop.
subsidiaries of Spanish consultancy firms.
These data appear to confirm that
The drop in the number of employees in Spanish consultancy firms are aware
Spanish-based units needs to be viewed that their most important resource is
within the context of a particularly negative the accumulated intellectual capital of
year for employment, with the number of their employees; despite the general
registered salaried employees falling by over panorama, they are working even harder
393,000. Indeed, the workforce of the to maintain employment than companies
consultancy industry in Spain fell by just in other sectors whose chief asset is
0.9%, as compared to an overall national knowledge.
Table 5. Variations in workforce of Spanish consultancy firms, salaried social security
contributors and employment in knowledge-intensive services in Spain
50%
42.1%
2012/2011
40%
2013/2012
30%
20%
10% 7.8%
6.0%
1.1%
0%
–1.4% –0.9%
–3.5% –2.9% –4.1%
–10%
Workforce of Spanish Workforce of Spanish Total workforce Salaried social Employment in
consultancy firms consultancy firms of Spanish security contributors knowledge-intensive
in Spain in subsidiaries consultancy firms in Spain services
outside Spain (2012/2011)
Sources: workforce of Spanish consultancy firms: AEC; salaried social security contributors Ministry of Labour and Immigration Annual Report;
employment in knowledge-intensive services: EUROSTAT.
Consultancy in Spain · The Industry in Figures · 2013 11In the long term, the consultancy greater quality than those in the rest of the
industry has shown itself to be an labour market.
important source of qualified
employment over the last ten years, Employees in the industry are generally
creating around 59,000 jobs between better-educated than the Spanish average,
2004 and 2013. This level of job even despite a sustained rise in
creation is all the more remarkable in a qualifications among the Spanish labour
period of economic crisis that has hit force in recent years.
employment in Spain particularly hard.
The Spanish economy has suffered six In 2013, 26% of Spanish workers had a
successive years of net job losses; in the university degree, four percentage
same period, however, consultancy firms points up on 2005 (data from the
created around 25,000 new jobs, with Workforce Survey). Given university
the only net loss experienced in 2009. enrolment levels, this proportion is very
likely to continue growing; nonetheless,
The industry’s contribution to job creation is it will be hard-pressed to match the
not solely quantitative. Consultancy firms current rates in the consultancy
make intensive use of knowledge and in industry, where 76% of staff have a
general, the positions they offer are of third-level qualification.
Table 6. Growth in workforce of Spanish consultancy firms and salaried social security
contributors in Spain (2004-2013)
25% Workforce of Spanish consultancy firms
22.5%
Salaried social security contributors
20%
14.0%
15%
10%
7.5%
6.0%
5.4%
4.5% 4.6%
5% 3.3%
2.3% 1.9%
1.1%
0%
–1.0% –0.8%
–1.7% –1.5%
–3.5% –2.9%
–5%
–5.9%
–10% 2005/2004 2006/2005 2007/2006 2008/2007 2009/2008 2010/2009 2011/2010 2012/2011 2013/2012
Sources: workforce of Spanish consultancy firms: AEC; salaried social security contributors Ministry of Labour and Immigration Annual Report.
12 Spanish Association of Consulting FirmsIt comes as no surprise, then, to see Consultancy firms
that consultancy is one of the careers of
choice for the most talented Spanish have maintained an HR
university graduates. This interest is
strategy based on quality
further reinforced –among other factors–
by the educational intensity of firms in the personnel and ongoing
industry. According to 2012 data from
the National Statistics Institute, average
training.
annual investment in training per
employee came to €102, nine euro down
on the previous year. This contrasts with
a figure of €260 in Spanish consultancy
firms.
Total spending on training in the industry
has fallen in recent years from €39 to rein in spending on training without
million in 2009 to €36 million in 2013. cutting the actual amount of training
This cut in the training budget may be received by their employees.
considered normal in a period of
systematic cost containment. With most consultancy firms cutting
Nonetheless, it has not led to a reduction prices and profit margins, labour
in training activities for employees. In productivity has inevitably been hit. A
2013, training time per employee –a general containment of prices and
more reliable yardstick of training services provided has led to a drop in
intensity– came to 30.2 hours, on a par turnover-per-employee since the beginning
with 2009. These figures show that of the crisis, but the flip side is that sales
Spanish consultancy firms have managed rates and growth in employment in the
Table 7. Indicators relating to HR policies in the Spanish consultancy industry
2011 2012 2013
University graduates in Spanish consultancy firms (percentage) 69.3 71.7 76,1
Overall Spanish workforce with university degree (percentage) (1) 25.5 26.3 26,4
Women in Spanish consultancy firms (percentage) 33.4 34.2 34,4
Expenditure on training by Spanish consultancy firms (million euro) 39 37 36
Expenditure on training per employee by Spanish consultancy firms (euro) 305 274 260
Expenditure on training per employee in Spanish economy (euro) (2) 111 102 —
Training per employee in Spanish consultancy firms (hours per year) 30.5 31.8 30,2
Sources: (1) INE, Encuesta de Población Activa; (2) INE, Encuesta Anual de Costes Laborales; other figures: AEC.
Consultancy in Spain · The Industry in Figures · 2013 13Table 8. Percentage variation in turnover, workforce and productivity (turnover per employee)
in the consultancy industry as compared to 2008 figures
19% 20%
20%
15% 12%
11% 11%
10%
5% 5%
5% 2%
1% 4%
0%
0%
–1% –6%
–5% –7%
–8%
–10%
2009 2010 2011 2012 2013
Turnover
Total workforce of Spanish consultancy firms Productivity (turnover per employee)
Source: AEC.
industry have been maintained. Table 8 Throughout the ten-year period for which
below shows the fall in productivity in figures are available, the trend in relative
terms of turnover per employee: in 2013 distribution of income by type of service has
it dropped to 92% of the 2008 value; in been quite clear, independently of natural
the same year, the total labour force of oscillations due to transitory
Spanish consultancy firms rose by 20% circumstances.
compared to 2008 and turnover was up
by 11%. Of the whole range of services offered by
consultancy firms, the area where demand
Distribution of revenue
by service
Consultancy firms essentially perform
Table 9. Distribution of industry income
three types of service: consultancy,
by type of service (2013)
development and integration and
outsourcing. Last year saw a slight
variation in the relative distribution of 17.4%
income from services: outsourcing 44.3%
services continue to gain ground, now
38.3%
representing 44.3% of total sales. This
increased share has come at the expense
of development and integration, whose
share fell to 38.3%; meanwhile Outsourcing
Development and integration
consultancy remains unchanged at around Consultancy
17.4%.
Source: AEC.
14 Spanish Association of Consulting FirmsTable 10. Distribution of industry income by type of service (2004-2013)
100%
90%
31% 35% 37% 36% 37% 39% 40%
80% 40% 42% 44%
70%
60%
50% 39%
42% 42% 44% 44%
40% 42% 42% 42% 42% 38%
30%
20%
30%
10% 23% 21% 20% 19% 19% 18% 18% 16% 18%
0%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Outsourcing Development and integration Consultancy
Source: AEC.
has increased most is in outsourcing. Its For their part, development and integration
share in the industry’s turnover has services continue to represent a fairly stable
increased steadily from 31% in 2004 to share of the consultancy business. Although
44% in 2013 and it is now the service during much of the period, these were the
that generates most income in the services that generated most income for
industry. companies in the industry, in the last year
Table 11. Average annual growth rate and contribution by top services to industry growth
(2004-2013)
–0.5% Contribution to industry growth (2004-2013)
Consultancy
–0.1% Average growth rate (2004-2013)
37.2%
Development and integration
5.8%
63.3%
Outsourcing
10.4%
–20% 0% 20% 40% 60% 80%
Source: AEC.
Consultancy in Spain · The Industry in Figures · 2013 15they dropped to second place behind Table 13. Distribution of industry
outsourcing. revenue in outsourcing
services (2013)
Finally, the area of consultancy services is
the only one which has systematically lost
18.3%
ground over the last ten years, although the
28.8%
loss was more notable during the early
years of the period. Between 2004 and 52.9%
2007, their share of the industry’s income
dropped by ten percentage points. From
2007, the downward trend levelled off IT outsourcing
somewhat. Application management services
Outsourcing of business processes
Outsourcing contributed most to the Source: AEC.
growth in sales (63.3%) between 2004
and 2013, due to its greater dynamism,
with a 10.4% average annual increase. came from the development of
The remainder of the increase in sales applications. The remaining 21.9% came
(37.2%) was attributable to development from the sale of deployment and
and integration services; however, although integration services.
generating more income at the beginning
of the period, growth here has been
Outsourcing
slower, at 5.8% per year. There are various types of Outsourcing
service. Services are most commonly
Development, deployment and
classified into three categories: outsourcing
integration of applications
of information technology, outsourcing of
Development and integration services can management applications and outsourcing
be divided into two types: development of of core business processes. Of the three,
applications and services associated with outsourcing of applications is the largest
the deployment and integration of these source of income for the industry,
applications. As in previous years, most of accounting for 52.9% of all turnover from
the income in this area in 2013 (78.1%) outsourcing. This is followed by IT
Table 12. Distribution of industry revenue Table 14. Distribution of industry revenue
in development and integration by consultancy service (2013)
services (2013)
21.9% 37,2 %
78.1% 62,8 %
Development of applications Deployment and integration Technological consultancy Business consultancy
Source: AEC. Source: AEC.
16 Spanish Association of Consulting Firmsoutsourcing (28.8%) and business process content or those that involve providing
outsourcing, which represents 18.3% of the services to a fairly broad clientele that
industry’s revenue in the field. demands the highest levels of quality and
security.
Consultancy
The consultancy area encompasses a range Examples include the financial and telecom
of different services, which can be broadly industries and government. Companies and
classed into two different categories: organisations operating in these industries
business consultancy and technological together account for 60% of Spanish
consultancy. The former covers all areas consultancy business and have driven its
related to operations, strategy and growth over the last decade.
organisational management as well as
change management. In 2013, this area Of these three, the financial sector is the
accounted for 37.2% of revenue from most important, single-handedly
consultancy services. The second area, which generating 27% of the industry’s sales
includes all technological consultancy in 2013.
services, accounts for the lion’s share of
consultancy services at 62.8%. In second place comes government and
public authorities, which despite the
austerity measures adopted in Spain and
Distribution of revenue other countries in the region, continue to
by industries call on the experience and the support of
consultancy firms. In 2013, sales to
The portfolio of clients of Spanish consultancy government accounted for 16.7% of the
firms is fairly diverse and includes public and industry’s income.
private organisations, including companies of
all sizes and from all industries. However, Thirdly come sales to telecommunications
certain industries play a greater part in the and media firms, which make up 15.9%
sales of Spanish consultancy firms. These are of income. Between 2004 and 2013,
sectors with a relatively large technology these three sectors together accounted
for between 56% and 65% of the
industry’s sales, and may therefore be
considered to be of strategic importance.
However, sales in the three sectors have
Table 15. Distribution of industry revenue developed unevenly during the period.
by sector (2013)
The relative share of sales to telecom
2.9%
4.1%
3.8% firms dropped during the period of
8.0% 27.0% greatest expansion between 2004 and
8.9% 2009 but has since increased. The trend
12.6% 16.7% in sales to government is perhaps the
15.9%
most interesting, with the share
increasing considerably between 2004
Financial services nergy (oil, coal, mining,
E
and its zenith in 2009. Since then, sales
Government etc.) to Spanish government have fallen in both
Telecom and media Manufacture absolute and relative terms, reflecting
Others Utilities
Transport and travel Distribution new austerity in public accounts. The
Source: AEC.
financial services industry is probably the
Consultancy in Spain · The Industry in Figures · 2013 17Table 16. Comparative weight of the three largest industries by demand for consultancy services
(2004-2013)
70%
60%
15% 15%
15% 15%
50% 15% 17% 16%
18% 16% 17%
40%
20% 20% 27% 25%
19% 17% 17%
17% 17%
30% 16%
20%
24% 24% 26% 27% 27%
23% 25% 25% 26%
10% 22%
0%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Telecom and media Government Financial services
Source: AEC.
most stable source of revenue for greatly. Financial intermediaries have
consultancy firms. Sales to financial clearly emerged as the industry’s best
institutions have always represented a clients, accounting for 27.2% of growth
substantial part of the industry’s income in income between 2008 and 2013.
(around 25%). Telecom and media firms also accounted
for much of the increase (24.4%) in
Altogether, since the outbreak of the sales during this period. Sales to
economic crisis, trends in income and government, on the other hand, fell
the driving effect of each of these during the period, negatively impacting
sectors in the industry have varied growth in the industry.
Table 17. Average annual growth and contribution of most important clients to growth
in the sector (2008-2013)
24.4% ontribution to growth
C
Telecom and media (2008-2013)
3.3%
verage growth rate
A
(2008-2013)
–13.2%
Government
–1.5%
27.2%
Financial services
2.1%
–20% 0% 20% 40%
Source: AEC.
18 Spanish Association of Consulting FirmsTable 18. Forecwast of variation in sales in 2014 in sales to different client industries (percentage)
20%
Variation 2014/2013 (percentage)
14.2%
15%
10%
6.7% 6.1%
5% 3.2%
0.9%
0%
–1.4%
–5% –2.4%
–3.5%
–10% –7.7%
Financial Government Telecom Others Transport Energy (oil, Manufacture Utilities Distribution
services and media and travel coal, mining, (water,
etc.) electricity,
gas, etc.)
Source: AEC.
Elsewhere, sectors such as transport & expected in demand from the
travel and energy, have held their own, telecommunications industry (6.7%). The
although they stand a long way behind the increase in sales to financial institutions is
‘Big Three’, accounting for just 8.9% and 8% forecast to be somewhat lower, at 3.2%,
of sales respectively. but the relative importance of this industry
means that it will continue to make one of
Finally, manufacturing companies, utilities and the most important contributions to an
distribution firms together represent 10.8% increase in consultancy business.
of demand for consultancy services.
By type of service, growth is expected to be
more dynamic in consultancy services, up
Forecasts for 2014: moderate 4.1%, than in development and integration
growth and stability in income and outsourcing (up 3.6% and 2.8%
composition respectively).
Companies in the industry are hopeful that The predicted upturn in income will not
the end of the crisis will also be reflected in substantially alter its internal make-up:
their sales. By next year, industry forecasts outsourcing will continue to be the top-
are predicting moderate growth in sales earning service; by client sector, the
(around 3.3%), encouraged by demand greatest demand will still come from
from government and the two most financial services, telecommunications and
important partners of consultancy firms: government, in that order.
financial institutions and
telecommunications firms. After several
years in which demand from government
has been adversely affected by the austerity
policies of successive governments in Spain
and other countries in the region, the
greatest expansion (14.2%) is anticipated
in this area. Major increases are also
Consultancy in Spain · The Industry in Figures · 2013 19Challenges of innovation
in Spain
Enrique Verdeguer Puig
Director of ESADE Madrid
In a world of uncertainty, information volatility, when comparisons are being drawn between
interdependence of economies and the degree of development of different
digitisation, a number of concepts are nations, innovation is often given as a key
recurrently cited as ways out of the current variable in an economy’s growth capacity.
situation. Chief among these are
internationalisation, entrepreneurship, In this regard, there is a generally-held
leadership and innovation. impression that Spain innovates less than
other countries in the region. From a
However, frequent mention of a concept does macro-economic perspective, the
not signify consensus as to its meaning. A comparative indicator most generally used
clear example is the notion of innovation. is R&D spending as a proportion of GDP.
When we talk about innovation, in general we Data for 2012 show that in Spain, this
are assumed to be referring to a different ratio stands at 1.3%, as compared to
and more efficient way of doing things; in 2.08% for EU-27 and 2.3% for the OECD
other words, innovation is inextricably linked as a whole. The problem is that this
to the concept of change and change disparity has been going on for many years
management. However it is intrinsically a very now, with the result that the technological
broad and somewhat ethereal concept, and gap is widening.
one that can be difficult to delimit and
measure. It is true that these large macro figures
require some qualification. We also need to
It is often argued that in a world as open and look at other variables, such as scientific
competitive as our own, innovation is a production, number of patents and the extent
necessary prerequisite for any firm wishing to to which basic research is translated into
operate on international markets. Similarly, marketable products, services and
20 Spanish Association of Consulting Firmsprocesses, in other words, to what extent it in the area of innovation, especially
can be quantified in factors that contribute to technological innovation.
greater competitiveness.
We need to understand that changing the
Taking scientific production on its own, the innovation system as a whole is neither an
Spanish situation is quite reasonable; the entirely public not an entirely private issue.
country stands in tenth place, and a There is a certain tendency in Spain to
considerable proportion (70%) of this analyse the two domains as if they were
production is performed by universities. worlds apart; in actual fact there are clear
However, this information contrasts with the complementarities and ample room for the
fact that the sum total of patents filed by much-vaunted but less often implemented
Spanish universities is less than that of some public-private collaboration.
leading engineers at MIT.
With this proviso, a second challenge that
Given this diversity of possible sources for needs to be resolved is the fact that many of
examining research and innovation-based our companies lack the size to implement
variables, one can turn to indicators of what innovation policies of any relevance. Spanish
is called “systemic innovation”. In conceptual small and medium enterprises are very
terms, these indicators imply that innovation deficient in technological innovation, especially
is a system that includes all agents involved because of the structure of the
in the knowledge production processes manufacturing industry. Close to 99% of all
needed for industrial and commercial companies in Spain are SMEs. Although this
innovation which lead to economic situation is quite similar to that of other
development. Using this type of indicator, countries in the region, the real difference
Spain stands in a medium-low position within lies in the make-up of those SMEs. In Spain,
the European Union, at levels similar to more than 90% are microenterprises, i.e.,
countries such as Hungary, Italy and companies with fewer than ten workers,
Portugal. nearly 60% are sole traders and the average
number of workers per firm is around five.
Analysing this situation, we first need to
banish the idea that the problem lies solely In addition to this predominance of small
with a lack of public spending. In the US, for companies, barely 5,000 companies have
example, the ten organisations holding the more than 200 employees and medium and
largest number of patents are private large companies represent less than 1% of
companies. Even though universities play a the total. In other words, fewer than one in
very active role in this area, it is the business every hundred Spanish companies employ
sector that leads the process (although it more than 50 workers. Comparing this
must be said that unlike the relative structure with an economy such as
separation between business and academia Germany’s, we can see that the major
found in Spain, in the US the synergies difference lies in the relative lack of medium-
between the two are much greater, and sized enterprises. To a large extent, it is this
much of the research carried out in high percentage of medium-sized enterprises
American universities is in response to and the relative weight of the industrial
demands from companies). sector in the productive structure, together
with a close association between research
The really complex issue is how to move from centres and business demands that lies
a diagnosis to establishing measures that will behind the fact that Germany spends 2.8% of
allow this economy to take a substantial leap GDP on R&D, as compared to 1.3% in Spain.
Consultancy in Spain · The Industry in Figures · 2013 21Innovation is culture from the existence of an institutional-business
network that weds ideas and funding in a
and system, and while relationship of mutual dependency and
public-private collaboration collaboration.
is important in all fields, This collaborative spirit which should
characterise venture capital must also inform
in this area it is essential. relations between research and business.
Long-term cooperation is required between
companies and research centres to meet the
demands of business appropriately. In Spain,
we have spent too long discussing a
disassociation between the two worlds and
the difficulties of consolidating basic research
To sum up, one of the reasons for the lack of
in innovations with a commercial value.
technological innovation in Spanish SMEs is
that they are too small to take advantage of
No one can be in any doubt that innovation
the necessary economies of scale to
today is of key importance for the
capitalise on investment in innovation.
development of countries and organisations.
While budgetary allocations may certainly be
On the other hand, Spain is home to a very
important, growth in innovation is ultimately
significant group of large and highly
more of a cultural –and therefore long-term–
internationalised companies with levels of
issue; it is influenced by quantitative aspects,
productivity and technological and innovation
but also by intangible and educational
capacity comparable to the world’s leading
elements. Innovation is culture and system,
nations. It should be no surprise to find some
and while public-private collaboration is
highly competitive Spanish firms in hi-tech
important in all fields, in this area it is
intensive industries such as transport
essential.
infrastructures; renewable energy sources;
water treatment; air traffic control and
healthcare digitisation, to name but a few.
The competitiveness of this group is reflected
in their capacity to compete internationally in
projects with bilateral and multilateral
funding. This internationalisation of Spain’s
large companies means that, in relative
terms, the country has a larger number of
multinationals than its competitors.
Greater involvement and presence of SMEs in
the Spanish innovation system needs to go
hand in hand with greater development of
financing sources, particularly venture capital
investment. While funding is important for
any business project, it is all the more so
when it comes to developing innovating
projects, such as those associated with
start-ups and spin-offs. Indeed, much of the
success of innovating environments derives
22 Spanish Association of Consulting FirmsAcknowledgements
The AEC would like to thank all the firms who contributed their information and their vision to this
report, namely: Accenture, Altia, Altran, Atos, Axpe, Ayesa, Bilbomática, Bull, Capgemini, Cegos
España, Connectis, Delaware, Deloitte, Efron Consulting, Entelgy, Everis, EY, GFI, GFT, Hewlett-Packard,
Hitachi, Ibermática, IBM, IKEI, Informática El Corte Inglés, S.A. (Iecisa), Indra, INSA, Neoris, Oesía,
Prosap, PwC, RSI, Satec, Sopra Group, Tecnocom, Telvent Global Services, T-Systems, Unisys, Vass
and ACEC.
Consultancy in Spain · The Industry in Figures · 2013 23AEC members
DELOITTE
Plaza Pablo Ruiz Picasso, 1 Neoris
ACCENTURE Torre Picasso María de Portugal, 1, 3-5, Edificio 2
Plaza Pablo Ruiz Picasso, s/n, planta 31 28020 Madrid 28050 Madrid
Torre Picasso Tel.: +34 91 514 50 00 Tel.: +34 902 538 010
28020 Madrid Fax: +34 91 514 51 80 Fax: +34 902 538 020
Tel.: +34 91 596 60 00 www.deloitte.com www.neoris.com
Fax: +34 91 596 66 95
www.accenture.es
EVERIS OESÍA
ALTRAN Avda. de Manoteras, 52 Santa Leonor, 65, Edificios A y B
Parque Empresarial Las Mercedes 28050 Madrid 28037 Madrid
Campezo, 1, Edificio 1 Tel.: +34 91 749 00 00 Tel.: +34 91 309 86 00
28022 Madrid Fax: +34 91 749 00 01 Fax: +34 91 375 82 16
Tel.: +34 91 550 41 00 www.everis.es www.oesia.com
www.altran.es
ATOS EY
Albarracín, 25 Plaza Pablo Ruiz Picasso, 1
28037 Madrid Torre Picasso PwC
Tel.: +34 91 214 88 00 28020 Madrid Paseo de la Castellana, 259 B
Fax: +34 91 754 32 52 Tel.: +34 91 572 72 00
28046 Madrid
www.es.atos.net Fax: +34 91 572 75 25
Tel.: +34 902 021 111
www.ey.com/es
Fax: +34 91 568 54 00
www.pwc.es
ayesa
Estadio Olímpico de Sevilla. Torre NO.
Puerta P. Parque Tecnológico de la Isla GFI
de la Cartuja Serrano Galvache, 56 SOPRA GROUP
41092 Sevilla Edificio Encina, planta 7 Avda. de Manoteras, 48
Tel.: +34 95 504 36 00 28033 Madrid 28050 Madrid
Fax.: +34 95 504 36 01 Tel.: +34 91 383 63 20 Tel.: +34 91 112 80 00
www.ayesa.com Fax: +34 91 383 28 65 Fax: +34 91 112 84 81
www.gfi.es www.sopragroup.es
BILBOMÁTICA
O’Donnell, 34, 4.o izquierda
28009 Madrid TECNOCOM
Hewlett-Packard company Josefa Valcárcel, 26
Tel.: +34 91 578 27 90 Vicente Aleixandre, 1
Fax.: +34 91 576 92 00 28027 Madrid
28232 Las Rozas (Madrid)
www.bilbomatica.es Tel.: +34 901 900 900
Tel.: 91 602 16 93
Fax: 91 602 16 62 Fax: +34 91 436 81 51
www.hp.es www.tecnocom.es
CAPGEMINI
Anabel Segura, 14, Edificio Cedro International Business Machines, S.A. Telvent Global Services
28108 Alcobendas – Madrid Santa Hortensia, 26-28 Valgrande, 6
Tel.: +34 91 657 70 00 28002 Madrid 28108 Alcobendas – Madrid
Fax: +34 91 661 20 19 Tel.: +34 91 397 66 11 Tel.: +34 91 323 69 26
www.es.capgemini.com Fax: +34 91 519 39 87 Fax: +34 91 714 70 05
www.ibm.com/es/ http://tvt.schneider-electric.com/ITC
CEGOS españa UNISYS, s.l.u.
Fray Bernardino de Sahagún, 24 Indra
Avenida de Bruselas, 35 Ramírez de Arellano, 29, 5.a planta
28036 Madrid Edificio Merrimack II, 28043 Madrid
Tel.: +34 91 270 50 00 28108 Alcobendas – Madrid
Tel.: +34 91 480 50 00 Tel.: +34 91 353 58 00
Fax: +34 91 270 50 01 Fax: +34 91 519 58 10
www.cegos.es Fax: +34 91 480 50 80
www.indracompany.com www.unisys.es
CONNECTIS ICT SERVICES VASS
Avda. Fuente de la Mora, 3, 5 y 7, INFORMÁTICA EL CORTE INGLÉS, S.A.
Travesía Costa Brava, 4 Doctor Severo Ochoa, 25, Edificio Fiteni V
Edificio A, planta 4 28100 Alcobendas – Madrid
28034 Madrid
28050 Madrid Tel.: +34 91 622 34 04
Tel.: +34 91 387 47 00
Tel.: +34 91 556 92 62 Fax: +34 91 661 68 33
Fax: +34 91 387 47 76
Fax: +34 91 318 56 32 www.vass.es
www.iecisa.com
www.connectis-ict.es
DELAWARE INSA, Ingeniería de Software entidad vinculada: acec (Asociación
Edificio Nuestra Señora del Pilar Avanzado, S.A. Catalana de Empresas Consultoras)
Norias, 92, 1.a planta Avenida de Burgos, 8A, Edificio Bronce Plaça Catalunya, 9
28221 Majadahonda – Madrid 28036 Madrid 08002 Barcelona
Tel.: +34 91 658 72 00 Tel.: +34 91 383 40 60 Tel.: +34 93 492 57 37
Fax: +34 91 653 31 06 Fax: +34 91 383 40 90 Fax: +34 93 492 57 01
www.grupodelaware.com www.insags.com www.asocat.orgSpanish Association
of Consulting Firms
Monte Esquinza, 34, 2.O B, 28010 MADRID • Tel.: +34 91 308 01 61
E-mail: consultoras@consultoras.org
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