By increasing fee income by $10bn (£6.4bn), the world’s top 40 international accountancy networks and associations have demonstrated remarkable resilience over the past 12 months.
The 6% growth between the 2014 and 2015 Accountancy Age International Surveys has come at a time of continuing uncertainty over the global economy; the financial crises of the last decade may be behind us now, but the aftershocks can still be felt.
This year’s survey shows how the top 40 groups have collectively seen fee income rise to $186.7bn from $176.6bn. Within these figures there have been winners and losers, but overall it is a solid performance, confirming the sector’s health.
But the groups have themselves confirmed that there are challenges ahead as they strive to serve clients through their constituent members and offer truly international services and support.
“With austerity measures continuing in many countries for several years to come, businesses may seek alternative providers as a means to obtain a reduction in their overall professional costs,” says Malcolm Larkos, chairman of GMN International, whose overall income dipped 1.7% over the course of the last year.
“In certain countries, the Big Four have had to significantly reduce the fees they charge to keep clients. As a result of this some companies have equally taken the opportunity to move to a Big Four firm when previously this was not economically viable.”
Big Four – Big News
And of course it is impossible to talk about the international networks and associations without reference to the Big Four – Deloitte, EY, KPMG and PwC. Between them, they account for nearly two thirds (64%) of the fee income of the top 40 networks and associations. The grip that they have over the international market, as well as domestic markets, is vice-like and explains why they have been subject to so much scrutiny in recent times.
All four of these giant organisations have displayed similar growth at around the 6% mark during the past 12 months, with Deloitte consolidating its position in the top spot, recording 6.5% growth to reach $34.2bn.
PwC, for so long the largest network, remains in second place for the second consecutive year, with total fees falling just short of $34bn. Third-placed EY scored $27.4bn with KPMG residing in fourth position having booked $24.8bn in total fee income.
But it would appear that these networks are not resting on their laurels. “We have identified some specific areas we refer to as our strategic growth initiatives, where we are aggressively focusing attention and investment to ensure our capabilities are aligned with the needs of our clients,” says John Veihmeyer, KPMG’s global chairman.
Full feature is here
Source: Accountancy Age
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