The report was prepared by the Association of Management Consultant Serbia (UPKS/AMCS) and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, i.e. the then GTZ-WBF private sector support project. On behalf of GIZ (at that time GTZ) I was, as responsible business services component manager, involved in the concept development and implementation together with the two external consultancies. The report for the first time evaluates in a comprehensive manner the demand and supply side of consultancy services in Serbia by two sets of samples (149 consultancies and 154 companies). The report covers a vast variety of questions, many will cover the issues of your intended market research. Although the report was pubished in spring 2010, it still can be regarded as the best source of up-to-date information and data.

1. Association of Management Consultants of Serbia
Decanska 8, 11000 Belgrade
office@amcserbia.rs
www.upks.org or www.amcserbia.com

2. TABLE OF CONTENTS
FOREWORD BY UPKS 3
PART I: SUPPLY SIDE 4
1.1 METHODOLOGY 4
1.2 KEY FINDINGS 5
1.3 RESEARCH RESULTS 7
1.3.1 PRODUCTS AND SERVICES OFFERED 7
1.3.2 STRUCTURES USED FOR CONSULTANCY INDUSTRY 9
1.3.3 USERS, NON-USERS AND CONSULTANTS 11
1.3.4 MARKET BARRIERS AND OPPORTUNITIES 12
1.3.4.1 PRICING AND VALUE 13
1.3.4.2 BUILDING AND MANAGING A CLIENT BASE 14
1.3.4.3 MARKET FORCES 16
1.3.4.4 FREE TRADE AND EU ACCESSION 18
1.3.5 IMAGE AND UNDERSTANDING 20
PART II: DEMAND SIDE 23
2.1 METHODOLOGY 23
2.2 KEY FINDINGS 24
2.3 RESEARCH RESULTS 26
2.3.1 PRODUCTS AND SERVICES DEMANDED 26
2.3.2 USERS OF SERVICES 27
2.3.3 CHARACTERISTICS OF ENGAGEMENT WITH CONSULTING COMPANIES 27
2.3.4 AWARENESS OF CONSULTING COMPANIES AND INDIVIDUAL CONSULTANTS 29
2.3.5 PERCEPTION OF DEVELOPMENT OF CONSULTING SERVICES MARKET SECTORS 30
2.3.6 IMAGE AND SOURCES OF INFORMATION 31
PART III: FUTURE TRENDS AND NEEDS 33
3.1 THE FUTURE OF DEMAND 33
3.2 THE FUTURE OF SUPPLY 34
3.3 PROJECTIONS FOR THE CONSULTING INDUSTRY 36
ANNEX A: DEFINITIONS OF MARKET SEGMENTS 37

3. FOREWORD BY UPKS
1
http://www.ipsos.com/Country_Profile_Serbia
2
http://cromer-group.com/

4. PART I: SUPPLY SIDE
1.1 Methodology
Sample 1: Providers of Consulting Services
3
Definitions of all investigated market segments are presented in Annex A (page 39)

5. 1.2 Key Findings
General Observations about Consultants

6. Projecting the Direction of the Consulting Industry
Obstacles to Survival and Growth
Client – Consultant Relationships as Obstacles

7. Services Offered: Services Sold
Perception of Development of Serbian Market of Consultancy Services by Users and
Providers
Main Barriers in Communication between Users and Providers of Consultancy Services
1.3 Research Results

8. TOTAL NOT A MEAN
Consulting Specialties MAJOR MINOR
PART PART SCORE

9. Export Promotion Consulting Services
Innovation, partnership and CSR
Sales
Organizational Development, Human
Resources Management and Leadership
Communications, marketing, branding PR,
Market research and analysis
Education, management and other business
Support services
IT
System Management Consulting
Legal and Contractual Services
Auditing, Accounting, Tax Advisory and
Financial Services
0 10 20 30 40 50 60 70
Clients Consultants
Size of the Business or Organization
Number of Employees
Ownership of Business or Organization

10. Independent Consultants
Profile of a Consultant or Consulting Company
Consultancies as SMEs
Consultancies as Early Adaptors
4
Serbian Agency for Small and Medium Enterprises, 2008 Annual Report

11. 1.3.3 Users, Non-users and Consultants
Awareness of Specific Consultants:
94%
Know Don't know
83%
59%
41%
18%
6%
Total User Non user

12. Auditing, Accounting, Tax Advisory and Financial Services 41%
System Management Consulting 17%
Legal and Contractual Services 13%
Communications, marketing, branding, PR, market research and 12%
IT 8%
Organizational Development, Human Resources Management 8%
Education, training and other management and business support 8%
Export Promotion Consultancy Services 5%
Sales 4%
Innovation, partnership and CSR 2%
Other 3%
1.3.4 Market Barriers and Opportunities

13. 1.3.4.1 Pricing and Value
2007. 2008. 2009.
Not engaged consultants 17% 11% 1%
Up to 1000 5% 7% 13%
1001 to 5000 20% 23% 25%
5001 to 10000 9% 7% 11%
10001 to 50000 4% 9% 10%
50001 to 100000 2% 3% 4%
Over 100000 3% 3% 3%
Not known how much is
paid for them
17% 18% 16%
Refusal 24% 21% 17%
Pricing Decisions

14. TOTAL EXTREMELY NOT VERY NOT AT
Potential Factors IMPORTANT (4) (2) ALL (1)
MEAN
1.3.4.2 Building and Managing a Client Base

15. Customer Communications
Responsive to Customer Needs
Client-Consultant Communications

16. 1.3.4.3 Market Forces
Most Significant Obstacles for Businesses in Serbia
Financial Obstacles for Business in Serbia

17. Corruption and Lack of Transparency
Perceptions of Fairness for Different Types of Tenders

18. Perception of Corruption Stifles Competition?
1.3.4.4 Free Trade and EU Accession
Free Trade and EU Ascension: Role of International Community
Potential Markets: IPA

19. Cooperation with EU Clients
Familiarity with CEFTA
Perceived Benefits from CEFTA

20. Problems with Non-Tariff Barriers
Problems with Technical Barriers of Trade
Questions about CEFTA
1.3.5 Image and Understanding
Through a Referral
Prior experience of working together
Personally know client
Consultant sent proposal to client's tender
Consultant contacted client directly
Consultant contacted through an institution
0 10 20 30 40 50 60 70 80 90 100
Clients Consultants

21. Consultants’ Success: Client Satisfaction and Quality Service
Contributing to economic growth of Serbia
Knowing that people who work with me are fulfilled
with their work
Profit
Client's satisfaction
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100
%
Most important Somewhat important Somewhat not important Least important

22. Direct Benefits Resulting from the Engagement of External Consultants
Reduction of deadlines for delivery
Reduction of costs
Increased volume of business
Development of knowledge
Development of business operation
0 10 20 30 40 50 60 70 80
Yes No
Users’ and Non-Users’ Image of Consultants

23. PART II: DEMAND SIDE
2.1 Methodology
Sample 2: Users and Non-Users of Consultancy Services
The field work lasted from January 11 to January 29, 2010.

24. 2.2 Key Findings
Spontaneous Awareness of Consultants
Demand for Consulting Services
Characteristics of Hiring Consultants
Perception of Development of Consultancy Services Market
Use of External Services/ Products (outsourcing) – in General

25. Key drivers for hiring consultants
Future Company Needs
Image Section and Source of Information

26. 2.3 Research Results
2.3.1 Products and Services Demanded
Auditing, Accounting, Tax Advisory and Financial Services 66%
12%
Legal and Contractual Services 56%
21%
System Management Consulting 37%
18%
IT 36%
15%
Education, training and other management and business support 34%
services 12%
Communications, marketing, branding, PR, market research and 26%
analysis 24%
Organizational Development, Human Resources Management and 18%
6%
Users
Leadership
14% Non users
Sales 6%
Innovation, partnership and CSR 10%
12%
Export Promotion Consultancy Services 9%
3%

27. 54%
Auditing, Accounting, Tax Advisory and Financial Services 48%
48.1%
Legal and Contractual Services 38%
32.5%
System Management Consulting 25%
31.2%
IT 24%
Education, training and other management and business support 29.2%
services 21%
Communications, marketing, branding, PR, market research and 25.3%
analysis 12%
Organizational Development, Human Resources Management and 14.9%
11% Demand
Leadership
Sales
12% Engagement
8%
10.4%
Innovation, partnership and CSR 3%
8%
Export Promotion Consultancy Services 5%
2.3.2 Users of Services
2.3.3 Characteristics of Engagement with Consulting Companies

29. 2007. 2008. 2009.
Not engaged consultants 17% 11% 1%
Up to 1000 5% 7% 13%
1001 to 5000 20% 23% 25%
5001 to 10000 9% 7% 11%
10001 to 50000 4% 9% 10%
50001 to 100000 2% 3% 4%
Over 100000 3% 3% 3%
Not known how much is
paid for them
17% 18% 16%
Refusal 24% 21% 17%

30. 94%
Know Don't know
83%
59%
41%
18%
6%
Total User Non user
Auditing, Accounting, Tax Advisory and Financial Services 41%
System Management Consulting 17%
Legal and Contractual Services 13%
Communications, marketing, branding, PR, market research and 12%
IT 8%
Organizational Development, Human Resources Management 8%
Education, training and other management and business support 8%
Export Promotion Consultancy Services 5%
Sales 4%
Innovation, partnership and CSR 2%
Other 3%

31. Auditing, Accounting, Tax Advisory and Financial Services 4.1
3
Legal and Contractual Services 4
2.9
Communications, marketing, branding, PR, market research and 3.9
analysis 3.1
3.9
IT 3
3.5
System Management Consulting 2.9
Education, training and other management and business 3.4
support services 2.7
Sales 3.2
2.4
Organizational Development, Human Resources Management 3.2
and Leadership 2.5
Users
3.1
Export Promotion Consultancy Services 2.3 Non users
2.9
Innovation, partnership and CSR 2.6
49%
35% Positive
User
10%
6% Neutral
Negative
24%
44%
Non user Don`t know, canâ
9% estimate
24%

32. Sources of Information about Consulting Companies / Independent Consultants
65%
Internet
69%
24%
User
18% Recommendation
20%
6% Business and professional magazines
38%
Advertising of consultants
21%
6%
Non user Informing through associations and
12%
organizations
3%
3% Fairs
users and non-users of consulting services.

33. PART III: Future Trends and Needs
3.1 The Future of Demand
8% Smaller need
49%
User
30%
13%
The same
situation
3% Bigger need
47%
Non user
12% Unable to
38% estimate this

34. in 1 year in 3 years in 5 years
Auditing, Accounting, Tax Advisory 45 38 47
and Financial Services 12 6 24
33 28 32
Legal and Contractual Services 18 15 18
16 18 18
IT 3 3 3
10 9 12
Sales 12 6 12
Education, training and other 10 12 18
12 6 12
management and business support
Communications, marketing, 8 13 20
branding, PR, market research and 18 18 15
Non user User
3.2 The Future of Supply

35. Consultants: Optimistic about the Future
Consultants: Where They Would Like to Grow Their Business

36. 3.3 Projections for the Consulting Industry

37. Annex A: Definitions of Market Segments