Revitalization of the consulting market along with a fall in prices. Commentary from Nina Kozlova, General Director of FinExpertiza for RBC+.
26 July 2017
The Russian economy is going through tough times. However, it has been noticed that the market of consulting services is undergoing a revival.
General Director of FinExpertiza
- Tax consulting is still one of the most demanded types of advisory services, and we believe that such demand will grow over time. This trend is related to both tax authorities tightening control over formation of a tax base and payment of taxes to the government, and a growing number of court decisions unfavorable to taxpayers. Due to such a turn of events amid the general economic situation, enterprises and individuals are getting services of tax advisers more and more with a view to reducing tax risks in their operations, thereby preventing negative consequences, including those associated with significant financial losses in the case of sanctions imposed by the government. In addition, the situation is largely influenced by the desire of taxpayers to legally optimize their tax burden for the most effective use of available financial resources.
In recent years, the market of consulting services in Russia has shown demand for IT consulting, including methodological materials for automation of business processes such as accounting, budgeting, transfer pricing, production management, etc. There is a noticeable rate of the growth in demand for outsourcing services and tax consulting, including transfer pricing. This trend allows us to draw a conclusion about priority issues for Russian companies, namely optimization of operational activities and increase of their efficiency due to automation of business processes and transfer of non-core functions to agreed contractors. The trend will remain in the near future.
It has been noticed that the prices in the consulting market are decreasing, especially in the segment of typical services. This is because customers are not ready to pay more for typical services including valuation as well, which encourages price wars involving companies of “Big Four” in the most cases. A full-on price battle often unfolds when it comes to their participation in large projects.