Five years ago, the Big Five generally downplayed their consulting and advisory practices in operations, strategy and technology. But nothing could be further from the truth today. E&Y has four different service lines with advisory, including procurement consulting, comprising approximately 24% of revenue, based on 2014 numbers. Tax, which is a separate practice, and which does work in tax-optimized supply chains and related areas, is 26% of revenue. Audit still comprises the majority of firm revenue at over 40%.
E&Y, while a bit slower than other firms to scale up its procurement and supply chain practice, has nonetheless added significant fuel to the fire in the past 24-months and is rapidly growing out a differentiated set of practice areas. It has made key senior hires focused on nuanced topics (e.g., labor within the supply chain, risk management, etc.) not to mention brought on talent to support more typical sourcing, transformation and related client programs.
We’ve put E&Y on the Spend Matters 50 Providers to Watch this year. But we highly suspect it won’t be here long, graduating to the “50 Provider to Know” list, as it continues to scale its procurement practice. It is currently working with global customers across a broad range of initiatives, from risk management to procurement transformation to technology strategy. And aside from procurement technology implementations and configurations, which are not a focus, we’d be hard pressed not to add E&Y into the mix for just about any assignment when evaluating strategic and operational advisory firms.