Jobs Outlook: Management Analysts
Despite projected rapid employment growth, keen competition is expected for jobs as management analysts. Because analysts can come from such diverse educational backgrounds, the pool of applicants from which employers can draw is quite large. Furthermore, the independent and challenging nature of the work, combined with high earnings potential, makes this occupation attractive to many. Job opportunities are expected to be best for those with a graduate degree, industry expertise, and a talent for salesmanship and public relations.
Employment of management analysts is expected to grow faster than the average for all occupations through 2012, as industry and government increasingly rely on outside expertise to improve the performance of their organizations. Job growth is projected in very large consulting firms with international expertise and in smaller consulting firms that specialize in specific areas, such as biotechnology, healthcare, information technology, human resources, engineering, and marketing. Growth in the number of individual practitioners may be hindered, however, by increasing use of consulting teams, which permits examination of a variety of different issues and problems within an organization.
Employment growth of management analysts and consultants has been driven by a number of changes in the business environment that have forced firms to take a closer look at their operations. These changes include developments in information technology and the growth of electronic commerce. Traditional companies hire analysts to help design intranets or company Web sites, or establish online businesses. New Internet start-up companies hire analysts not only to design Web sites, but also to advise them in more traditional business practices, such as pricing strategies, marketing, and inventory and human resource management. In order to offer clients better quality and a wider variety of services, consulting firms are partnering with traditional computer software and technology firms. Also, many computer firms are developing consulting practices of their own in order to take advantage of this expanding market. Although information technology consulting should remain one of the fastest growing consulting areas, the volatility of the computer services industry necessitates that the most successful management analysts have knowledge of traditional business practices in addition to computer applications, systems integration, and Web design and management skills.
The growth of international business also has contributed to an increase in demand for management analysts. As U.S. firms expand their business abroad, many will hire management analysts to help them form the right strategy for entering the market; advise on legal matters pertaining to specific countries; or help with organizational, administrative, and other issues, especially if the U.S. company is involved in a partnership or merger with a local firm. These trends provide management analysts with more opportunities to travel or work abroad, but also require them to have a more comprehensive knowledge of international business and foreign cultures and languages.
Furthermore, as international and domestic markets have become more competitive, firms have needed to use resources more efficiently. Management analysts increasingly are sought to help reduce costs, streamline operations, and develop marketing strategies. As this process continues and businesses downsize, even more opportunities will be created for analysts to perform duties that previously were handled internally. Finally, management analysts also will be in greater demand in the public sector, as Federal, State, and local government agencies seek ways to become more efficient.
Though management consultants are continually expanding their services, employment growth could be hampered by increasing competition for clients from occupations that do not traditionally perform consulting work, such as accountants, financial analysts, lawyers, and computer systems analysts. Furthermore, economic downturns also can have adverse effects on employment for some management consultants. In these times, businesses look to cut costs and consultants can be considered excess expense. On the other hand, some consultants might experience an increase in work during recessions because they advise businesses on how to cut costs and remain profitable.