In view of the dynamic and changing financial industries in Ukraine, the question of consulting services and risk auditing is especially acute for all spheres of business. The relevance of many related issues changes very often, in the process of the adoption of new laws, foreign investment and introduction of privatization in different directions of the country’s economy.
Common types of consulting services that are provided in Ukraine
Currently, the variety and quality of consulting services offered by Ukrainian companies are quite wide and include many areas:
Cash flow management and accounting.
The due to transition of a country’s market system to an international one substantial related issues emerge. It relates both to domestic financial policy and to its extrapolation from the laws of other countries with which business is conducted. In order to manage the company’s finances efficiently, a sufficient amount of relevant knowledge is needed for the interaction of the firm with the international market and compliance with all the intricacies of monetary policy and economy.
Up-to-date service for both established and existing companies on the market. It is aimed at review and optimization of business management, increase of efficiency of enterprise functioning, training of managerial positions and working personnel. This service is especially in demand for companies that are seeking to expand or change the scope of their activities, including entering the international market.
Investment Advisory Services.
Since investment is one of the key areas in the conservation and enhancement of resources, it is highly relevant for the domestic economy of most companies. Enterprises seek to invest both earnings and unused assets, which can then bring them profit, as well as expand their reach by investing in them. The more actively and correctly involved a firm’s finances are, the more potential it has in a dynamic financial market.
This is a service on competent distribution of load within the company and transfer of some of its functions to external performance. This may be relevant in some cases, for example, if it is not advisable to regularly maintain some executive departments (accounting, human resources, crisis management), seasonal increase in workload or mainstreaming issues in the company’s business process (transition to a new financial accounting system, subsidiary organization, etc.). The modern market provides very wide opportunities for temporary recruitment of personnel and use of the services of specialized companies.
Necessary for a number of tasks, such as analysis of personnel skills, efficiency of the personnel structure of the company, management of financial statements, including for the passage of tax audits, review of the relevance of documents circulation within the firm, reliability of the documentary base regarding potential bureaucratic costs. Even if there is an appropriate department within the enterprise, the third-party audit service can be a fresh look at current affairs and give its result.
This category includes all issues related to the practical conduct of business in the company. This applies to data repositories, materials used in the enterprise machinery and software. This type of audit makes it possible to significantly increase the efficiency of the company in the future, as well as to protect its data.
Any entrepreneur understands that it is almost impossible to have sufficient knowledge in all of the above areas and to cover related issues. This is exactly why companies providing consulting services in the market of Ukraine are in demand.
Consulting market analysis in Ukraine
The development of the consulting market in our country dates back to 1990. It was during this period that the young government, or rather its private and public businesses, faced new challenges and had to deal with the newly formed issues. Since then, the consulting market has come a long way and today one can see its full integration with internal business management and its readiness to address issues related, inter alia, to international relations.
The structure and ratio of services has also changed and continues to change. At the moment, the conditional market ratio is as follows:
- IT-consulting – 35%;
- Operational consulting – 25%;
- Strategic consulting – 20%;
- HR-consulting – 15%;
- Other – 5%.
As can be seen, most companies turn to consulting agencies for material and technical advice, which is based on internet-technology. Due to the ongoing globalization and the transition of business to the world wide web, the digitalization of enterprises is very active even today.
If we analyze which services are most often used by different branches of enterprises, we can also observe some patterns.
These services are most interested in those companies whose scope of work implies active contact and interaction at the international level. This is the oil industry, the financial sector, including banking, television and radio communications, wholesale trade, energy, machine-building industry, metallurgy.
Food the optimization of technological production most commonly these enterprises seek help: processing, textile, heavy industry, trade, construction, and the financial sector, which require complex internal processes and reliable provision of services to consumers.
In the environment of a dynamic market, strategic planning is in demand in most areas of consumer goods, engineering, and financial services.
Quality personnel and their subsequent effective training are necessary for absolutely everyone without exception, so these services are actively sought by enterprises in various fields of industry and trade, engineering, transport, communications, television and radio communications, IT-sphere, the financial sector, etc.
Other types of advisory services include periodic audits, investments, and administration. Their provision is not as extensive but regular, which is why they occupy a significant share of the market.
As for the ratio of the market share occupied by companies providing this type of service, it is quite difficult to distinguish the ownership of this company by a certain country. More than 70% of consulting companies are Ukrainian, but most of them closely cooperate with foreign organizations. Also, about 10% of the market is occupied by individual referents specializing in a certain direction of consulting.
Problems of development of the market of consulting services in Ukraine
As with any other direction, the market of consulting services in Ukraine has a number of problems related to different features of the state and social system. Among them, the most pronounced are the following:
- A high level of bureaucracy and the difficulty of involving referents in processes, especially in the case of public institutions or enterprises with a governmental share.
- A legislated market entity that runs counter to the capitalist order of the market.
- High levels of monopolization of companies, including state-owned ones, leading to a lack of market development.
- Poor corporate awareness of consulting agencies and low management literacy.
- Lack of a culture of consumption of such services as such in Ukraine.
- The lack of understanding of the clients of the possibilities of referents and the problem with setting their tasks.
It is also worth noting the problem of corruption, because of which many situations, that are solved by consulting agencies, are unleashed in a less moral way. This is a significant drag on the development of the market as a whole because it limits free financial movements between businesses.
The future of consulting companies in Ukraine
Despite all the above, consulting services, though not as fast as they can, continue to develop in our market. Companies are working to offer appropriate service and tailor themselves to the customer as best they can. For example:
- Work under contract, providing services not once, but for a specified time, being a somewhat of a full-time consultant.
- Offer advanced opportunities, including not only consultation, but also active implementation of marketing concepts and modern administration.
- Have a limited staff, resorting to outsourcing in case of personnel deficiency, thus earning on the difference, but risking their reputation.
- Evaluate real estate, businesses, and automobiles.
- Provide agents and intermediaries.
That is why in Ukraine it is quite difficult to find a company that would offer only specialized consulting services. This is often done by agencies with multidisciplinary staff.
However, this often comes in addition to the client, who has quite specific requests that are not limited to consulting services. Often the Ukrainian customer wants to get an analysis of the problem, see the possibilities of its solution, direct assistance in this, as well as the elimination of all the consequences of the problem up to the complex protection of the business, and all from one agency. Therefore, law firms are forced to provide a full range of these services in order to withstand competition in the market.
We recommend ordering consulting services at S&P Agency
S&P Legal Agency has been on the market of Ukraine for more than 15 years and has proven to be a reliable and experienced company, that has a great trust among its clients. The company provides a whole variety of services, including:
- Various juridical services and lawyer services;
- Legal protection in tax disputes and criminal proceedings;
- Risk audit and company’s reputation protection;
- The initiation of judicial disputes and the monitoring of the enforcement of sentences at various levels (pre-trial, judicial or enforcement);
- Crisis communications;
- Training and coaching of personnel, etc.
By contacting S&P Agency you can be sure that you will receive the highest level of service, and in the face of the company, you will find a long-term partner for many years to come.