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Advisory and technology services growing faster than audit

Advisory and technology services

EY has become the second "Big Four" firm to report record levels of global revenues, according to a new report from the company.

Although EY achieved double-digit growth in its deals and technology-focused advisory businesses, this isn't a trend that is unique to the company.

Big four rival PwC has also recently reported an eight per cent rise in global revenues. As with EY, it found that advisory revenues were growing ahead of its assurance division, which rose by six per cent compared to eight per cent for the former.

The reasons behind these substantial increases are varied but highlight the growing importance and relevance of advisory services. It also suggests that technological innovation is having a much bigger impact on finance firms, including the big four.

Although more traditional business practices - like accountancy and audit - are still at the heart of work for the Big Four, it's becoming increasingly difficult for these departments to thrive.

Tougher regulations and a need to be as transparent as possible means that audit and accountancy services have more challenges when it comes to expanding, compared to technology and advisory departments.

Alongside this difficulty for other areas of business, technology is becoming necessary for many finance firms. In its report, EY points to why technology is becoming such an important part of its everyday business.

"Significant investment in our people and new technologies have allowed us to respond to the dynamic environment. There is still more work to do as we focus on helping businesses solve their toughest challenges," Mark Weinberger, EY global chairman and chief executive, said.

Much like this, the economic climate has provided the perfect environment for consultancy and advisory services.
In the wake of the 2008 financial crash, many businesses wanted to identify areas where they could make changes. This has enabled financial companies to get work in risk and regulatory consulting.

It's likely that with the current uncertainty, with the upcoming US elections and Brexit, that more firms will be using the services of advisory and technology consultancy to help steer their company in the right direction.