G X Consult shows growth in recession is possible

G X Consult, a programme and project management consultancy focusing on IT and telecoms, grew by 30% last year, an achievement which founder and managing director Erik Vennestrom puts down to the consultancy’s particular value proposition of being able to provide “blue chip” programme management skills, while undercutting the high-end consultancies by 50%. This has opened up accounts in an industry where previously money was freely available and there was little incentive to look beyond the brand names.

“Companies are more cost-conscious in a recession environment—customers are looking for savings, so they are willing to think outside the box,” says Vennestrom. “For example, large companies are used to outsourcing all their low level processes, but are now outsourcing more high-end work, doing it with more complex processes.”

This emphasis on high-end skills and low price is key. G X Consult’s founders came out of internal programme management roles with companies like AT&T and IBM because they perceived a gap in a market that had rapidly gone from a niche service to a “commoditised jungle.”

“It’s important to us that we make a difference, so we’re not about doing tiny projects with a domestic scope but about delivering the largest scale and most complex consultancy projects,” says Vennestrom. “For example, in 2004 we managed Europe’s largest outsourcing project and for the last two years we’ve been working on Europe’s largest transport management project.”

G X Consult is able to work on projects of this scale through its resourcing model, which enables it to draw on the skills of 360,000 people worldwide through a network of business partners in recruitment and sourcing.

“This enables us to bid on contracts that require, say 60 consultants, where we provide the high end consultants, then use the network for the remaining part of the team,” says Vennestrom. For their existing customers this translates into an ability to meet their requirement within 72 hours.

The company’s current growth trajectory dates back to 2004, when the founders realised not only that there was more demand for their services than they could fulfil themselves, but that there was an opportunity to create not just a network but a scalable company that would build up specialist expertise in the complex world of IT and telecoms.

The company has now reached 70 consultants and although its strength is in a core of highly experienced and qualified programme directors, it is now also “growing its own” in the same way as any of its larger rivals with what Vennestrom jokingly calls “an awfully long career path.”

“It’s very structured, involving defined numbers of projects, scale and geographic spread as well as coaching and mentoring from senior professionals,” he says. “This means we can bring in a junior person and give them the coaching and mentoring they need to grow into a senior programme manager and be able to jump on any project around the world.”

G X Consult’s revenues now stand at £10 million but it’s aiming for growth to £30 million. This is, Vennestrom admits, a “big hairy audacious goal.”

“When we speak to the bank we talk about growing revenues to £13m, which would take us past the 100 people mark,” he says.

What gives Vennestrom confidence is that the growth plan is very much centred on the strong networking skills that are already a key asset.

“The pipeline plan is to drive growth by contacting business leads we have in our network,” says Vennestrom. “We’re freeing up resources that are now on projects to move into business development—we’ve moved away from ‘growth by coincidence.’”

The network will also help with the challenge of growing the firm itself to meet a potential explosion in demand. “A positive side-effect of employing mainly former managers and directors is that they tend to know people, and that will influence further recruitment,” says Vennestrom. “But we realise that as we grow we will also need to strengthen our board, so we are very interested in meeting with senior people who have taken firms through periods of high growth.”

Growing the model will also require more specialisation from individuals and the development of new service lines but Vennestrom is keen to keep the firm focused. “Project and programme management is where we came from; we’re not going to become a service organisation or an integrator,” he says. “We also know IT and telecoms, we’re not going to dilute that strength.”

As the economy turns the corner, the hope is that the doors that have opened for G X Consult during hard times will remain open. “We help people cut costs and that’s attractive in a decline,” says Vennestrom. “But we also help clients increase revenues and service quality —and that’s attractive in any climate.”


Related Link
See the latest consulting opportunities at G X Consult.


All views expressed in this article are those of Mick James and do not necessarily reflect the views of Top-Consultant.com and Consultant-News.com.

Contact Mick with your views or suggestions at: mick.james@top-consultant.com.