Interim management contractors contributed over £1.5bn to the UK economy during 2012, an increase of 51% compared to 2006. The number of interims starting on live assignments leapt by 18% between the third and fourth quarters of 2012.
This is according to two reports released by the Interim Management Association (IMA): the IMA Membership Audit Yearly Report 2012 and the IMA Ipsos MORI survey for quarter 4, 2012.
Despite the number of new interim management contractor assignments commissioned by clients decreasing by 4% during 2012, when compared to 2011, the average length of assignments was the highest on record, at 175 days.
“The survey results are very encouraging and indicate that 2013 may well be the year that restores our industry to double-digit growth figures –to the levels before major cuts took place in the public sector,” notes IMA chairman and Russam Interim managing director Jason Atkinson.
The balance between private and public sector interim assignments has shifted significantly. At the end of 2011, 54% of interim assignments were in the private sector versus 46% in the public sector. Historically, there were several periods during 2009 and 2010 when there were more interims on assignment in the public than in the private sector.
However, this trend was sharply reversed during 2012, and by the fourth quarter 72% of interims were on assignment with private sector clients compared to 28% in public sector organisations.
Interim management contractors continue to be in most demand by the banking and finance sector. The IT/telecoms, chemical, pharmaceutical and biotech and business services sectors are the next three largest consumers of interim management contractor services.
Within the public sector, local government is the dominant contractor customer, followed by healthcare, central government and education.
Atkinson concludes: “Increasingly, interim managers are viewed as a cost-effective alternative to hiring management consultants or recruiting additional senior members of staff. They can be parachuted into an organisation for eight to twelve months to deliver results quickly before moving on to their next assignment.”