22.09.11

Private Sector Use of Interim Management Nearly Back to Pre-Recession Levels

The private sector’s use of interim managers is nearly back to pre-recession levels, which peaked at a 70 / 30 per cent split in favour of the private sector.

Figures just  by the Interim Management Association (IMA), drawn from its quarterly, independent market audit (IPSOS Mori Q2 2011), reveal that the private/public gap has widened significantly in the last year.  The split between the public and private sectors is now around 61 per cent versus 39 per cent – and growing – a notable shift from early 2009 where the two sectors made equal use of interim resource.

Banking and Finance remains the strongest use of high end interim managers with 40 per cent of private assignments being attributed to this market up from 36 per cent the previous quarter.

Jason Atkinson, Chair of the IMA and Managing Director of Russam GMS, maintains that there are a number of influencing factors to be taken into account - not least, the flexibility in uncertain times that interim managers can afford businesses:

“Clearly, we welcome the buoyancy that we are seeing in the private sector when it comes to deploying interim assignments and believe it is indicative of how companies are using specialist resource to help them drive economic recovery and build a platform for growth. 

“We’re seeing increased business confidence in driving assignments, whether for gap management or transitional change, where bespoke skills are required and can be flexibly deployed alongside existing teams.   

“There have been ramifications for the public sector, which aside from the commonly known issues around spending cuts impacting on resources, there have been changes in framework agreements with interim providers.  Interim providers who did not make the necessary frameworks have seen an impact on the level of assignments.

“In contrast, other IMA members who did make the frameworks are finding public sector assignments to be a source of opportunity and have reported that their public sector business is growing, something that we will be able to evidence by the end of the year.”

  • Share with