2024: Big 4 Consulting Firms by Revenue

As we navigate through turbulent economic times in 2024, the success and earnings of the Big 4 consulting firms - Deloitte, Ernst & Young (EY), PricewaterhouseCoopers (PwC), and KPMG, remain a focal point for industry analysts and business leaders worldwide. Despite the challenging economic conditions, these firms have managed to maintain their revenue and even achieve significant growth in some areas, demonstrating their resilience and adaptability.

Has their revenue continued to grow? Many of us are curious about how their businesses stack up and whether these institutions remain immune to the current global economic situation. So today, we are unveiling which of the four makes the most revenue coming into 2024.

Let’s dive in! Drum roll please; the highest-earning consulting firm as of 2024 is…

Deloitte

Global Revenue (FY2023): $64.9 billion

Revenue Growth (FY2023): 15%

Total Employees: 457,000

Revenue Breakdown by Service Line:

Audit and Risk Advisory: $20.1 billion
Consulting: $29.6 billion
Tax: $10.3 billion
Financial Advisory: $5.1 billion

Key Developments in 2023:

In 2023, Deloitte’s revenue soared due to several key factors.

Their consulting services, especially in digital transformation, were in high demand.

Additionally, increased needs for cybersecurity and compliance boosted their risk advisory services. Strong growth in the Americas also played a crucial role in their financial success. These elements combined effectively to drive Deloitte once again to be the leading firm of the Big 4.

PwC

Global Revenue (FY2023): $53.1 billion

Revenue Growth (FY2023): 9.9%

Total Employees: 364,000

Revenue Breakdown by Service Line:

Assurance: $18.7 billion
Advisory: $22.6 billion
Tax: $11.7 billion

Key Developments in 2023:

PwC’s revenue growth in 2023 was propelled by strategic partnerships and a focus on innovation. A notable collaboration was with AI startup Harvey, granting PwC exclusive access to an advanced AI platform to enhance their legal business solutions.

Despite facing challenges, such as announcing redundancies of 329 staff and accelerated partner retirements early in the year, PwC managed to sustain growth. Their advisory services remained particularly strong, supported by the new AI capabilities.

These strategic decisions, a testament to their forward-thinking approach, have reinforced PwC’s position as a leader in the professional services industry.

EY

Global Revenue (FY2023): $49.4 billion

Revenue Growth (FY2023): 14.2%

Total Employees: 395,000

Revenue Breakdown by Service Line:

Assurance: $15.1 billion
Tax: $12.1 billion
Advisory: $16.1 billion
Strategy and Transactions: $6.1 billion

Key Developments in 2023:

In 2023, EY significantly invested in its workforce, pouring $45 million into talent development, a more than 30% increase from the previous year, and creating over 300 new jobs.

The firm also bolstered its leadership by appointing 81 new partners, with a record 46 percent being women. These strategic initiatives, coupled with a shift towards higher-margin services like consulting and cybersecurity, significantly contributed to EY’s revenue growth.

We find it interesting that in 2019 EYs published that it’s margin for internal audit work at ANZ was 35 per cent compared to almost 50 per cent for consulting and cyber-security work. This may be informing their investment into further developing their consulting function.

KPMG

Global Revenue (FY2023): $36.4 billion

Revenue Growth (FY2023): 8%

Total Employees: 298,356

Revenue Breakdown by Service Line:

Audit: $12.6 billion
Advisory: $15.9 billion
Tax: $7.9 billion

Key Developments in 2023:

In 2023, KPMG faced significant challenges and changes. The firm laid off about 5% of its U.S. staff in June, reflecting broader restructuring efforts. Additionally, KPMG was fined £21 million for serious breaches in the audit of the collapsed construction company Carillion, highlighting the need for increased rigor and oversight within the firm’s auditing practices. These events marked a pivotal year for KPMG, influencing its strategies and operations moving forward.

2023 in review for the Big 4

Advisory over audit

Combined audit vs advisory chart — Figures are in billions, data from statista.com.

In 2023, Deloitte, PwC, EY, and KPMG generated 66.5 billion in audit and assurance services and a staggering 95.4 billion in revenue from advisory services.

It’s clear that the Big 4 have made a conscious effort to expand their advisory services with more hiring and training in this space. While they will continue to provide audit services, advisory services simply generate more revenue with less potential for high-profile mistakes. This strategic shift could potentially lead to a more stable and profitable future for the Big 4, as they leverage their expertise and client relationships in new and high-demand areas.

Their advisory services cover a wide range of offerings aimed at enhancing performance and managing risks. These include management consulting, risk advisory, technology consulting for IT and digital solutions, financial advisory, mergers and acquisitions, and HR consulting.

Poor PR

2023 was another tough year for the Big 4’s PR department. Each of the firms faced their own unique controversies, which have undoubtedly had an impact on their reputation and public perception. These challenges highlight the need for the firms to maintain high ethical standards and integrity in their operations, and to take proactive measures to address any issues that may arise.

Deloitte was under fire for its audit practices concerning Evergrande, a major Chinese real estate firm that defaulted on its debt. PwC Australia dealt with a scandal involving the unauthorized leak of confidential government tax information. EY was hit with a $100 million fine by the SEC due to its auditors cheating on exams required for CPA licensure. Meanwhile, KPMG was fined a record £21 million for severe breaches in its audit of Carillion, a construction company whose dramatic collapse spotlighted major audit failures.

These incidents reflect ongoing challenges in maintaining ethical standards and integrity within the audit industry. This has been another factor in these firms pivoting to what they perceive to be lower-stakes management consulting services.

It does make you wonder, though, who will monitor the ethical standards and integrity of the Big 4’s advisory services? Perhaps the consulting industry as a whole—only time will tell.

What’s next for the Big 4?

Deloitte, Ernst & Young (EY), PricewaterhouseCoopers (PwC), and KPMG will no doubt make record revenue in 2024. It’s just a question of how much.

Even though the world is experiencing tough economic times, the Big 4 are able to capitalize on this by offering advisory services that aim to transform and reduce businesses’ costs.

It will be up to each firm how they bounce back from their controversies of 2023, and if they will catalyze reforms. My prediction is that they will focus on enhanced compliance measures and increased transparency to help mitigate risks and restore the public’s trust. However, they may also face challenges such as increased regulatory scrutiny and competition from smaller, more agile firms. It will be crucial for the Big 4 to stay ahead of these challenges and continue to innovate and adapt to the changing business landscape.

They will also, without a doubt, continue to deepen their services through technology, particularly by using AI to automate routine tasks. They will also likely, offer more services in sustainability advisory to meet the demand of businesses looking to qualify their sustainability efforts. These innovative steps will pave the way for a promising future for the Big 4.