The closure of representative offices of the world’s largest auditing and consulting firms in Russia (Deloitte, Ernst & Young, KPMG, PricewaterhouseCoopers) will not hit the Russian market. On the contrary, it should stimulate the development of Russian consulting companies, prompting them to improve the quality of services and creating small consulting firms that may eventually grow into market leaders.
According to the monitoring by experts from Quattor Advisory, the quality of the services provided by Russian specialists has been on the rise in recent years, including due to the fact that the Big Four, over the years of their operation in Russia, have cultivated an entire generation of professional consultants who will be able to continue developing the consulting market in Russia without foreign companies’ direct involvement.
Moreover, Quattor Advisory have noted that since 2014, Russian private companies and specifically, companies in the construction industry, investment and trade, have been increasingly choosing local auditors and consultants who offer more flexible rates and quality customer service, for the sake of saving resources and in search of more practical solutions.
Considering the higher demand for internal reorganizations and support in separating Russian assets from international groups, any slowdown or suspension of business operations caused by the departure of the above stated companies and changes on the consulting services market are simply unacceptable. This is why businesses are trying to adapt quickly and decide on their preferences when it comes to consulting.
“Russian businesses, even those that are part of an international company, will have to swiftly adapt to the new reality and regroup to withstand the sanctions, the plummeting ruble, restrictions on trans-border deals and transactions, the higher key rate and more. We are ready to extensively work with Russian companies and help them deal with their tasks in the new circumstances,” Quattor Advisory Managing Partner Hayk Martirosyan said.
Due to the developments in Ukraine, the headquarters of the world’s largest auditing companies (Deloitte, EY, KPMG, PwC) announced that all operations in Russia will be ceased. Russian branches are expected to continue as independent companies with no links to the Big Four.