Consulting Market in Europe vs. USA

I am currently on a business development assignment in Europe, where we are trying to leverage our client relationships in the U.S. into engagements with their European offices. It's been an interesting trip so far. I have met with a global software vendor and a global networking equipment vendor. I thought I would share my observations with you, comparing my experience from Europe so far with the market in the U.S.

The business activity and demand for consulting services seems to be higher in Europe, judging from the number of meetings with high-level executives at large companies that I have set up here with an agenda for concrete potential engagements. I should mention that our firm focuses purely on the technology sector that is someone different from other industries. When I speak with our U.S. clients at their headquarters, there is a degree of paralysis, sort of a waiting posture: "We are waiting for the economy to get better before we start doing anything significant". The emphasis is on cost-cutting. In Europe, on the other hand, people are less pessimistic and much more interested in talking about investments, especially into marketing activities. Europe has been hit equally hard by the downturn, however, the system here (mainly higher regulation and more extensive social programs) make the economic situation seem less dire. Historically, this has been the case. While in the U.S. the market swings from irrational boom to irrational pessimism, Europe is a bit more constant. The highs aren't as high and the lows aren't as low as they are in the U.S. As a result, European business conditions today seem significantly less desolate. The problem in my specific situation, however, is that most European offices of large American corporations in Europe depend, to a large degree, on American funding. Thus, while they are in the mindset to invest in marketing initiatives to improve their business position, they are being somewhat stifled by their U.S. "parents".

This difference between European and American business mentality and their approach to responding to business cycles makes for an interesting conversation. What is a better approach over time? The U.S., slightly bi-polar one, or the more constant, measured one of the Old World? I must say that I am really enjoying being in Europe right now. It feels a lot less desperate here to talk to clients. Perhaps the U.S. business should learn from Europeans and realize that binge-drinking causes a painful hangover.