Deloitte Services in a Down Economy

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Duration: 3:04
Source: Stanford ECorner
Author: Teresa Briggs, Deloitte Silicon Valley
Copyright: Creative Commons: by-nc-nd
Found: Nov 5, 2009

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So the question is what are we seeing across our different businesses as a result of the economy and are there any bright spots of maybe countercyclical services that are actually up while the economy goes down. Does that capture it? So it’s a really interesting market. A lot of times one of our businesses will be up when another one is down. But right now there's pressure on all of our businesses at the same time. The consulting market is discretionary spend for companies for the most part. And so when everyone decides to tighten their spending they'll start to cut out discretionary projects. And so there's pressure that's put on our consulting practice. Tax got a little gift from the regulators recently. There was a new regulation that came out around what's called transfer pricing which is the amount of dollars that one part of a company charges another part of the company to move goods cross border. That's probably the simplest way to capture it. And these new regs require companies to deal with a lot of stuff and we can help them with that. So that part of the business gets a little boost because the regulators just put in a new regulation. The audit practice: there's a ton of pressure on pricing. There's a lot of capacity in the industry right now because I don't know if you guys know what Sarbanes was but it was a bunch of regulation around auditors and audits and internal controls inside of companies. And so that created a lot of work for auditors and a lot of work for companies. And that's kind of on the downhill slide. So that work is tailing off a little bit, because the regulations have been eased a bit. And so there's a lot of capacity in the industry which creates pricing pressure. So it's just like following the standard economic model. So the bright spots are, unfortunately, reorganization services. So there's a lot of bankruptcies. Fraud investigations are picking up. That's another economic countercyclical service. And an example tha...
Language: English
Category: Business
Tags: Teresa Briggs, Deloitte Silicon Valley
Country: United States


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