IT, healthcare tipped to be prime movers in PR growth

The twice-yearly Report - which polls ICCO's 850-strong consultancy membership in 24 countries - also pointed to IT and healthcare as prime movers behind the sector's continuing growth.

With reputation management increasing in prominence on corporate agendas, crisis and public issues have taken on greater significance. According to the report, "A broad reading of commentary suggests that managing clients' reputation, against a background of growing corporate social responsibility, is seen as the defining strategic role for PR practitioners in both public and private sectors."

In addition, the report pointed to India's public relations sector to maintain its strong growth in 2005. Employment at Indian agencies is up, with the public sector seen as a particular engine of expansion. However, the Indian PR market also reports a "dearth of talent in the PR industry". Newer agencies are unable to find suitably qualified recruits, while larger players also find it difficult to hang on to mid-tier talent, with many departing for in-house communications positions.

In terms of specific sectors globally, IT/telecoms/technology garnered 16 mentions as the industry market sector with best growth prospects, compared to just three mentions one year earlier. Public affairs and healthcare received 10 mentions each.

Crisis management was the leading line of business among ICCO organisation members with eight mentions, slightly ahead of marketing and corporate relations, which received seven mentions. Strategic planning earned three mentions worldwide.

Meanwhile, pricing pressure is viewed as the key issue constraining growth. This is closely followed by low economic growth, long decision cycles and low awareness of the benefits of PR.