2. INTRODUCTION
• India has been globally recognized for its fast paced
development. The service sector has been growing at a fast pace
and now contributes more than 50% to the GDP
• Propelled by the increasing demand for consultancy services,
both for domestic and foreign firms, the consulting sector in
India to grow at an annual rate of 30 per cent, progressing rapidly
towards becoming a Rs23,000-crore industry by 2013..
• Presently (2012), the consulting industry in India reportedly
stands at Rs19,000 crore in which Indian consulting companies
have strong capabilities in areas like civil engineering, telecom,
power, metallurgy, chemical and computer software.
3. Few Facts About Indian Consulting
Industry
Largest concentration of consultancy organisations is in
the four metropolitan cities:
1. Delhi (25.7%) has the highest number of consultancy
organisation among four metropolitan cities followed
by,
2. Mumbai (25.5%),
3. Chennai (12.1%) and
4. Kolkata (9.1%).
4. DRIVERS FOR CONSULTING SERVICES
After Independence, the Indian Government had
focused on investment in core industrial sector and
infrastructure. The investment in these sectors
attracted various construction and engineering
companies to explore the business opportunities and
contribute their expertise in these sectors.
Domain experts were required who could provide their
core skill and competence in designing and building
the core industry, dams, roads, buildings etc.
6. Strengths and Weaknesses of
Indian Consulting
The major strengths of Indian consulting
organizations include professional competence, low
cost structure, diverse capabilities, high adaptability
and quick learning capability of Indian consultants
The major weaknesses of Indian consulting
organizations, which has hindered the export growth
of consulting sector in the country, are low quality
assurance, low local presence overseas, low equity
base, lack of market intelligence, low level of R&D
7.
8. Latest Trends in Consulting
Industry
Fast Growth
• The business world is desperate for consulting help.
With excess staff being cut down, most organizations
lack the technical, strategic and project management
skills to handle the benumbing rate of technological and
market change.
• The consulting industry is trying its best to
accommodate the demand. Big consulting firms are
inhaling new employees, gulping up smaller firms and
merging with peers.
9. Latest Trends in Consulting Industry
One stop for all your solutions
• In addition to a boom in the number of consulting
firms, the size of individual firms is growing in response
to another industry trend: one-stop shopping.
• Providers that can't compete on size will still try to offer
one-stop shopping by outsourcing a chunk of a client's
project to another firm while maintaining responsibility
for the overall project.
• Knowledge management tools, best practices databases
and the Internet make it possible for consultants to
draw upon the knowledge of every consultant in the
organization—as many as 27,000 people in a firm like
PriceWaterHouseCoopers, for example.
10. Latest Trends in Consulting
Industry
Shortage of people
• The greatest threat to the growth of consulting firms is
their inability to get enough qualified people.
• Some firms are already devising creative solutions such
as launching their own accredited MBA programs -
geared toward the specific needs of consultants.
• Smart people are continuing to gravitate toward the
consulting profession, especially with its heightened
demand and visibility, not to mention inflated salaries.
11. Latest Trends in Consulting
Industry
In a down economy, highly successful companies will
invest more in customers, not less. Companies will
compete for customer share, not market share.
Companies will realize customer satisfaction doesn't
translate to loyalty and will stitch their customer
channels together.
And finally, companies will shift to a long-term focus.
Only one thing is for sure – the only thing that is
constant in the consulting industry – like any other
industry – is change!
12. The Future of Consulting Is
Reflected In Its Past
Over the decades, the management consulting
industry has responded creatively to the changing
needs of clients, leading to the growth of a thriving
industry. The insights of history provide guidance as
consultants seek the innovations to meet the future
needs of clients.
13. The Future of Consulting Is
Reflected In Its Past
Milan Kubr, an authority on the management
consulting industry, reminds us that “Consultants are
inventors and creators of their own markets and their
future.” In the early years of the industry, consultants
built highly flexible businesses on two market realities:
the rise of management as a science, and evolving
economic conditions.
14. The Future of Consulting Is
Reflected In Its Past
As inventors and creators of our own markets and
future, management consultants will continue to rely
on the delivery of knowledge and general economic
conditions. We can benefit from examining our past to
understand the types of expertise our clients need
from us. This is our source of value, and as history
indicates, this changes as our client’s needs change.
17. CORE SECTORS
Engineering & Manufacturing
Automotive
Oil, Gas and Power
Steel
FMCG
Consumer Durables
IT & ITES
Telecom
Pharmaceutical
Media & Entertainment
Retail
Banking
Insurance
Hotel, Hospital
Education
Real Estate, Infrastructure, Construction
18. HOW A CONSULTING FIRM CAN DIFFERENTIATE
ITSELF IN THE MARKET IN FUTURE?
It's an industry in which differentiation is very
difficult because of its inherent homogeneity.
The reputation commons problem for consulting is
that there is a reputation for the industry in total,
and the survival of all firms depends on it. Is
consulting a good or bad thing in the public's mind?
No firm has a mandate to protect that reputation
because it's a collective resource.
19. DIFFERENTIATING FACTOR
A firm can differentiate itself from others in two ways,
one has to do with the value of consulting input.
So, the firms that differentiate themselves will be the
ones that find a way of articulating and perhaps even
quantifying the value that people talk so much about.
It is a commonly talked about concern among the
clients that what they would really like for the
consulting industry is some kind of rating system to
help them make more informed decisions, to allow
them to compare different consultants in a meaningful
way.
20. ROI On Consulting Projects
According to Dr.Jack Phillips (A recognized expert on
measurement and evaluation, Dr. Jack Phillips is the author
or editor of more than fifty books, including The
Consultant's Scorecard: Tracking Results and Bottom-Line
Impact of Consulting Projects) there is a tremendous
interest in return on investment (ROI) these days and will
surely be in the future.
Many clients want to know the payoff of a consulting
project. The Consultant's Scorecard is a systematic way to
develop a balanced perspective on the success of consulting
projects. Clients can use the Scorecard to see the monetary
payoff of a project and to examine cost versus benefit.
21. ROI On Consulting Projects
The score card captures satisfaction with the
consulting intervention, the learning that has taken
place, and the success of application as the new
process or system is implemented. Then it assess the
business impact of the project and evaluate
intangibles, such as employee and customer
satisfaction. Finally, using the business impact
assessment and the cost of the project, it calculates
the ROI for the project.
22. Concern
There is a concern related to measurement. The clients
are becoming more willing to make the extra
investment in time and money to study the ROI of
projects but the most important issues is that the
evaluation needs to be as objective as possible. Ideally,
neither the people on the consulting team nor on the
client team should facilitate the study. An external
person or group is better for objectivity.
23. Conclusion
The management consulting field is highly developed
in only a few key geographies, including the United
States. Thus, the US-based firms face relatively little
foreign competition. However, with the very fast rates
of economic development in countries such as China
and India, this situation would change over time. The
large firms who have globalized proactively could find
themselves in a favorable position should demand for
consulting services in these markets increase.
24. Conclusion
Firms consider or use a variety of means when
establishing an international presence. All methods
have advantages and disadvantages (for example, the
partner-led model can be time consuming, while the
acquisition or contract models can result in a
heterogeneous firm culture).
