Saturday, April 20, 2013

Management Consulting Industry - Radical Shift

The Consulting Story in INDIA
This post is going to be one comprehensive update on the current state of affairs of the consulting industry.

The dream of every MBA aspirant would be to wear business formals and rub shoulders with CXOs, draw hefty pay checks, play golf and roam in big cars after graduating. This is the very reason why management consulting jobs are the most sought jobs in all B-schools, as the profiles offer lucrative pay-checks and lustrous work styles.

Consultant Profile

 
I once took a dig at the consultant profiles in one my blog posts, of course on a lighter note. Do read.
 
A survey, conducted by InsideIIM.com, on career choices and preferred companies of MBA aspirants. Consulting was clearly the most sought out one and Mck rules.






Read this Consulting-Primer by Shyam which gives a fair idea about what? why? how? where? of consulting.
 
Last 2 decades witnessed drastic changes in the way businesses are run.
An excerpt from Business Line - 



Last two decades mark a critical turning point — a radical shift even — from Nehruvian socialism to Manmoha- nomics, from mixed economy to market economy, triggering unprecedented changes in nearly every aspect of life

 
With the sea changes in environment, the consulting industry game plan has also changed and is not the same as it was in 90s; the pitch is totally different now.

Market Scenario

• Fastest-growing markets
• Difficult economy
• Tougher clients
• Buying cycles are getting longer
• Competition is tougher
• Project mandates are forcing consultants to raise the game

Smarter clients are now demanding more. Earlier a firm's name would be enough to get projects; now partners are becoming more important in the equation.

Consulting Industry in India - Pyramid

Consultant Industry Pyramid

 
The Top 5 Consulting Firms Profiles
 
Top Consulting Firms in India
 

Client’s Expectations

Gone are the times when the promoters and CEOs wanted reports or ideas or portfolio analysis; Clients increasingly want the consulting firm's skin in the game too.
 
Now they want
  • On-the ground changes;
  • Streamlining distribution,
  • Better go-to-market strategies
  • Operational excellence and
  • Efficient supply chain management.

In fact, pure strategy kind of projects would add up to only 10% to 15% of the high-value consulting market. Clients want consultants to get their hands dirty; not just give them a study.

Changed Game Plan
 
Businesses are not assigning bulk deals anymore; they are matching the areas with respect to expertise of the consultants. Companies are also becoming more aware of the differentiation between firms.
 
For strategy or portfolio kind of work - McKinsey or BCG
PE firms choose Bain for strategic diligence
Supply chain and operational kind of work - AT Kearney
Sales distribution and reorganisation - Big Fours
 
In fact, the Big Four's consulting arms and Accenture have made big inroads in the mid- and low-value part of consulting. Firms are getting more traction despite the on-going economic slowdown. But the nature of growth is changing. Over half of all assignments in the last 4-5 years have come from newer clients like family-owned mid-caps, private equity and private equity-owned companies, infrastructure projects, public sector (excluding banks), and state governments.
 
Clients now don't get taken in by the 'messenger' but go by the message.

Consulting Trend
Payment

The payment is not just linked to deliverables but to the results. They want full paisa vasool for the money spent, at times 15-20 times more returns. There is more contingency and variable pay now
 
Consulting Profile Salaries












"Premium is now on outcomes. Fifteen years ago, the premium was on ideas,"


Typical Consulting Project

Consultant Project

Big Four vs the Top Consultants

Big Four Consultants


Big Four’s offering
 
• Right strategy,
• Right course of action,
• Set up the organisation structure,
• Proper compensation structure
• Set up Information systems,
• Merger & Acquisitions

Also, given the wider range of services that the accounting firms can offer at much more reasonable fees, their value proposition is compelling.

Strategy of Big Fours

-> First, they offer a wider range of services, from IT implementation to shared services to risk management to even forensic services.

-> Second, they work with middle management as most of the work is heavily execution led.

-> Third, they are much more affordable with rates up to 30-50% lower than the big boys of consulting.

Source :

56 comments:

  1. amazing article ...very impressive accumulation of facts and figures and very nice right up on management consulting !!!

    ReplyDelete
  2. Nice Information! I personally really appreciate your article. This is a great website. I will make sure that I stop back again!.Advisory firms in India | Low brokerage

    ReplyDelete
  3. Great Post! We should understand thing properly that Indian brands are seeking to enter international markets at an increasing rate and brand management consultancy India is uniquely positioned to help them grow into global brands.

    ReplyDelete
  4. Mysay
    - I am glad you liked the post

    ReplyDelete
  5. It's an remarkable article in favor of all the web viewers; they will take benefit from it I am sure.Change Management Consulting Experts

    ReplyDelete
  6. Appreciate the fresh layout. I really liked this article. Credit for this impressive article.

    ReplyDelete
  7. Great article - my first visit on your blog, hope to see more upcoming posts ;) See more at:- http://www.doortraining.co.in/solutions/training/sales-solutions

    ReplyDelete
  8. Analysis of a former age ! Specialized consultants, the ones bringing "value", are progressively wining the battle.

    ReplyDelete
  9. Lovely post. I have really enjoyed reading your post. I think it is Great post for who those works related to the Management consulting firm. Similarly, Brand harvest provides brand consultancy services not only in Mumbai but also all over India. On the other hand We are the best brand consultant india.

    ReplyDelete
  10. This comment has been removed by the author.

    ReplyDelete
  11. Fleet Group provides operational and technical consulting services, Management consulting services, maintenance Consulting Services to companies and government entities that own and maintain truck.


    management consultants

    ReplyDelete
  12. One gets more opportunities on knowing the languages being used in current trend.
    Shashaa
    HTML5 Training in Chennai

    ReplyDelete
  13. now get a job difficult,so learn a language get a new high salary job in MNC Company.| https://www.gangboard.com/app-programming-scripting-training/php-training https://www.gangboard.com/cloud-computing-training/vmware-training
    https://www.gangboard.com/business-intelligence-training/msbi-training
    https://www.gangboard.com/app-programming-scripting-training/chef-training
    https://www.gangboard.com/cloud-computing-training/openstack-training

    ReplyDelete
  14. It is really a very nice posting. I am greatly impressed after reading it. Thanks
    Top Management Consulting Firms

    ReplyDelete
  15. I completely agree with you on this. Yes, there is a radical shift. However, there are several management consulting firms in singapore which are still following the tried and tested strategies and the best part is that they are able to achieve incredible results with these strategies.

    ReplyDelete
  16. This comment has been removed by the author.

    ReplyDelete
  17. The information on this blog is very useful and very interesting. If someone needs to know about the just click .
    Consulting Firms in Dubai | Financial Consultants in Dubai

    ReplyDelete
  18. Nice post. Thanks for sharing it. It's a very valuable information for people who need management consult. I have something to share with you a very good management consultant for business and personal.
    Infinum Growth Insight - A Management Consultant Firm

    ReplyDelete
  19. very nice blogs!!! i have to learning for lot of information for this sites...Sharing for wonderful information. Best/Top Business Management Consulting Services in Bangalore | Pharmaceutical Consulting Services in Bangalore

    ReplyDelete
  20. Very good brief and this post helped me alot. Say thank you I searching for your facts. Thanks for sharing with us!
    Selenium training in Chennai

    Selenium training in Bangalore

    ReplyDelete
  21. Das Green Valley Inn bietet den besten Urlaub in Belize und Guatemala. Planen und genießen Sie Ihren Urlaub in Belize mit Peter Wolf Reise-Team mit den besten Angeboten. Urlaub in Belize

    ReplyDelete
  22. The article is so informative. This is more helpful. Thanks for sharing
    software testing training courses
    selenium course

    ReplyDelete
  23. This is a wonderful article, Given so much info in it, These type of articles keeps the users interest in the website, and keep on sharing more ... good luck tandremme

    ReplyDelete
  24. Totally loved your article. Looking forward to see more more from you. Meanwhile feel free to surf through my website while i give your blog a read.

    pug puppies for sale
    pug puppies for sale
    Pug Puppies For sale near me
    Pug puppies Near Me

    ReplyDelete
  25. Dezin Consulting is one of the leading business consulting firms in India, offering invaluable support to startupsBusiness consulting firms in India Their expertise, highlighted in the blog "Why Do Startups Need the Support of Business Consulting Firms in India," explains the crucial role such firms play in guiding and optimizing new ventures

    ReplyDelete

I welcome brickbats as well..so hit me hard with your comments..