1
Table of Contents
CONSULTANCY MANAGEMENT BUSINESS SCENARIO IN INDIA....................................3
Consultancy as a Profession ............................................................................................................3
How it begin? ..................................................................................................................................3
Consulting broad purposes .............................................................................................................5
Major Players and their Indian Operations .....................................................................................5
McKinsey & Company ...............................................................................................................5
The Boston Consulting Group (BCG) ........................................................................................6
A.T.Kearney ...............................................................................................................................7
BAIN & Company ......................................................................................................................8
Booz & Co. ................................................................................................................................9
Other Players ............................................................................................................................10
Consulting Market in India ...........................................................................................................11
Market Size and Growth rate in India .......................................................................................11
Information Technology (IT) Sector Status ..............................................................................12
Drivers for Consulting Services ...............................................................................................13
Strengths and Weaknesses of Indian Consulting ......................................................................13
Latest Trends in Consulting Industry .......................................................................................14
Consulting Past Reflects its Future ...........................................................................................17
Types of services to be important in the future ........................................................................17
How a consulting firm can differentiate itself in the market in future? ...................................18
Differentiating Factor ...............................................................................................................18
Return on Investment (ROI) on consulting projects .................................................................18
Concern ....................................................................................................................................19
Conclusion ................................................................................................................................19
Reference Sources..........................................................................................................................20
Nature Thoughts & Symmetry

2
Consultancy Management Business Scenario inConsultancy Management Business Scenario in
IndiaIndia
Consultancy as a ProfessionConsultancy as a Profession
As defined by Larry Greiner and Robert Metzer, “Management consulting
is an advisory service contracted for and provided to organizations by
specially trained and qualified persons who assist, in an objective and
independent manner, the client organizations to identify management
problems, analyze such problems, recommend solutions to these problems,
and help, when requested, in the implementation of solutions”.
As a result of their exposure to and relationships with numerous organizations,
consulting firms are also said to be aware of industry "best practices",
although the transferability of such practices from one organization to another
may be limited by the specific nature of situation under consideration.
Management consultants often bring their own proprietary methodologies
or frameworks to guide the identification of problems, and to serve as the
basis for recommendations for more effective or efficient ways of performing
work tasks.
Consultants must have two critical interwoven dimensions - "Human
dimension" and "Technical dimension". The various traits which constitute
above dimensions are as below:
- Passion for acquiring knowledge and technical competence,
- Willingness to change and adapt new ideas,
- Recognize present paradigm and shift to new paradigm,
- Passion for Life & Self,
- Passion for giving more than 100% all the time,
- Highly developed, motivated and Intellect,
- Genuine concern and compassion for others,
- Vision,
- Courage,
- Sincerity,
- Ethics
How it begin?How it begin?
Industrial Revolution and the birth of Management Consulting:
At the latter part of nineteenth century, during Industrial Revolution, when
modern factories started its operation and there were institutional and social
transformations, that was the time when "scientific management movement"
and "management consulting" took birth.
Nature Thoughts & Symmetry

3
Rise of Industrial Engineering and Efficiency Experts:
Frederick Taylor, Frank and Lillian Gilberth, Henry Gantt and Harrington
Emerson simplified various work processes and raised productivity of workers
and plants by using their technical and methodological approaches. They gave
lectures, carried out studies, wrote books and articles, organized practical
demonstrations, and provided advice in every possible way. These efforts gave
rise to consulting from the scientific management movement focused mainly
on factory and shop floor productivity and efficiency, rational work
organization, time and motion study, elimination of waste and reduction of
production costs. This whole area was given the name of Industrial Engineering
and the practitioners were often called “efficiency experts”. Industrial
engineering and efficient expert approach always had it’s own limitations which
led to a broadened interest in other aspects and dimensions of business
organizations, and to the birth of new areas of consulting.
Emergence of consulting firms in the beginning of 20th
century:
One of the first consulting firms under the name of “Business Research
Services” was started by Edwin Booz in 1914 in Chicago. Later on, a number of
consulting firms were established during the 1920s which were able to
diagnose business organizations in their totality, treating manufacturing and
productivity problems in a wider perspective of sales and business-
expansion opportunities. One of the first firm started was by James O.
McKinsey who established his own consulting firm in 1925. He was a
protagonist of the general management and comprehensive diagnostic
approach to a business enterprise which is today recognized as one of
the founders of the consulting profession.
Consulting pre- and post- 2nd
World War:
In late 1920s and 1930s, consulting firms started gaining ground in most of
the Industrial countries like United States, Great Britain, France, Germany etc.
However, its volume and scope remained limited as there were very few firms.
During Second World War, consulting for major governments as well as army
became a major business.
After the end of Second World War, reconstruction as well as rapid expansion of
business including acceleration of technological change started occurring which
led to emergence of new developing economies and growth of various
Multinational companies and industries. This led to opportunities and demand
for management consulting in various fields.
Nature Thoughts & Symmetry

4
When it started in India?
McKinsey was the first strategy company to enter the Indian market in the
early 90′s with their office in Delhi. They were slow to scale up with about 100
odd consultants in the first 10 years, but have now scaled up to 400 – 500
consultants in India. McKinsey’s Knowledge Center India Private Ltd. (McKC) in
Gurgaon is the largest hub of knowledge management professionals within the
firm. Created in 1998, McKC is made up of a practice research group that
supports McKinsey’s global industry and functional practices; an analytics
group that works on site and remotely with the firm’s consulting teams.
Booz Allen Hamilton entered the Indian market in 1997-98 but exited after 2
years when the market was tough to crack. They re-entered the market a
couple of years ago as Booz & Co. , the newly formed strategy and operations
arm that does work outside government projects.
Consulting broad purposesConsulting broad purposes
Broad purposes pursued by clients in using consultants, irrespective of the field
of intervention and the specific intervention method used:
➢ To help client add value and achieve Organizational purposes,
objectives & personal and professional goals;
➢ To help identify, diagnose and solve management and business
problems;
➢ To achieve client their real potential;
➢ To identify and seize new opportunities as consulting firms are regarded
as source of valuable information and ideas that could be turned
into a wide range of initiatives, innovations and improvements
including developing new markets etc;
➢ To enhance learning, not only for the client but also for the consultants;
➢ To implement changes needed to survive and be successful in an
environment where continuous change is the only constant.
Major Players and their Indian OperationsMajor Players and their Indian Operations
McKinsey & CompanyMcKinsey & Company
Quick Facts:
American global management consulting firm
Founded: 1926
Founder: James O. McKinsey, Marvin Bower
MD: Dominic Barton
Revenue: $ 7 billion (2010)
Employees: 17,000 (9,000 consultants)
Organization:
McKinsey operates under a practice of “up or out,” in which consultants
must either advance in their consulting careers within a pre-defined time-
frame, or else be fired.
Nature Thoughts & Symmetry

5
A controversial aspect of McKinsey’s practice is that it is non-exclusive, and
thus a conflict of interest could arise as different teams of consultants might
work for direct competitors in an industry. This works to the company’s
advantage, as it does not require it to rule out working for potential clients;
furthermore, knowing that a competitor has hired McKinsey has historically
been a strong impetus for companies to seek McKinsey’s assistance
themselves. The policy also means McKinsey can keep its list of clients
confidential.
Practice Areas:
It has created practice areas in six functional areas (the business
technology office, corporate finance, marketing and sales, operations,
organisation and strategy) and 18 industry practices, ranging from banking,
high tech, pharmaceutical and private equity to health care, public sector,
retail and telecommunications. While most of the firm’s practice areas have
remained consistent through the years, the business technology practice, or
BTO, established in 1997, is a relative newcomer. The BTO helps clients
align technology to the management of their businesses in the areas of IT
governance, architecture and infrastructure.
India Operations and Major Projects:
In September 2007, the firm was hired by IDBI Bank, one of India’s leading
public-sector banks, to assist in smoothing out legacy issues resulting from
the bank’s 2006 merger with United Western Bank. McKinsey’s work will
involve restructuring the bank’s branches, reengineering processes and
implementing business strategy.
In June 2007 McKinsey consultants teamed with the Confederation of Indian
Industry to present an in-depth report on rural growth to Dr. Manmohan
Singh, India’s prime minister. McKinsey and CII worked together to advise
the Indian government on Bharat Nirman, an ambitious initiative launched
in 2005 to strengthen the country’s rural infrastructure. One objective of the
project (which has been called India’s “New Deal”) is to ensure
electrification of all villages by 2009.
McKinsey’s Knowledge Center India Private Ltd. (McKC) in Gurgaon is the
largest hub of knowledge management professionals within the firm.
Created in 1998, McKC is made up of a practice research group that
supports McKinsey’s global industry and functional practices; an analytics
group that works on site and remotely with the firm’s consulting teams; and
a Knowledge-on-Call group that specializes in meeting business research
needs on short notice. The Gurgaon office is also home to the firm’s IT India
team, which is a major supporter of McKinsey’s global IT group.
The Boston Consulting Group (BCG)The Boston Consulting Group (BCG)
Quick Facts:
American global management consulting firm
Founded: 1963
Key People: Rich Lesser (President & CEO)
Nature Thoughts & Symmetry

6
Revenue: USD 3.7 billion (2012)
Employees: 6,200 (consultants)
History:
The company was founded by Bruce D. Henderson, a Vanderbilt University
and Harvard Business School alumnus. After many years in the purchasing
department of Westinghouse in Pittsburgh (where pricing behavior gave him
the idea of the experience curve), he joined Arthur D. Little in Cambridge,
Massachusetts. He was then recruited by The Boston Company, where he
founded a one-man, one-telephone consulting unit he named Boston
Consulting Group.
Indian Operations and Major Projects:
There are two BCG India offices-in New Delhi and Mumbai-and the firm has
come a long way since the 1990s, when its presence in India consisted of
one consultant working from his hotel room. Over 90 percent of the firm’s
consultants in New Delhi are graduates of Indian business schools, and they
work with clients in the pharmaceutical, IT, telecommunications, financial
services and industrial goods sectors.
Since its debut in 2002, the New Delhi facility has worked with India’s
central bank, the Reserve Bank of India, and has helped build economic
development plans for government agencies.
In August 2007, BCG was hired by the three major Indian insurers-New
India Assurance, Oriental Insurance and United India Insurance-to help
them determine a joint business strategy. That same year, BCG assisted the
Bank of India with its business process reengineering strategy, and Tata
Capital, subsidiary of the giant Tata Group, tapped the firm to develop a
roadmap for its entry into retail banking and other diversified financial
services. BCG Mumbai was established in 1996, after more than a decade of
client assignments in India.
The BCG Strategy Institute, a research team and think tank, was founded in
1998 to supply the firm’s clients with ideas and analyses based on academic
insight and other non business sources. Candidates are not hired directly
into the institute, but BCG consultants can apply there after establishing a
career at the firm. Institute projects focus on some heady stuff-like
metaphorical thinking, poetic thinking, thinking in social modalities and
dialectic thinking.
A.T.KearneyA.T.Kearney
Quick Facts:
American global management consulting firm
Founded: 1926
Key People: Johan Aurik (MD and Chairman)
Revenue: $ 1 billiion (2011)
Stated Mission:
Nature Thoughts & Symmetry

7
The stated mission of A.T. Kearney is to help the world’s leading
corporations gain and sustain competitive advantage, and achieve profound,
tangible results. Its slogan is: Ideas that last. Kearney was ranked in top 10
“best place to work for” in consulting magazines 2008 rankings.
History:
A T Kearney lost its 56-yearlong autonomy in 1995 when it became a
subsidiary loop on EDS’ giant belt. The prominent Texas-rooted IT company
came into A T Kearney ‘s life at a crucial point, and vice versa; both
businesses needed the fusion, whether for securing a brawny empire (EDS)
or gaining access to the world’s foremost movers and shakers (A T
Kearney). But despite how the saying goes, these opposites did not attract
for long. After long years of troubled partnership, both firms decided to part
ways, and finally in January 2006, A T Kearney became a 100 percent
privately owned management consultancy firm.
Practice Areas:
A.T. Kearney’s industry specialties include Automotive, Communications,
Consumer & Retail, Financial Institutions, Government, High Tech &
Electronics, Pharma & Health Care, and Energy & Utilities. Major
competency teams include Supply Chain Management, Growth Strategies,
Mergers, Innovation & Complexity, IT Strategies, and Transformation.
Indian Operations and Major Projects:
The company commenced its operations in India by setting up an office in
Delhi. Second operations center came up in Mumbai in 2004 and since then
is acting as India headquarters.
In India, the company works with clients to overcome problems in areas like
growth, operations excellence, merger integration, supply chain
management and technology strategy. Its clients come from diverse
industrial sectors such as automotive, engineering and discrete
manufacturing, energy, retail, real estate, private equity, IT and financial
services; these clients range from MNCs, private and public sector
companies, government and industry organizations.
BAIN & CompanyBAIN & Company
Quick Facts:
American global management consulting
Founded: 1973
Key People: Orit Gadiesh (Co-founder and Chairman)
Employees: 5,5000
Working Style:
Nature Thoughts & Symmetry

8
Compared to its peers, Bain puts a greater emphasis on small- and midsized
companies, with the rest of its business coming from Fortune 500, private
equity and nonprofit clients. Big names associated with the firm have
included Diamond Empire DeBeers, Starbucks, Kroger, Ford and Continental
Airlines. One typical engagement had the firm advising on the integration of
software companies Symantec and Veritas. Bain occasionally takes equity in
lieu of fees and, in fact, reins in about 10 percent of its revenue from equity
or “success” stakes. For example, the firm took an ownership stake in fruit
processor Del Monte while working to revamp the company’s strategy.
India Operations and Major Projects:
In July 2006, Bain established firmer footing in the country when it opened
an office in New Delhi. The New Delhi office now is comprised of over 90
percent Indian nationals.
This wouldn’t be earth-shattering news for most consulting firms these
days, but it was the cause of much buzz for Bain, which had yet to set up
shop on the subcontinent, aside from a small in-house capability servicing
center, Bain Capability Center, in Gurgaon. Bain has served clients in the
region for over 10 years, historically from its Singapore office.
Among other growth in India, Bain is building its group at the Bain
Capability Center outside of New Delhi. BCC is completely separate from the
firm’s New Delhi office and serves as a remote center to support the firm’s
global consulting business. The BCC provides research and analytic support
to Bain’s global case teams. The center also plays a role in the codification
of knowledge for Bain’s capability and industry practices.
The firm has also been working in India’s private equity market. The “India
Private Equity Outlook” study, released in September 2006, forecasted that
the private equity market in India would grow from $2.2 billion to nearly $7
billion in 2010. According to Bain’s research, a burgeoning consumer class
and increasingly varied skills among workers are the factors driving the
surge in the country’s available capital.
Booz & Co.Booz & Co.
Quick Facts:
American global management consulting firm
Founded: 1914
Founder: Edwin Booz
Key People Cesare Mainardi (CEO), Joe Saddi (Chairman)
Revenue: $ 1.3+ billion (2011)
History:
Nature Thoughts & Symmetry

9
After graduating from Northwestern University in Evanston, Illinois in 1914,
Edwin G. Booz developed the business theory that companies would be
more successful if they could call on someone outside their own
organizations for expert, impartial advice.[7] This theory developed into a
new profession — management consulting — and the firm that would bear
his name. Booz established a small consulting firm in Chicago, and, two
years later, he and two partners formed the Business Research and
Development Company, which conducted studies and performed
investigational work for commercial and trade organizations. This service,
which Booz labeled as the first of its kind in the Midwest, soon attracted
such clients as Goodyear Tire & Rubber Company, Chicago's Union
Stockyards and Transit Company, and the Canadian & Pacific Railroad.
Indian Operations and Major Projects:
Booz & Company opened offices in Mumbai and New Delhi in 2008. Booz &
Company has provided consulting services for a wide range of Indian
clients, and maintained a base of operations in India in the mid-1990’s as
Booz Allen Hamilton. With the launch of Booz & Company in May 2008, the
firm’s leaders reaffirmed their commitment to India.
Other PlayersOther Players
Consulting industry in India – Pyramid:
Apart from these 5 top players, there are other firms with presence in India
such as Deloitte, Ernst & Young, Accenture, KPMG, PwC, taking advantage
of an economy that continues to esclate despite of global economic
slowdown.
Nature Thoughts & Symmetry

10
Consulting Market in IndiaConsulting Market in India
Market Size and Growth rate in IndiaMarket Size and Growth rate in India
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, a study by ASSOCHAM pegs the consulting
sector in India to grow at an compound annual growth rate (CAGR) of
30%.
In 2008, the consulting industry in India reportedly stands at Rs 13,000
crore. In 2010, it was Rs 17,000 crore industry. As on 2013, it is
estimated to be more than Rs 22,000 crore (USD 3.6 billion)
industry.
Indian consultancy industry has largest concentration in Delhi and Mumbai,
followed by Chennai and Kolkata.
According to ASSOCHAM (The Associated Chambers of Commerce and
Industry of India) former president Venugopal Dhoot, the US, the UK,
Japan, China, Saudi Arabia and Gulf nations acknowledge the competence
of Indian consultancy firms, with demand growing in the EU as well.
Indian consulting companies have strong capabilities in areas like civil
engineering, telecom, power, metallurgy, chemical and computer software.
Nature Thoughts & Symmetry

11
Information Technology (IT) including e-commerce, telecommunications and
so on followed by Corporate Strategy, Outsourcing Services, Human
Resource Management, and Operations Management have been some of the
prominent business divisions in the consulting market. The above graph
(Figure 1) portrays the percentage split of the total APAC revenue across
difference business units.
Information Technology (IT) Sector StatusInformation Technology (IT) Sector Status
One of the fastest-growing segments of consulting has been Information
Technology (IT). The Indian IT industry has played a vital role in putting
India on the global map. It has evolved dramatically over the last decade it
terms of its scale, key service offerings and value provided to its customers.
Having grown at a CAGR of 25 % during FY 2000-13, the sector has become
one of the dominating forces in the global IT - BPM market.
As per NASSCOM (widely acknowledge as the go to Industry body for IT),
the industry touched revenues of US $ 108 million in FY 13 with exports at
US $ 76 billion, accounting for more than 70% of the total revenues.
The Indian IT industry can be segregated into IT Services, Business Process
Management, Engineering and R&D & Software Products and Hardware with
each having the following share in the total industry:
India IT industry growth drivers:
IT Services:
Components: Project based services, IT outsourcing, Support & training
Growth Drivers: Application and services built around social, mobile, cloud &
analytics
Business Process Management:
Components: Customer Care, HR, F&A, Procurement
Growth Driver: Platform solution, bundling BPM with analytics, mobile
engagement of business processes.
ER&D & Software :
Nature Thoughts & Symmetry

12
Components: Application development and engineering/design
Growth Driver: Software as a service, technological advances, low cost
consumer preferences
Hardward:
Components: Personal computers, Servers, Network equipment, Storage
and security, Printers
Growth Driver: New users from rising lower/middle class
Future Opportunities:
➢ Services incorporating Social, Mobility, Analytics and Cloud (SMAC) are
reshaping the traditional way the IT-BPM industry has been providing
services till now.
➢ These individual technologies and platforms which have risen during the
past few years have shown immense potential, but are barely
understood.
➢ While each of these four components have been evolving individually,
companies are beginning to treat them as an integrated whole.
➢ The convergence on these technologies means dismantling the traditional
business design. This provides an opportunity for India IT players to
move into a higher margin business as compared to the typical IT
contracts.
Drivers for Consulting ServicesDrivers 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.
➢ Over the years, as the Indian industry started maturing, the Indian
consulting industry also started expanding, not only in terms of size, but
also in terms of the service offerings.
➢ Over the period, specialist consulting advice was being sought by clients
in India and this opened the opportunity for a number of specialist
organizations to draw on their specialist knowledge base and resources
to meet the demand for specialist consulting services.
Strengths and Weaknesses of Indian ConsultingStrengths and Weaknesses of Indian Consulting
➢ The major strength of Indian consulting organizations include
professional competence, low cost structure, diverse capabilities, high
adaptability and quick learning capability of Indian consultants.
Nature Thoughts & Symmetry

13
➢ Another advantages being familiarity with local conditions, and well
dispersed and wide ranging areas of specialization to service diverse
range of client needs.
➢ The major weakness 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.
Latest Trends in Consulting IndustryLatest Trends in Consulting Industry
Fast Growth:
➢ The business would 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 small firms
and merging with peers.
One stop for all your solutions:
➢ In addition to a boom in the number of consulting firms, the size of
individual firm is growing in response to another industry trend: one-stop
shopping.
➢ Providers that can't compete on size will 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.
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 towards the specific needs
of consultants.
➢ Smart people are continuing to gravitate towards the consulting
profession, especially with its heightened demand and visibility, not to
mention inflated salaries.
Nature of projects – move towards high-end strategy
consulting:
Management consulting in India has traditionally been about capital funding
(predominantly debt) and market sizing. However, the situation is changing
gradually and there is a steady shift towards high-end strategy consulting.
Nature Thoughts & Symmetry

14
This shift is largely being driven by the increase in both global and local
opportunities for Indian companies. This necessitates a need for
prioritization and evaluation of opportunity costs. The increasingly
competitive market in a new “flat” world has also significantly increased the
costs of having a flawed strategy.
However, a potential drawback to this shift towards strategy assignments is
the ground reality with respect to the clients’ lack of ability to implement
the strategies that are recommended by management consultants. Clients
have to balance the need for implementation help with the cost economics
of the support. This is another area where management consulting firms
have begun offering their expertise: by aiding the company in the
implementation process.
Public sector consulting projects:
Indian central and state governments have increasingly found the need to
hire management consultants for projects in fields such as infrastructure
and agriculture. The government has realized the importance of a data and
analytics-driven approach to solving problems and framing policies at the
macroeconomic level. A good example is the Gujarat government’s
awarding of the market demand assessment of the Rs. 78,000 crore Gujarat
International Finance Tec-city (GIFT) to a top-tier management consulting
firm recently. The city is proposed to be a financial center to rival the likes
of New York, London, etc.
Industry structure – move towards greater market
segmentation:
As India takes on a greater role on the world stage, there is a definite
clamor for management consulting services across all industries and
sectors. The country’s economic and regional diversity has created multiple
market segments with different needs and “share of wallets”. As a result,
there are multiple layers in the Indian management consulting industry with
each layer catering to a distinct set of needs.
Nature Thoughts & Symmetry

15
Global management consulting firms have an edge over “low cost”
domestic players – due to their experience and knowledge investments.
Their experienced talent and deep relationships with clients makes them
ideal for high-level strategy projects that require macroeconomic or global
perspectives.
However, a majority of domestic businesses (especially SMEs) cannot afford
their services, leaving ample room for domestic players to bridge the supply
gap, with a much more viable value proposition in terms of service and
fees.
With near saturation and declining profit margins at the bottom of the
management consulting pyramid, Indian IT consulting firms are moving up
the value chain towards high-end technology consulting. However, winning
credibility as a management consulting firm is a huge challenge. Indian IT
firms realize these limitations and as a result, are now spending increasingly
on innovation and R&D.
Niche management consulting firms are specialists that focus on
particular function(s) or set of industries. At smaller management
consulting firms, clients get a senior professional for the full duration of the
project, while a big-brand global firm typically offers blended packages with
senior consultants working part-time on strategy and junior associates
overseeing execution. Rising talent levels, flexible business models and
competitive billing rates have helped these firms to pit themselves against
established players. With their hands-on experience with the smaller
domestic clients, they can spot emerging trends faster – making them best-
positioned for projects that involve both strategizing and long-term
execution.
Operational consulting firms could be both divisions of global firms or
individual firms tackling operational problems. These firms deal with
projects that are more inward-looking for the clients and include cost
structuring, organizational change, supply-chain innovation, etc.
‘Paid’ management consulting services – move towards greater
acceptance :
Business development in Management Consulting is usually a long-drawn
process as selling an intangible product to savvy entrepreneurs is a tough
proposition. Unlike in the developed economic regions, where the client
primarily wants to see a strong methodology before awarding the
assignment, Indian clients expect a glimpse of the final solution prior to
signing any contract.
Cultural perception has also been a hindrance in accepting the concept of
management consulting. In India, knowledge and advice are usually linked
with a person’s age. The very idea of a freshly-minted graduate giving
management advice to people with significantly more work experience is
not readily accepted.
Nature Thoughts & Symmetry

16
Business development timelines have reduced due to increased comfort
levels in the “concept” over time. Although, we still hear anecdotes on how
a CEO had given a dressing down to a newly minted consultant, client
management has realized the unique fresh perspective, energy and
innovative thoughts that younger consultants bring to the table. As the old
guard changes at the top echelons of Indian industry, giving way to a
younger management, this change is reflected in the advisory space too.
The only thing that is constant in the consulting industry - like any other
industry - is change!
Consulting Past Reflects its FutureConsulting Past Reflects its Future
➢ 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.
➢ 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.
➢ As inventors and creators of our own makets 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.
➢ According to a Czerniawska (an author and recognized authority on the
consulting industry), in an interview by Management Consultancy News,
the consultancy industry could begin to look more like the film industry,
with different firms and individuals collaborating on a specific project,
and then going their separate ways, will be because of the client
pressure. Clients want greater specialization and a clearer view of what
consultants do.
Types of services to be important in the futureTypes of services to be important in the future
➢ According to Czerniawska one among many consultancy services is about
change management, organizational change.
➢ Clients are looking for more than just completed consulting
engagements; they are looking for help with organization-wide change.
➢ There are people working on change but for the most part they are niche
consultants, independent consultants, coaches or mentors. It's small
scale and fragmented.
Nature Thoughts & Symmetry

17
How a consulting firm can differentiate itself in the marketHow a consulting firm can differentiate itself in the market
in future?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. No firm has a mandate to protect that reputation because it's a
collective resource. Example: It has been learned from Andersen's part
in Enron that, when on firm is severely damaged, it affects everybody.
One way in which consulting firms can protect themselves from being
damaged by future scandals is through differentiation.
Differentiating FactorDifferentiating Factor
➢ A firm can differentiate itself from others in two ways, one has to do with
the value of consulting input.
➢ So, the firm 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.
Return on Investment (ROI) on consulting projectsReturn on Investment (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.
➢ 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.
➢ These six quantitative and qualitative measures track the chain of impact
for a consulting project and provide a balanced profile of success up to
and including ROI, always trying to isolate the effects of the project.
From the client's perspective, the Scorecard adds up to ultimate
accountability for a project.
Nature Thoughts & Symmetry

18
ConcernConcern
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.
ConclusionConclusion
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.
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).
Globalization and the economic boom have made India a great place for
management consultants to work. Rapid and differing rates of growth
across the country creates multiple possible future scenarios for
macroeconomic analysis – lack of credible data notwithstanding,
management consulting in India requires consultants to bring structure to
such extremely fuzzy situations and make future projections.
Apart from entry strategy for multinational corporations looking to set up
base in India, management consulting firms are also picking up significant
business from Indian corporations that are realigning themselves in an
increasingly decoupled world. Increasing competition after the economic
reforms has forced companies to seek out newer ideas, leading to an
upsurge in the demand for management consulting services. With global
and domestic demand stagnating, this further necessitates the need for
refining strategies for growth.
The management frameworks, analytical approaches, data driven decision
making and strategic mind-set that are typically applied only to large
corporates are valuable to all organizations looking for growth or efficiency
improvements, but need to be tailored appropriately and customized to
individual organizations’ unique capabilities. Presently, India faces a
shortage of firms that cater to the needs of small and medium-sized
corporations.
Nature Thoughts & Symmetry

19
Overall, these are exciting times for Indian management consulting
industry. The future lies adopting the global best practices: embracing
innovation, developing knowledge and nurturing talent. As the industry
transforms itself to deliver greater value to clients, it also needs to invest in
developing the “management consulting mindset” – look at the big picture,
identify crucial insights and excel at client engagement.
Reference SourcesReference Sources
http://www.timesascent.co.in/index.aspx?
page=article&sectid=2&contentid=20080707200807071229031867dc432a7
http://www.managementconsultingnews.com/interviews/czerniawska_intervie
w.php
http://www.managementconsultingnews.com/interviews/phillips_interview.php
http://www.managementconsultingnews.com/articles/thorp_article.php
http://www.domain-b.com/management/consulting/20071003_assocham.html
http://blog.meritusindia.com/2012/07/12/emerging-trends-in-indian-
management-consulting-2/
Nature Thoughts & Symmetry