How consulting is changing in india

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HOW CONSULTING IS CHANGING
IN INDIA

With economy slowing down, nature of the consulting is
also changing. Consulting firms now have to work harder to
keep clients happy.
Challenges faced by Consulting Firms Now :
1. Newer Companies are buying Consulting Services.
 Buying Cycles are getting longer
 Consulting relationships are getting more promiscuous
 Competition is getting tougher
 Clients do not get taken in by the “Messenger” but only go by the
“Message”
2. Mid cap companies are very loyal. They squeeze you but they
represent a good opportunity.
HOW CONSULTING IS CHANGING IN INDIAHOW CONSULTING IS CHANGING IN INDIA

3. Gone are the times when Promoters or CEOs wanted ideas or
reports or analysis. Now they want - on the ground changes,
streamlining distribution, better go-to market strategies,
operational excellence and an efficient supply chain management.
4. Pure strategy kind of projects would add up to only 10 – 15% of
the high value consulting market. Clients want consultants to get
their hands dirty, not just giving them a study.
5. Premium is now on the outcomes – Fifteen years ago , the
premium was on ideas.
6. Clients who have walked with Consultants over the years know how
to extract the best value out of them.

7. Clients are now using consultants for specific reasons. In each case,
they look for specialised knowledge from the Consultant.
8. Clients are very clear nowadays about their expectations & are
looking for clear deliverables from Consultants; Clients know how to
extract the best from the consultants.
9. Consultants cannot quickly execute a project and scoot , companies
now want consultants also to help them embed the capabilities in
their organisations.
10. The 90’s were about ideas and insights.
The last decade was about insights and implementation.
This decade will be about capability building.

11. Typical projects phases that clients are looking for, are as follows :
First 3 months – Diagnostic study
Next 6 months – Implementation assistance
Final place – consultants will get replaced by company talent.
12.Clients feel this approach will ensure Continuity and Enablement….
Smarter clients are now demanding more
13. Earlier Firm’s name would be sufficient to get projects, but
now Sr Members engagement is becoming critical in getting &
managing the projects. Who are the members involved in the
project is becoming a big question now.

14. Apart from Experience, criteria to get the project is – how much
value the Sr Member will be in a position to bring to the table and
what will be his total involvement in the project.
15. Companies are now more aware of the differentiation of the firms.
They are looking at the specialisation of the firms.
16. A wider Bouquet of services, much more grounded approach, and
a price value equation that’s much more in favour of the clients
drives work towards the consulting firms…

17. Clients increasingly want the Consulting firm’s skin in the game
too. Clients , in the past, linked payments to the deliverables.
They make sure that they get 3-4 times value on the amount
they spend.
18. Payments are linked to various contingencies and variable pay
terms now.
19. Clients are clearly saying they look for 15-20 times returns on
what they have spent.

What few consulting firms’ partners have got to say :
Critical to maintain Market Leadership at any stage
Create newer and deeper capabilities
Maintain the track record of creating impact
Hold on to areas of strength
Protect existing client relationships
Build on strong operations
Focus on few sectors where opportunities are more

What few consulting firms’ partners have got to say :
Maintain distinct identity
Keep the momentum up always
Maintain and establish a loyal client roster
Target more mid sized companies
Scale fast, pick battles carefully
Establish differentiated value proposition
Source : Economic Times – April 2, 2013

How consulting is changing in india

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