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Table of ContentsCONSULTANCY MANAGEMENT BUSINESS SCENARIO IN INDIA....................................3

Consultancy as a Profession ............................................................................................................3How it begin? ..................................................................................................................................3Consulting broad purposes .............................................................................................................5Major Players and their Indian Operations .....................................................................................5

McKinsey & Company ...............................................................................................................5The Boston Consulting Group (BCG) ........................................................................................6A.T.Kearney ...............................................................................................................................7BAIN & Company ......................................................................................................................8Booz & Co. ................................................................................................................................9Other Players ............................................................................................................................10

Consulting Market in India ...........................................................................................................11Market Size and Growth rate in India .......................................................................................11Information Technology (IT) Sector Status ..............................................................................12Drivers for Consulting Services ...............................................................................................13Strengths and Weaknesses of Indian Consulting ......................................................................13Latest Trends in Consulting Industry .......................................................................................14Consulting Past Reflects its Future ...........................................................................................17Types of services to be important in the future ........................................................................17How a consulting firm can differentiate itself in the market in future? ...................................18Differentiating Factor ...............................................................................................................18Return on Investment (ROI) on consulting projects .................................................................18Concern ....................................................................................................................................19Conclusion ................................................................................................................................19

Reference Sources..........................................................................................................................20

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Consultancy Management Business Scenario inConsultancy Management Business Scenario in IndiaIndia

Consultancy as a Profession Consultancy 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.

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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.

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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 purposes Consulting 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 Operations Major Players and their Indian Operations

McKinsey & Company McKinsey & 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.

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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)

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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.Kearney A.T.Kearney Quick Facts: American global management consulting firm Founded: 1926 Key People: Johan Aurik (MD and Chairman) Revenue: $ 1 billiion (2011) Stated Mission:

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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 & Company BAIN & Company Quick Facts: American global management consulting Founded: 1973 Key People: Orit Gadiesh (Co-founder and Chairman) Employees: 5,5000 Working Style:

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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:

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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 Players Other 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.

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Consulting Market in India Consulting Market in India

Market Size and Growth rate in India Market 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.

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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 Status Information 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 :

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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 Services 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.

➢ 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 Consulting Strengths 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.

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➢ 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 Industry Latest 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.

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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.

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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.

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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 Future Consulting 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 future Types 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.

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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 Factor Differentiating 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 projects Return 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.

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Concern 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.

Conclusion 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. 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

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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 Sourceshttp://www.timesascent.co.in/index.aspx?page=article&sectid=2&contentid=20080707200807071229031867dc432a7 http://www.managementconsultingnews.com/interviews/czerniawska_interview.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