SUBMITTED TO DR.

ANIL GORAY

SUBMITTED BYBYANSHIKA SRIVASTAVA - 05 HARSIMRAN JEET SINGH BRAR-13 BRARVIVEKANAND SINGH-40 SINGHVAIBHAV MASIH- 38 MASIH-

Road Map
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INTRODUCTION OVERVIEW TYPES AND RANKINGS LIST OF TOP CONSULTANCIES IN INDIA INDIAN CONSULTANCY INDUSTRY. SIZE AND EXPORT PERFORMANCE LATEST TEND AND FUTURE GOVT. INITIATIVES FOREIGN TRADE POLICY (2009-14) CONCLUSION REFRENCES

INTRODUCTION
y India has been globally recognized for its fast paced

development. The service sector has been growing at a fast pace and now contributes around than 59.6% to the GDP.

y 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 annual rate of 30 per cent, progressing rapidly towards becoming a Rs17,000-crore industry by end of 2010..

INTRODUCTION
y According to Assocham (The Associated Chambers of

Commerce and Industry of India) president Swati Piramal, 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.
y She cited the competitive edge of these firms over their

counterparts in the ASEAN countries as the reason for their preferred status

INTRODUCTION
y Indian consulting companies have strong capabilities

in areas like civil engineering, telecom, power, metallurgy, chemical and computer software.

OVERVIEW
What are consultants? Consultants are hired by companies to solve their problems while creating sustainable value
Industries Served (Example companies)
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Specific work done

y Increasing market share y Increasing profitability y Evaluate/introduce new

Automobile & assembly (GM) Chemicals (Dupont) Consumer packaged good (P&G) Electric power & natural gas (DTE) Financial services (Washington Mutual) Marketing & sales Metal & mining (ArcelorMittal) Petroleum (Exxon Mobile) Pharmaceuticals (Pfizer) Social/government (WHO) Telecommunications (AT&T)

products/services
y Marketing/sales y Logistics y Merger/acquisition

Types of consultancies
Currently, there are four main types of consulting firms:
y Large, diversified organizations that offer a range of services,

including information technology consulting, in addition to a strategy consulting practice (e.g. Accenture, ABeam Consulting, Capgemini, Deloitte, IBM). Some very large IT service providers have moved into consultancy as well and are also developing strategy practices (e.g. Wipro, Tata Consultancy Services, Infosys)

y Medium-sized information technology consultancies, that blend

boutique style with some of the same services and technologies bigger players offer their clients.

Types of consultancies
y Management and strategic consulting specialists that offer primarily

Strategy Consulting and Business Intelligence Models to any industries (e.g. Bain & Company, Booz Allen Hamilton, McKinsey & Company, Arthur D. Little and The Boston Consulting Group).

y Boutique firms, often quite small, which have focused areas of consulting

expertise in specific industries, functional areas or technologies. Most of the boutiques were founded by famous business theorists. Small firms with less than 50 employees are often referred to as niche consultancies. If they have a unique concept and market it successfully, they often grow out of this segment very fast or are bought by larger players interested in their knowhow.

y A fifth type that is emerging is the sourcing advisory firm, that advise

buyers on sourcing choices related to insourcing, outsourcing, vendor selection, and contract negotiations. The top 10 sourcing advisors (as ranked by the Black Book of Outsourcing) were TPI, Gartner, Hackett Group, Everest Group, PwC, Avasant, PA Consulting, and EquaTerra

Top Consulting Firms

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Top Tech Consulting Firm

1 McKinsey & Company (8.243 ) 2 Booz Allen Hamilton (7.330 ) 3 Deloitte Consulting LLP (7.153) 5 Accenture (6.830) 6 IBM Global Technology Services (6.715) 7 Cisco Systems, Inc. (6.622) 8 Lockheed Martin Corporation 6.251 9 Oracle Consulting 10 Capgemini 5.821 16 Infosys Consulting Inc. 4.993 20 Tata Consultancy Services 4.564

McKinsey & Company (8.390) The Boston Consulting Group (7.978) Bain & Company (7.874) Booz & Company (6.514) Deloitte Consulting LLP (6.107) Monitor Group (6.071) PricewaterhouseCoopers (5.998) Mercer LLC (5.947) Ernst & Young LLP (5.914) Oliver Wyman (5.860) Accenture (5.711)

Courtesy : www.Vault.com

List Of Top Consultants Of India

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Global hunt. Ambrosia synergizing methods. Careerist management consultant. Reliance quality management. ABC consultant Pvt. Ltd. Amritt Venture. L&T INFOTECH L&T RAMBOLL Mastermind network. Wipro InfoTech ltd. Infosys Technologies Ltd. Tata Consultancy Services Ltd.

Few Facts About Indian Consulting Industry

Largest concentration of consultancy organisations is in the four metropolitan cities:
1.

2. 3. 4.

Delhi (25.7%) has the highest number of consultancy organisation among four metropolitan cities followed by, Mumbai (25.5%), Chennai (12.1%) and Calcutta (9.1%).

Specialities t at attri te t t e strengt f Indian ns ltancy

Well dispersed and wide ranging areas of specialisation to service diverse range of clientele needs. Advanced technical talents/ skills at reasonable cost. Familiarity with local conditions

Competitiveness of Indian Consultancy Exports

y International firms are larger in size and operate across countries

which give them market access to these countries and also the opportunity to tap the market for consulting business. However Indian consulting organizations are growing with great pace to compete with international organizations organizations in liaisoning with clients in these countries with sustained business development resulting better prospecting record with large expenditure on business development when compared to Indian firms who largely depend on proactive business development in these countries at low business development cost.

y Local presence in the countries benefits multinational

Drivers for Consulting Services

y 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. y Domain experts were required who could provide their core skill and competence in designing and building the core industry, dams, roads, buildings etc.

Drivers for Consulting Services

y 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. y 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.

Statistics
Statistic Quantity unit Bil. US$ year 2008 source Reuters Global Consulting Industry Revenues (including HR, IT, 330.0 strategy, operations management & business advisory services) Information Technology Consulting India s outsourcing Industry India s outsourcing Industry 152 40.3 73-75

Bil. US$ Bil. US$ Bil US$

2008 2008 2008

Reuters Nasscom Nasscom

Company TCS Infosys Wipro

employees 1,49,654 1,09,882 1,02,746

nationalities 78 73 30

Revenue Rs. Mlln. 76503 59287 69666

Strengt s and ns lting

eaknesses f Indian

y The major strengths of Indian consulting

organizations include professional competence, low cost structure, diverse capabilities, high adaptability and quick learning capability of Indian consultants

y The major weaknesses of Indian consulting

organizations, which has hindered the export growth of consulting sector in the country, are low quality assurance, low local presence overseas, low equity base, lack of market intelligence, low level of R&D

Latest Trends in Consulting Industry

y Fast Growth The business world is desperate for consulting help. With excess staff being cut down, most organizations lack the technical, strategic and project management skills to handle the benumbing rate of technological and market change. The consulting industry is trying its best to accommodate the demand. Big consulting firms are inhaling new employees, gulping up smaller firms and merging with peers.

Latest Trends in Consulting Industry

y One stop for all your solutions In addition to a boom in the number of consulting firms, the size of individual firms is growing in response to another industry trend: one-stop shopping. Providers that can't compete on size will still try to offer one-stop shopping by outsourcing a chunk of a client's project to another firm while maintaining responsibility for the overall project. Knowledge management tools, best practices databases and the Internet make it possible for consultants to draw upon the knowledge of every consultant in the organization as many as 27,000 people in a firm like PriceWaterHouseCoopers, for example.

Latest Trends in Consulting Industry

y Shortage of people The greatest threat to the growth of consulting firms is their inability to get enough qualified people. Some firms are already devising creative solutions such as launching their own accredited MBA programs geared toward the specific needs of consultants. Smart people are continuing to gravitate toward the consulting profession, especially with its heightened demand and visibility, not to mention inflated salaries.

Latest Trends in Consulting Industry

y In a down economy, highly successful companies will

invest more in customers, not less. Companies will compete for customer share, not market share. Companies will realize customer satisfaction doesn't translate to loyalty and will stitch their customer channels together. y And finally, companies will shift to a long-term focus. Only one thing is for sure the only thing that is constant in the consulting industry like any other industry is change!

The Future of Consulting Is Reflected In Its Past

y 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.

The Future of Consulting Is Reflected In Its Past

y 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.

The Future of Consulting Is Reflected In Its Past

y As inventors and creators of our own markets and

future, management consultants will continue to rely on the delivery of knowledge and general economic conditions. We can benefit from examining our past to understand the types of expertise our clients need from us. This is our source of value, and as history indicates, this changes as our client s needs change.

Government Initiatives
y In the recent period, the trade policy in India reflects

the strategic importance of India s comparative advantage of trade in services. The services sector has been identified as a thrust sector for trade policy. The Foreign Trade Policy, 2004 09 has announced the setting up of Services Export Promotion Council to map opportunities for key services in import markets and to develop strategic market access programme.

Government Initiatives
y Some of the key initiatives of the government in

promoting exports of consultancy services are through Market Development Assistance (MDA), Market Access Initiative (MAI) scheme ,proactive EXIM Policy and EXIM Bank schemes. y Government also provides exemption on service tax for export of consultancy services. However due to lack of clarity in the provisions in the present notification, consultancy export may be affected. y Income tax exemption under section 80 O need to be reinstated to enhance consultancy export.

SCHEMES IN FTP(2009-14)
y SERVED FROM INDIA SCHEME (SFIS)- Objective is

to accelerate growth in export of services so as to create a powerful and unique Served From India s brand, instantly recognized and respected world over. y All Service Providers shall be entitled to Duty Credit Scrip equivalent to 1 0% of free foreign exchange earned during current financial year.

SCHEMES IN FTP(2009-14)
y Duty Credit scrip may be used for import of any capital

goods including spares, office equipment and professional, equipment, office furniture and consumables; that are otherwise freely importable and / or restricted under ITC(HS). Imports shall relate to any service sector business of applicant.

Conclusion
y 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 favourable position should demand for consulting services in these markets increase.

Reference Source
y http://www.timesascent.co.in/index.aspx?page=article&sectid=2&contentid=20080 707200807071229031867dc432a7 y http://www.managementconsultingnews.com/interviews/czerniawska_interview.p hp y http://www.managementconsultingnews.com/interviews/phillips_interview.php y http://www.managementconsultingnews.com/articles/thorp_article.php y http://www.domain-b.com/management/consulting/20071003_assocham.html y Consulting Club s article, IIM Calcutta y www.vault.com

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