Management Consulting Industry: Important Trends and Global Outlook
Management consulting is the process of providing consultation for business and process management to the companies. Business organizations may opt for the services of management consultants for a number of objectives such as following and implementing industry best practices, change management activities, process analysis, strategy development, technology implementation, and operational improvement services. Management consultancies or consultants can be engaged proactively without any strict need. Proactive use of a management consultant’s services can include finding the hidden weak spots and improving productivity. In comparison, the reactive use of a consultant’s services usually includes identifying the pain points and solving problems within the processes.
Management Consulting Industry – Important Trends:
Since the global management consulting industry directly caters to a vast majority of industries from different domains, the industry trends are influenced by the shifts in the other industries.
- Growth Trends: Operational efficiency, regulatory compliances, and technological advancements can be considered the growth drivers for the industry. Enterprises put their best efforts in reducing costs and increasing their operational efficiency. They intend to save costs on the one hand and transfer it to the consumers as a method of maintaining a competitive stand. Both multinational and domestic enterprises are also seeking advice on advanced technology skill sets such as AI, Agile Best Practices, and Analytics. Both the consulting service providers and businesses are becoming more consumer-centric and they are focusing on designing a better user experience, data-analytics, and sharp consumer engagement strategies for an increased demand for transformation consulting.
Similarly, several regulatory compliances and changing economic scenario among developed economies such as the U.S. Reform, EU General Data Protection Regulation (GDPR), and BREXIT have triggered the demand for consulting services across every global industry. Multinational companies seek high-value advice for coping-up with the regulation that will ultimately increase the demand for management consulting services.
- Challenging Trends: The global management consulting industry is also witnessing freelance service providers that are expanding the freelancer segment within the industry. The segment is also expected to affect the demand for traditional consulting services and service providers. In addition, larger enterprises that work on a global level are also establishing in-house consultation departments and groups that usually have former consultants and veteran experts. This is going to become a new trend as the in-house teams solely dedicate their time and efforts for the company issues.
Management Consulting Industry – Global Outlook:
The global management consulting industry is growing at a CAGR of approximately 4-5 percent and it is expected to attain a market value of $285 billion by the end of 2019. Network-based consulting and crowd-sourcing are some new business models in the industry adopted by companies such as Wikistrat, Business Talent Group, and Hourly Nerd. On a global level, North America and Europe can be considered highly mature markets as they contribute three-fourth of the total global revenue. A major reason for that is the high supplier capabilities that can cater to the complex client requirements. On the contrary, the APAC region accounts for a relatively lesser market value due to low market maturity and low service provider capability.
The global management industry is huge and it caters to almost every industry. However, some changes are causing disruptions in the industry that can slightly shift the growth curve in a different direction.