FINAL RESEARCH PROJECT ON HR CONSULTANCY, ITS

SCOPE IN INDIA AND SPECIALIZED AREAS

OBJECTIVE OF THE STUDY

To find out need of HR consultancy in an organization in the present scenario. To find benefits of HR consultancies. To determine the Pros & Cons of HR Consultants. Services offered under HR consultancies. The scope and prospects of HR consulting industries in India. To determine the specialized areas or area of Opportunities.

RESEARCH METHODOLOGY
Secondary data Secondary data are the data collected for some purpose other than the research situation; such data are available from the sources such as books, company reports, journals, rating organization, census department etc. The secondary data are readily available and therefore they are less costly and less time consuming. Sources of secondary data are: Data provided by consultancy firms Internet Book and Journals Company reports

WHAT IS A CONSULTANCY?
Consultancy can be defined as : A professional practice that gives expert advice within a particular field, esp. business or the work of giving such advice.

CONSULTANTS
A consultant is a professional who provides professional or expert advice in a particular area such as management, accountancy, the environment, entertainment, technology, law(tax law, in particular), human resources, marketing, food production, immigration, medicine, finance, life management, economics, public affairs, communication, engineering etc.

 Internal Consultant - someone who operates within an organization but is available to be consulted on areas of specialism by other departments or individuals (acting as clients) External Consultant - someone who is employed externally (either by a firm or some other agency) whose expertise is provided on a temporary basis, usually for a fee. As such this type of consultant generally engages with multiple and changing clients.

HISTORY
Management consulting grew with the rise of management as a unique field of study. The first management consulting firm was Arthur D. Little, founded in 1886 by the MIT professor of the same name and was incorporated in 1909. Arthur D. Little later became a general management consultancy, it originally specialized in technical research. Booz Allen Hamilton was founded by Edwin G. Booz, a graduate of the Kellogg School of Management at Northwestern University, in 1914 as a management consultancy and the first to serve both industry and government clients.

 From the 1950s onwards consultancies not only expanded their activities considerably in the United States but also opened offices in Europe and later in Asia and South America. Work carried out at McKinsey, Boston Consulting Group, AT Kearney, Booz Allen Hamilton, and the Harvard Business School during the 1960s and 1970s developed the tools and approaches that would define the new field of strategic management, setting the groundwork for many consulting firms to follow. In 1983, Harvard Business School's influence on the industry continued with the founding of Monitor Group by six professors.

 The industry experienced significant growth in the 1980s and 1990s, gaining considerable importance in relation to national gross domestic product. In 1980 there were only five consulting firms with more than 1,000 consultants worldwide, whereas by the 1990s there were more than thirty firms of this size.

CURRENT STATE OF THE INDUSTRY

Management consulting has grown quickly, with growth rates of the industry exceeding 20% in the 1980s and 1990s. Consulting remains highly cyclical and linked to overall economic conditions. The consulting industry shrank during the 2001-2003 period, but grew steadily until the recent economic downturn in 2009. Since then the market has stabilized. Currently, there are three main types of consulting firms. Large, diversified organizations, Medium-sized management consultancies and Boutique firms which have focused areas of consulting expertise in specific industries, functional areas, technologies, or regions of the world.

NEED OF HR CONSULTANCY IN AN ORGANIZATION IN THE PRESENT SCENARIO

On the basis of literature reviewed it was found that HR department is important. Human resources department is vital to overall productivity and efficiency of the strong workforce in any thriving company. Good human resources can be one of the most valued and respected departments in an organization; their job is people, and people are the companys most important. The major roles of a human resources department in a successful business involves a lot of observation and analysis. Performance management, message creation, job recruitment and promotion decisions take countless hours of observation and data analysis that result in the most beneficial decisions in the end. However, number organization cannot afford to run a full fledged HR department therefore they take help of HR consultancies to facilitate their HR functions.

SERVICES OFFERED UNDER HR CONSULTANCIES

Human resource consulting is an $18.4 billion industry, that has emerged from management consulting, as clients' needs have become more complex and specialized, widening the gap between HR needs and work force capabilities, and thus accentuating the ability of HR management consulting firms to fill this gap. While the multi-faceted nature of business sometimes causes overlap in consulting industries (i.e., with regards to human resources, general management, and information technology), the following are core fields around which most HR consultancies are based are:

 Human Capital, including remuneration (also called total rewards), employee rewards and incentive programs, and talent acquisition and management Health & Benefits; i.e., orchestrating optimal employee health plans with the carriers themselves Mergers & Acquisitions, examining fit across culture, job-type, transaction costs, etc. Communication, including surveying employee attitudes, satisfaction, engagement, and other employee behaviors Retirement Outsourcing

COMPANIES IN THE FIELD

LIST OF TOP CONSULTANTS OF INDIA Global Hunt Ambrosia Synergizing Methods LIST OF SOME INTERNATIONAL CONSULTANCIES McKinsey & Company The Boston Consulting Group, Inc.

New Star Consulting

Careerist Management Consultants Cerebrus Consultants Reliance quality Consultants ABC Consultants Pvt. Ltd. Dev Solutions Catapult Management Resources Pvt. Ltd.

Bain & Company

Booz & Company Deloitte Consulting LLP Monitor Group PricewaterhouseCoopers LLP Mercer LLC Ernst & Young LLP

Master Mind Network

Oliver Wyman

SECTORS CATERED BY SOME COMPANIES

SECTORS
Banking, Financial services & Insurance Education, training and consultancy Energy Healthcare IT & ITeS Manufacturing-Machinery & equipment Manufacturing-NonMachinery Products Media & Entertainment Pharma/Medical Products

COMPANY
Mc Kinsey & Company Pricewaterhouse Cooper Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Ma Foi Randstad Y Y Y Y Y Y Y Y Y

Real estate & construction Trade including consumer, retail & services

Y
Y

Y
Y

Y
Y

SECTORS
Mc Kinsey & Company Aerospace and Defense Automotive & Assembly Chemicals Consumer Packaged Goods Electric Power & Natural Gas/Oil & Gas Private Equity & Principal Investors Public Sector Private Equity & Principal Investors Pulp & Paper/Forest Products Y Y Y Y Y Y Y Y Y

COMPANY
Pricewaterhouse Cooper Y Y Y Y Y Y Y Y N Ma Foi Randstad Y Y Y Y Y Y N Y N

COMPANY

INTERVENTION IN NO. OF SECTORS

Mc Kinsey & Company

20

Pricewaterhouse Cooper

19

Ma Foi Randstad

18

EMPLOYMENT GENERATION IN DIFFERENT SECTORS

Expected generation
Sectors
Banking, Financial services & Insurance Education, training and consultancy Energy

Jan-June (2011)
35500 51800 13300

Healthcare
IT & ITeS Manufacturing-Machinery & equipment Manufacturing-Non-Machinery Products Media & Entertainment Pharma Real estate & construction Trade including consumer, retail & services Transport, storage and communications

125900
100800 32500 93800 65600 26700 85700 20000 33800

Jan-June (2011)
140000

120000

100000

80000

60000

40000

Jan-June

20000

Estimated generation Sectors

Banking, Financial services & Insurance Education, training and consultancy Energy Healthcare IT & ITeS Manufacturing-Machinery & equipment Manufacturing-Non-Machinery Products Media & Entertainment Pharma Real estate & construction Trade including consumer, retail & services Transport, storage and communications

Jan-June
31800 45200 14600 115000 91100 29800 81100 56700 24600 75000 18700 26900

Jan-June
120000

100000

80000

60000

40000 Jan-June

20000

Expected generation Sectors

Banking, Financial services & Insurance Education, training and consultancy Energy Healthcare IT & ITeS

July-Sep
15300 24500 7900 63800 55500

Manufacturing-Machinery & equipment Manufacturing-Non-Machinery Products

Media & Entertainment Pharma Real estate & construction Trade including consumer, retail & services Transport, storage and communications

14500 36100
31300 11300 29600 10800 14200

July-Sep
70000 60000 50000 40000 30000 20000 July-Sep 10000 0

Estimated generation Sectors

Banking, Financial services & Insurance Education, training and consultancy Energy Healthcare IT & ITeS Manufacturing-Machinery & equipment Manufacturing-Non-Machinery Products Media & Entertainment Pharma

July-Sep
14800 21600 7500 60400 46600 13800 36500 30900 12600

Real estate & construction Trade including consumer, retail & services
Transport, storage and communications

30700
9700 12500

July-Sep
70000 60000 50000 40000 30000 20000 July-Sep 10000 0

Expected generation Sectors

Banking, Financial services & Insurance Education, training and consultancy Energy Healthcare IT & ITeS Manufacturing-Machinery & equipment Manufacturing-Non-Machinery Products

Oct-Dec
11900 20700 6600 58700 41600 14000 38300

Media & Entertainment

Pharma Real estate & construction Trade including consumer, retail & services Transport, storage and communications

32800
12800 26200 9900 11300

Oct-Dec
60000

50000

40000

30000

20000 Oct-Dec 10000

Expected-2011 Sectors Jan-June July-Sep Oct-Dec

Banking, Financial services & Insurance Education, training and consultancy Energy Healthcare IT & ITeS Manufacturing-Machinery & equipment Manufacturing-Non-Machinery Products Media & Entertainment Pharma Real estate & construction Trade including consumer, retail & services Transport, storage and communications

35500 51800 13300 125900 100800 32500 93800 65600 26700 85700 20000 33800

15300 24500 7900 63800 55500 14500 36100 31300 11300 29600 10800 14200

11900 20700 6600 58700 41600 14000 38300 32800 12800 26200 9900 11300

140000

120000

100000

80000

60000 JAN-JUNE
40000 JULY-SEP OCT-DEC

20000

Estimated-2011 Sectors
Banking, Financial services & Insurance Education, training and consultancy Energy Healthcare IT & ITeS Manufacturing-Machinery & equipment Manufacturing-Non-Machinery Products Media & Entertainment

Jan-June
31800 45200 14600 115000 91100 29800 81100 56700

July-Sep
14800 21600 7500 60400 46600 13800 36500 30900

Pharma
Real estate & construction Trade including consumer, retail & services Transport, storage and communications

24600
75000 18700 26900

12600
30700 9700 12500

120000

100000

80000

60000

40000

JAN-JUNE JULY-SEP

20000

OBSERVATIONS
On the basis of the data provided and literature review following observations are made: The expected and estimated Employment generation in Healthcare sector is the most, due to new medical colleges such as AIIMS coming up and many other health programmes along with corporates also being the part of this sector. Followed by IT & ITeS, Manufacturing and NonMachinery Products, Real estate and construction and the rest. This employment generation is higher in Q1 as compared to rest. .

 Media and Entertainment has also shown demand due to its growth and upcoming of new technologies like DTH and popularity of FM services. Plans and projects of developing national highways and other infrastructures in India has led to a demand of employment in the field of real estate and construction. Coal, gas based power generation units are facing supply shortages, which can be the reason for stunted growth and demand in energy sector.

Pros
Professionals Current on laws, issues, and spotting potentially good hires Extremely efficient Don't just keep a company productive but make it more productive.

Cons
Outsider Don't agree with the suggestions Pay their fee & time wasted End up with unresolved issues

SECTORS CATERED
Banking, Financial Services & Insurance, Education, Training And Consultancy, Energy, Healthcare, IT & ITes, Manufacturing-machinery & Equipment, Manufacturing-non-machinery Products, Media & Entertainment, Pharma, Real Estate & Construction, Trade Including Consumer, Retail & Services, Transport, Storage And Communications.

TAJ ENTERPRISES
Established in 2004. Taj Enterprises is a placement consultant and recruitment company. Located in Gurgaon, Haryana.

LIST OF CLIENTS.docx

FIELDS VENTURED AND PROVIDED RESOURCES

IT Hardware and Software Automobile /Heavy fabrication Management /Technical FMCG/Food/Pharmacy Garment Export Plastic Industries Banking

INDUSTRIES CATERED
Automobile Industry Production, Quality, Design (R&D), Shift Engineer, Programmer and Managers at all levels, General Manager, Vice President Etc. All Type Diploma/BE Engineer- Mechanical, Civil, Interior, Electrical, Textile, Chemical, Printing Technology, Food Technology, Biomedical etc. Banking and Finance - CA's, Cost Accountant's, MBA's, B.Com, Cashiers, Clerks, Accountant, Managers at all levels Garments/Apparels Merchandiser, Fashion designer, Q.C., Production, HR Manager, fabric Store, Team Leaders etc. Telecom- Electronic Engineer, R&D, Design, Managers, Channel Sales Executive, Team Leaders, Service Engineer, Tele callers at all levels. Office Staff HR/IR, Secretary, (P.S. and C.S.) Receptionist, Office Asst., Accountants, Computer operators, Typist and Managers at all levels Administration / Sales.

Recruitment done in Year 2009

Chart Title

24%

58% 18%

MARKETING HR FINANCE

Recruitment done in 2010

Chart Title

22%

14% 64%

MARKETING HR FINANCE

EXL.xls

OBSERVATION
As per the data provided by the Taj enterprises the recruitments done in the year 2009 were maximum in Marketing Sector. The recruitment percentage for the same increased for the year 2010.

AMTEK-The company served by TAJ Enterprises

Amtek Auto Group, comprised of Amtek Auto, Amtek India and Ahmednagar Forgings, is the integrated component manufacturers in India, with a strong global presence. It has 43 world class manufacturing facilities located in India (39) and Europe (4). With the infrastructure and technology platform developed over 25 years, the Group is well positioned in the Indian Auto and Non-Auto component markets.
Amtek.xlsx

CONCLUSION
While going through the development of this project the points that I have come across through are: The present scenario is depending on consultancies whether internal or external. Big corporate houses whether it be Mahindra and Mahindra, ISRL or any other are hiring consultancies to fulfill their needs. Also these consultancies are catering almost all the available sectors with their services. In India cities like Mumbai, Bangalore, Pune, NCR, Delhi, Chennai, Kolkata, Ahmadabad, Hyderabad etc. have shown demand employment sectors.

 Corporate houses have started realizing that consultancies are actually proving beneficial. Also that they are helping in generating revenues both for themselves and corporate houses as well. The maximum focus is on recruitment, selection and trainings.

LIMITATIONS
The data given by the consultancy is limited so the result may vary according to the sample size. The consultancies were not ready to provide data, out of which only one consultancy agreed to provide data which was limited.