Group-5

CONSULTING
Members

Rashi Srivastava
Saajal Sharma
Geet Singhal
Agni Shekhar Shukla
Devendra Sharma
Abhinav Anand

INTRODUCTIO
N

Introduction
Consulting is defined as the practice of providing a third party with expertise
on a matter in exchange for a fee.
The service can involve either advisory or implementation services.
For the consultant, taking an independent and unbiased stance on an issue is central to their
role. A consultant can, in principle, service any sector.
Over the past decades, the term has become synonymous with business advisory - which
focuses mostly on
business strategy
management
organization
operational processes
technology

A brief History
Internationalization of Industry in the early 1960s
Large American management consultancies expanded into Europe, bringing their management
models and experience to transform European organizations.
By 1970s, McKinsey & Company had decentralised one quarter of the hundred largest
companies in the United Kingdom.
In the next thirty years, unprecedented growth across Western markets
Revenues of the top 10 worldwide management consultancies grew from $200 million to $50
billion at the beginning of the 21st century,
Headcount of the 30 largest consultancy firms grew from 20,000 in the early 1980s to 430,000 in
2000.
According to Consultancy.uk

Major Events affecting the industry

The Dot Com Crash
The Dot-com crash (2000-2002) where the high-tech / e-business bubble popped
with severe consequences for clients and, therefore, their consultants. This lead
to a plateauing of income for consultancies rather than a decline.

The 2009 Recession

The Credit Crunch (2009-2011) where a collapse of liquidity in the money
markets triggered a sharp drop on the stock markets and a decline in consumer
confidence. The resulting recession witnessed private sector clients cutting back
on discretionary spend which lead to the first decline in global consulting
revenues for decades. The debt burdens of central governments was worsened
by their attempts to improve confidence and ease liquidity by pouring billions
into financial institutions. This debt has meant cut-backs in the use of consultants
by most western governments.
Source: http://www.consulting-ideas.com/learn/the-history-of-consultancy

Consulting Industry in India

The consulting industry in India is growing at a compounded annual growth rate of 30

As per the reports of The Associated Chambers of Commerce and

Industry of India, it is expected to emerge into Rs.
industry by 2020.

27,000 Crores

There are about 6000 consultancy firms in metropolitan cities

including Delhi (25.7%) followed by, Mumbai (25.5%), Chennai (12.1%)
and Kolkata (9.1%).

percent

Others; 28%

Delhi; 26%

Kolkata; 9%

Service sector contributes more than 50 percent to the nations GDP.

There are around 2000 R&D institutions and laboratories supporting

several domestic consultancy organizations directly or indirectly at a reasonable cost.

Mumbai; 26%
Chennai; 12%

Source: http://economictimes.indiatimes.com/corporate-industry/how-consulting-is-changing-in-india/

Different domains in consulting

Strategy
Consulting

Technology
Consulting

Managemen
t Consulting

Consulting
Industry

HR
Consulting

Operations
Consulting

Financial
Advisory

Management Consulting
Management consulting, often referred to as business consulting, is defined as advisory
and/or implementation services to the (senior) management of organizations with the aim
ofimproving the effectiveness of their business strategy, organizational performanceand
operational processes.

Area
s

Strategy
Consulting

Management
Consulting

Operations
Consulting

HR Consulting

Source: http://www.consultancy.uk/consulting-industry/management-cons

Management Consulting-Market
Market worth
greater than
$130 billion in
2016
Growth of more
than 4% per
year
Covers
between 50% 55% of the
total consulting
market
Broadest Area
in Consulting

Source: http://www.consultancy.uk/consulting-industry/management-cons

IT Consulting
ITconsulting, also referred to as technology consulting, relates to services aimed at
helping clients on how they can utilize information technology (IT) and digital to
optimally achieve their business goals. The IT consulting segment spansboth advisory
and implementation services, but excludestransactional IT activities.

Areas
IT Strategy

IT
Architecture

IT
Implementat
ion

ERP services

Systems
Integration

Data
Analytics

IT Security

Software
Management

Source: http://www.consultancy.uk/consulting-industry/it-consu

IT Consulting-Market

Market
worth
greater
than $48
billion in
2016
Representi
ng roughly
20% of the
total
Digitization
, Analytics,
Cloud,
Robotics

Growth of
around
2.5% per
year
Higher
demand
Forecasted
Internet of
Things
(IoT).

Source: http://www.consultancy.uk/consulting-industry/it-consu

Operations Consulting
Operations consulting, also referred to as operations management, is defined as advisory
and/or implementation services that improve an organisation's value chain. Operations
management consulting projects create more effective client operations by advising on
and supporting with the implementation of changes to the organisation,functional
business processes,management systems, culture and other elements part of the value
chain

Areas
Sales &
Marketing

Process
Manageme
nt

Supply
Chain
Manageme
nt

Procureme
nt

Finance

Outsourcin
g

Source: http://www.consultancy.uk/consulting-industry/operations-cons

Operations Consulting-Market
Market
worth $71.2
billion
Largest
segment in
market
Representin
g nearly
30% of the
total
Forecasted
to grow with
>5% per
annum
CAGR for the
period 201115 close to
5.0%

Source: http://www.consultancy.uk/consulting-industry/operations-cons

Human Resource Consulting

Human resource (HR) consulting, also referred to as human capital advisory or
HRM consulting, spansadvisory and implementation activities related to the
management of an organisations human capital and the HR function

Area
s

Human
Capital
Strategy

Compensati
on &
Benefits

Organizatio
nal Change

HR Function

Talent
Manageme
nt

HR
Analytics

Learning &
Developme
nt

HR
Technology

Source: http://www.consultancy.uk/consulting-industry/hr-consult

HR Consulting-Market
Market
worth $31
billion in
2016
Growth
varies
between
3.6% and
4.5%
Representin
g nearly
10% of the
total

Source: http://www.consultancy.uk/consulting-industry/hr-consult

Financial Consulting
The Financial Advisory (or financial consulting) segment delivers consulting
services that build ona strong financial analytical fundament.

Area
s
Transactio
n Services

Corporate
Finance

Crisis &
Recovery

Risk
Manageme
nt

Accountin
g Advisory

Tax
Advisory

Real
Estate
Advisory

Forensics
&
Litigation

Source: http://www.consultancy.uk/consulting-industry/financia

Financial Consulting-Market
Market worth
$70.4 billion
in 2016
Growth varies
between
4.6% and
6.1%
Representing
nearly a
quarter of
industry

Source: http://www.consultancy.uk/consulting-industry/financia

Strategy Consulting
Strategy consulting, often referred to as strategy consultancy, strategic advisory
or boardroom consulting, is regarded by the majority of consultants as the most
'high-end' and prestigious segments within the professional services industry.

Area
s
Corporate
Strategy

Business
Model
Transformati
on

Organisatio
nal Strategy

Economic
Policy

Functional
Strategy

Mergers &
Acquisitions

Digital
Strategy

Source: http://www.consultancy.uk/consulting-

Strategy Consulting-Market
Market
worth $30
billion in
2016
Growth of
4.7% in
2015 and
5.8% in
2016
Representin
g nearly
12% of the
total
Source: http://www.consultancy.uk/consulting-

PEST Analysis

Political
Foreign
Foreign Policy:
Policy: Increase
Increase in
in trade
trade agreements
agreements with
with other
other countries,
countries, Make
Make In
In India
India
Tax
Tax Policies:
Policies: Trade
Trade Regulations,
Regulations, Uncertainty
Uncertainty over
over GST
GST and
and increase
increase in
in Indirect
Indirect taxation
taxation
Strong
Strong and
and Stable
Stable Government:
Government: Winning
Winning with
with 282
282 seats
seats out
out of
of 545
545
Improved
Improved Accountability
Accountability of
of Government:
Government: RTI
RTI media
media and
and Independent
Independent CAG
CAG increasing
increasing transparency
transparency
Terrorism
Terrorism :: Kashmir
Kashmir issue,
issue, Unrest
Unrest in
in Tamil
Tamil Nadu
Nadu and
and Andhra
Andhra Pradesh
Pradesh Impact
Impact negatively.
negatively.
Corruption
Corruption Allegations
Allegations

Economic

Second largest workforce in the world- Largest English speaking population

Less Average age will invite companies for BPO roles increasing opportunities for operation consulting
Developed Equity market: Liberalization and solid regulation by SEBI
Pro-Growth policies of government: Inviting New companies increase Strategic management consulting
roles
Slowing manufacturing due to infrastructure bottlenecks causing growth to falter
Poor infrastructure- Boon to operational consulting as optimization is required
http://web.b.ebscohost.com/ehost/pdfviewer/pdfviewer?vid=7&sid=b7f3a528-21c2-433f-89bd-eead1d15cfdc%40sessionmgr103&hid=102

Social
Rapid
Rapid urbanization
urbanization
Growing
Growing proportion
proportion of
of young
young people
people have
have a
a positive
positive impact
impact
Employment
Employment creation
creation schemes
schemes by
by the
the government
government increases
increases the
the chances
chances for
for consultation.
consultation.
Young
Young country
country in
in terms
terms of
of average
average age
age makes
makes India
India a
a hot
hot spot
spot for
for new
new companies
companies to
to invest
invest
which
which gives
gives a
a strong
strong benefit
benefit for
for the
the consulting
consulting industry
industry
Huge
Huge pool
pool of
of educate
educate people
people with
with English
English speaking
speaking abilities
abilities helps
helps to
to attract
attract BPOs
BPOs which
which
helps
helps the
the operational
operational consulting
consulting business
business

Technological

Strong
Strong knowledge
knowledge base
base
Strong
Strong English
English language
language skills
skills and
and cost
cost advantage
advantage

Significant
Significant competitive
competitive advantage
advantage in
in biotechnology
biotechnology research
research
Push
Push to
to urban
urban infrastructure
infrastructure
Low
Low proportion
proportion of
of high
high technology
technology exports
exports
Thepace
Thepace of
of technological
technological innovations
innovations have
have improved
improved which
which gives
gives aa bright
bright spot
spot for
for technology
technology
consulting
consulting
http://web.b.ebscohost.com/ehost/pdfviewer/pdfviewer?vid=7&sid=b7f3a528-21c2-433f-89bd-eead1d15cfdc
%40sessionmgr103&hid=102

PORTERs 5 Forces

ENVIRONMENT
Porters 5 Forces Analysis
Threat of
Substitutes

Bargaining Power (Supplier)

(Mid to High)

Number of suppliers- There are many market research firms which

provide data to the consulting industries but few can be trusted. Mid
to high
Suppliers provide homogeneous products but the accuracy of data
may differ (Low)
Switching Cost is very low (Low)
Vertical Integration threat is high as suppliers can move into consulting
business. (Mid to high)

Competitive Rivalry

Number of firms
High Market growth- Sluggish market has
reduced new players thus high competition
on new customers
Low Switching Cost
Low exit barriers

Mid to low switching

cost
High perceived level of
product differentiation
Mid to High chances of
buyer propensity to
substitute

Barriers to Entry

(High)

(Mid to High)

Bargaining Power
(Customer)
(Mid to High)

(Low)

Low capital cost

The industry doesnt require any highly specialized
equipment
Doesnt need any patents to enter into the company
High brand value of existing players
Economies of scale does not exist

Volume of services from

a consulting firm is low
thus less bargaining
power
Number of Customers:
High number of
customers leads to less
bargaining power
Brand image Big
three companies enjoy
a strong brand image
which reduces the
bargaining power of
customers
Availability of substitutes
is high creating high
bargaining power

http://www.spencertom.com/2008/08/17/porters-five-forces-model-analysis-framework/#.V-WFYvB9600

PRESENT SCENARIO

Consulting-IDC Marketspace

Source: https://www.idc.com/MarketScape/Business%20Consulting

Market Share

Demand Drivers

Source: : IDC's Worldwide Consulting Buyer Perception Survey, November

Consulting Major Challenges

Attracting & Developing New
Customer 81.1%
Dealing with a difficult
economy/competitive marketplace
25.2%
Finding / Keeping Good People
24.4%

Innovation / New Ideas 24.4%

Strategy / Planning Issues 24.4%

Challenges in consulting
Acquisition and retention of top clients due to less bargaining
power
Intense competition and very less differentiation in services
Catering to various skill-sets required
Understanding clients as each of them possess unique and
complex requirements
Understanding clients culture, its strategy, problems deeply
Providing solutions which adds value to the clients
Consultants under intense pressure to deliver results faster
Retaining great talents

Current Employment Potential

Largest concentration of consultancy organisations is in the four metropolitan
cities:
I. Delhi (25.7%) has the highest number of consultancy organisation among four
metropolitan cities followed by,
II. Mumbai (25.5%),
III.Chennai (12.1%) and
IV.Kolkata (9.1%) among others.
.Well dispersed and wide ranging areas of specialisation to service leads to
diverse range of clientele needs.
.Advanced technical talents/ skills at reasonable cost.
.Familiarity with local conditions

Skills Required

Communica
tion Skills

Interperso
nal Skills

Time
Managemen
t

Sound
Business
Knowledge

Consulta
nt

Attention
to Details

Analytical,
ProblemSolving,
Strategic
Thinking

Numerical
Skills

IT
Knowledg
e

Primary Responsibilities
Consulting Advisory Services, Process Consulting, Business
Analysis
Thought Leadership and IP creation Create IP that can
be leveraged to drive non-linear growth and drive business
outcomes
Solutionizing - Participate in client engagements (pursuits,
projects, discussions) and own the Solution-izing from a
domain / business point of view
Organization building - Train junior staff on Consulting
skills and train the project teams on business / domain
concepts

FUTURE PROSPECTS

Consulting in Future
Consulting estimated to grow at an average of 8% over the
next 5 years
58% of global businesses increased their expenditure on
consulting by 5%
23% increased their expenditure by 10%
SMEs increasingly hiring consultants to solve business problems
Clouds, Customers and Assets will change consulting models
Digitally enabled technology, delivery methods and empowered
customers will create new business models
Consulting is ripe for disruption. Managing Partner, KPMG
*Source - https://hbr.org/2013/10/consulting-on-the-cusp-of-

Six themes of Consulting in future

Traditional high revenue, technical work will shrink
Asset based consulting will change revenue and delivery models
Projects will be smaller, global, more virtual and will use centers
Pure strategy projects with static deliverables will shrink rapidly
Organizational change management will become science, with data
and softwares
Contracts will shift incrementally to gain sharing, licenses and
retainers
Source: Forrester Research

Drivers for Change and Disruption

Clients expect
greater speed of
delivery
Clients need
consultants to
understand
customers
Increasing no. of
complex global
transactions
Greater impact of
regulatory change

Clients creating expectations that projects will be shorter

and iterative
Consultants must react faster to prove their expertise is
delivering tangible results
Experts have to connect their expertise to actual
business outcomes
Consultants need intimate knowledge and supporting data
on customers buying patterns and habits
Transformations increases the scope, risk and impact,
hence require more globally consistent systems and
processes
Demands consultants who can deal with executives at the
highest levels
78% of CEOs are concerned about over-regulation, an
increase of 6%
Clients considering new business models would require
services like tax advice, legal advice on piracy and advice
on regulatory approvals

Source: Forrester Research

Trends and Future Direction

Generalist
Consultants

Specialized
Services

Per Project
Billing

Value-Based
Pricing

Emulate
Business
Models

Disruptive
Business
Models

Source: Forrester Research

Impact of changes on Consulting

Industry
More Projects
outside of
technical areas
and greater
differentiation
Digital Strategy
work would give
midsize firms an
opening

Projects will be
shorter and
consultancies will
offer more selfservice packages
(Automation)

Delivery will be
agile and
collaborative
through onsite
teams, centers and
virtual workgroups

Consultancies will
upgrade their OCM
with other tools
and methods

Increased license,
subscription,
retention and
equity contracts
for specific
activities

Skill sets required to match

employment
Leadership Skills
Strategic Thinking & Execution
Technical & Technology Skills
Team & Relationship Building
Communication & Presentation
Change Management

Source: HBR Article https://hbr.org/2014/03/the-seven-skills-you-need-to-thrive-

 Fast growing industry (>25% CAGR)

Ample amount of job opportunities but highly competitive
Lucrative packages and profiles
Technology driven industry
Supporting every other industry, hence no. of job would increase
Government support will make consulting industry more stable

Further research can be done on

New technologies
New business models
Increased integration with other industries
Industry/skill set specific courses for students

COMPANY ANALYSISPWC

COMPANY OVERVIEW
1854
1865

PricewaterhouseCoopers is
a multinational professional
services network headquartered in
London, United Kingdom.
It is the second largest professional
services firm in the world, and is one
of the Big Four auditors, along
with Deloitte, EY and KPMG

Price, Holyland and Waterhouse

join forces in partnership 1874
Name changes to Price,
Waterhouse & Co.

1957
Cooper Brothers & Co (UK), McDonald,
Currie and Co (Canada) and Lybrand,
Ross Bros & Montgomery (US) merge
to form Coopers & Lybrand

1990
1990 Coopers & Lybrand merges with
Deloitte Haskins & Sells in a number
of countries around the world

1 January 2003
PricewaterhouseCoopers UK
adopts Limited Liability Partnership
(LLP) status.
Source: Company website

William Cooper establishes his

own practice in London, which
seven years later becomes
Cooper Brothers

1898
Robert H. Montgomery, William M.
Lybrand, Adam A. Ross Jr. and his
brother T. Edward Ross form
Lybrand, Ross Brothers and
Montgomery

1982
Price Waterhouse
World Firm formed

1 July 1998
Worldwide merger of Price
Waterhouse and Coopers &
Lybrand to create
PricewaterhouseCoopers

COMPANY FACTS AND FIGURES

Source: Company website

STP
Segment
Parent Company:
PricewaterhouseCoopers
International Limited

Organisations looking for expert opinion and

business analysis on financial matters

USP: Expertise in accounting

and auditing

Target Group

Positioning

All industries and big

organisations

Audit & accountancy

firm

SWOT-PwC

Strengths
Leadership
Leadership among
among Big
Big 4
4

Clients
Clients comprise
comprise of
of largest
largest companies
companies across
across geography
geography

Broad
Broad and
and complimentary
complimentary Service
Service portfolio
portfolio
Diversified
Diversified revenue
revenue stream
stream

Weakness
Adverse
Adverse publicity
publicity due
due to
to lawsuits
lawsuits
Brand
Brand recognition
recognition is
is not
not the
the best
best
High
High exposure
exposure to
to mature
mature assurance
assurance and
and tax
tax services
services

Opportunities
Growing
Growing economies
economies &
& prospects
prospects
Robust
Robust demand
demand for
for management
management will
will enhance
enhance presence
presence in
in the
the advisory
advisory
market
market
Increased
Increased adoption
adoption of
of IFRS
IFRS

Threats

Growth
Growth of
of its
its competitors
competitors
Uncertain
Uncertain economies
economies

Reputation
Reputation can
can be
be easily
easily effected
effected

COMPANY SERVICE LINES

Source: Company website

COMPANY REVENUES FY 2015-16

Source: Company website

CONSULTANCY SERVICES
OFFERED

CONSULTANCY SERVICES
Key terms like Consulting and Consultancy may refer to a plethora of
disciplines. It can vary from financial advisory to management
consulting. It is estimated that more than 200 different areas of
consulting exist, based on the combinations of the expertise areas and
the industrial sectors

Source: http://www.consultancy.uk/consulting-industry/market-segments

OPERATION CONSULTING
Basic premise:
Operations can and should be a
strategic asset, and the industry,
functional and technology knowledge
depth rapidly close the gap between
ideas and results.
Services Offered:
Innovating to drive growth
Strategically reducing costs
Improving operational flexibility
Managing risk
Improving capital efficiency
Complying with complex regulatory
requirements Realizing deal value

Source: Company website

FINANCIAL CONSULTING
Financial consulting is to support
CEOs, CFOs, controllers and
treasurers to optimise the structure
of their finance functions to improve
their contribution to the business

Source: Company website

COMPANY OVERVIEW
Government and Public
Sector (G&PS) comes
under the consulting arm of
PwC,
delivering
the
advisory services to the
majorly the governments of
the emerging markets.

Transport
management

Local
governme
nt

Passport
&
immigration
Citizen
services

Digital
governance

Disaster
managem
ent

Citizen
services
Govt
process
automation

Technology
implementation

Smart
cities
Source: Company website

KEY PROJECTS AND CLIENTS

Demand increase - New initiatives by NDA government
Projected rise in revenue from government: Rs.750 Cr

Source: Company website

COMPETITIVE LANDSCAPE
New consultancy have grown by 7% in 2014.
Mergers and acquisition: In 2013 Indias auditing
and consulting company, Haribhakti Group,
merged with tax and consulting firm DB Desai &
Co to form Haribhakti Desai Consulting
Accenture India Pvt Ltd:
One of the largest business consulting companies in
India.
Subsidiary of Accenture Plc.
Business is divided into three areas: consulting,
technology and outsourcing.
In 2013 Accentures revenue from the Asia-Pacific
region grew by 3% in local currency terms

Source: Business and management consultancies in India: ISIC 7414

COMPETITORS
BIG 3

BIG 4

Source: Business and management consultancies in India: ISIC 7414

COMPETITIVE LANDSCAPE

OTHER THREE OF THE BIG FOUR

Source: Business and management consultancies in India: ISIC 7414