The global economy is currently going through a somewhat paradoxical phase. On the one hand, rapid digitization has triggered off a tremendous scope of innovation within the rubrics of traditional business models and forayed into newer markets.
On the other, the global economic meltdown has adversely affected industries across all spectrums. Firms have always depended on the advisory of the management consultants to optimize their business strategies in a way to attain maximum success at their respective ventures. In today’s context, management consultancy is mostly sought to scale up the business, confront economic exigencies, and gain insights about emerging markets.
The intense global competition and volatile market conditions have made companies increasingly dependent on the expert advice offered by the consultants to sustain themselves. In the context of the shrinking relevance of advertising agencies, marketing consulting has established itself as the most reliable resort for operational advice.
However, for the majority of businesses, management consulting offers an easy way to streamline the entire processes of a company.
Management Consulting Industry: The Untapped Potential
Companies require the management consulting insight to make a foray into the niche requirements of the customers and be at par with the changing landscape of business through what is commonly perceived as disruptive innovations. Based on the management consulting market research, the market value is growing at a rate of approximately 4–5 percent CAGR and is expected to reach a value of $285 billion by the end of this year.
The proliferation of digitally-driven markets and the advent of e-commerce portals have made management consulting market research vital to the survival and growth prospects of most firms. Accordingly, there are two tiers of a management consultancy that has tremendous potential in the contemporary context.
Firstly, the low stakes management consulting is directed at industry giants who require solutions to fix operational difficulties. Secondly, the high stakes management consulting is aimed at providing methodological knowledge to companies who are trying to venture into diverse market spaces and gain more significant consumer insights.
Several industry stakeholders espouse the unwavering potential for management consulting market research.
- Nearly 35% of business houses reported that they had a “roughly even split between optimization and transformation.”
- Fifty percent of business houses stated that their services were focused on “both, but mostly transformation.”
- Less than 4% of the providers surveyed were focused primarily on transformation, and none were mostly focused on optimization.
Currently, North America holds 93% percent of the management consulting market supply from while the Asia Pacific countries are lagging considerably.
Future Prospects of the management consultancy industry
The way forward in the management consultancy industry can be looked at through the lens of both industry demand and supply of management consultancy professionals:
Industry Focus:
There is broad interest in commissioning management consultants in varied businesses across the market, and there are indications that organizations are generally open to consulting providers for help in achieving their ambitions even if the core expertise in terms of subject matter experts and industry experts are within the resource pool of the company.
According to a survey of CEOs and senior business executives, more than half of them stated that their organizations have a management initiative or transformation program in place to make their business more lean and efficient.
Respondents to the same survey stated that they are likely to make a change to their organization’s business model between 2018 and 2020 according to the recommendations of their consulting initiatives.
Supplier focus:
Consulting providers have responded to this rising demand with increasingly sophisticated offerings aimed at helping these organizations achieve their diverse business ambitions, resulting in a large and growing market for business consulting services.
Market reports state that consulting providers were focused on two fronts.
- Helping clients optimize current business processes.
- Planning or preparing for business disruptions in the respective company verticals.
Besides looking at the prospects of the management consultancy industry from the perspective of the industry practices or supply chain, the management consultancies may also look at a few alternative steps, going forward that can yield the best results for the clients.
Firstly, expanding the elements of the gig economy into the domain of highly skilled experts who form teams together to solve business problems for clients could be a good approach.
Secondly, advisories can be disbanded faster instead of the current system of lengthy and expensive engagements for more target-oriented, deadline-driven outcomes.
Conclusion
The management consulting market overall sees a positive growth as the importance of consulting with people from varied points of view become more important to industries. However, the future of management consulting lies in making specific systematic changes in industry practices, keeping in view the dynamic nature of the markets.
Therefore, shorter, more result-oriented and accountable and flexible engagements with smaller teams are expected to be the norm for industry clients and consulting bodies in the upcoming days as they offer more value for money and will make more business sense for clients of future industries.
Nisha Pandey
Latest posts by Nisha Pandey (see all)
- Trucking Business In California – What You Should Know Before Starting It - October 11, 2021
- Top Reasons to Practice Mindfulness - September 29, 2021
Nice
your post is really awsome i had bookmark your post.
hello
very nice article for sharing with me and another
Useful Content. Thanks a lot for the info!