DATE OF PRESENTATION23-11-2010

Seminar On

“Consulting Services”PRESENTED BY

Prithwish S KotianRanjani S KSachin T S

Sandeepa N Santhosh M B

I SEM MBA(2010-11)

UNDER THE GUIDANCE OFMr. Rakesh D’souza

LECTURER

PG DEPT. OF MANAGEMENT STUDIESPESITM

Sagar Road, NH 206 SHIVAMOGGA – 577104

(KARNATAKA)

Contents1. Introduction to Consulting Industry

2. History & Future

3. Types of Consulting

4. HR Consulting

5. Trends, Profiles & Forecasts

6. Global Scenario

7. Current HR Services & Recruitment Scenario in India

8. International Recruiting by India

9. Performance of HR Consulting

10.Models of Consultation

11.Major Players

12.65 Consulting Jobs

13.SWOT Analysis

14.Conclusion

Introduction

Consulting is providing advice in a particular area of expertise. This is not the same as customer service.

Consultant

A consultant (from the Latin consultare means "to discuss" from which we also derive words such as consul and counsel) is a professional who provides professional or expert advice in a particular area of expertise. The consultants provide expert advices

in most of the fields such as management, accountancy, the environment, entertainment, technology, law (tax law, in particular), human

resources, marketing, emergency management, food production, medicine, finance, life management, economics, public affairs,

communication, engineering, sound system design, graphic design, or waste management.

Introduction of the IndustryGlobal consulting industry revenues (including HR, IT, strategy, operations management and business advisory services) will be

about $345 billion in 2010, according to Plunkett Research estimates. This represents a rebound from about $310 billion in

2009 and $330 billion in 2008. In the U.S., accounting and related services (such as tax preparation), generated an

additional $119.7 billion in 2009, down from $128.4 billion in 2008, according to the U.S. Bureau of the Census.

The consulting industry started in the late 19th century.In the mid 20th century, the world war II & post war economic environment, created demand for consultants.Tech boom in 1990s led to huge demand for IT Consulting.All the consulting business has grown rapidly since 2000.Consultancies posted significant growth from 2005 through 2007.In 2008-2009 it marked a challenging period, in light of the global economic slowdown and shrinking corporate budgets.In 2009, many consulting firms found themselves with a substantial drops in the business.However, in the year 2010, the performance of the industry is focused good with an estimated revenue of about $345 billion.

History of Consulting

Consulting is present since the human beings started giving advice. But, when people started giving advices for remuneration, they started considering it as

service business. The evolution of the consulting services have shown significant change in providing services. Today the consulting services is treated as a separate industry. The consulting services have been separated by their service fields. the

most consulted services are Management, HR, Strategic, IT, Marketing etc.

The history of consulting is very similar to the evolution of legal, accounting, and other professional service firms. Each of these industries is primarily reactive to client demand.

Arthur D. Little was an MIT professor and is generally considered the first management consultant to create an entity that employed other consultants in the U.S. (1890).

In 1926, McKinsey & Company was launched to serve general management clients. McKinsey was a new type of consulting firm focused on business strategy, while also providing subject matter experts for technical issues.

The emerging economy of World War II and the post-war economic environment created new demands for consultants. As the U.S. economy grew, companies such as the Boston Consulting Group (1963) created new ways of examining industry, products, and process measures.

Future of Consulting

In consulting, we can point out that our future will require creativity just as in our past. The role of innovation for consulting firms will continue to increase, not only in how we add value for our clients, but also in how we structure our practices to implement such innovative strategies.

Today, consultants should continue to align their firms with others that provide complimentary services and have the same organizational values and ethics, while maintaining their flexibility to respond to the general economic conditions. Innovative is the key to Consultants prosperity.

ConsultantsA consultant (from the Latin Consultare means "to discuss" from which we also

derive words such as consul and counsel) is a professional who provides professional or expert advice in a particular area of expertise.

Some consultants are employed by a consult staffing company, a company that provides consultants to clients. This is particularly common in the technology sector. Consultants are often called contractors in the technology sector in reference to their

employment contract.

Strategy consultants are common in upper management in many industries. There are also independent consultants who act as interim executives with decision-making power under corporate policies or statutes. They may sit on specially

constituted boards or committees.

THE RAPID EVOLUTION OF THE CONSULTING INDUSTRY Advisors have existed since the beginning of time--often providing advice based on subjective opinions absent of any structure, facts,

expertise or relevant experience. Unfortunately there continue to be many people who are quite capable of expressing an opinion on

something for which they know nothing about.But in the later phase,

More legitimately, academics, government leaders, and senior business executives have also been consulted for generations drawing upon the expertise and personal experience that they have amassed

throughout their long careers. However, it was not until the late 1800s when the rational, logically

structured problem solving approaches began to be formally applied to management challenges.

Arthur D. Little founded his consulting engineer business in 1886 giving management approachFrederick W. Taylor established his consulting practice in 1893.Edwin Booz established his firm in 1914.McKinsey established his firm in 1926.John PA Consulting, founded in the UK in 1943

These early firms Arthur D. Little, Booz & Company, and McKinsey & Company remain with us today.

Consulting Industry Overview

Global Consulting Industry Revenues: US$ 330.7 Bil. 2008 Information Technology Consulting: US$ 152.8 Bil. 2008 Business Advisory Services: US$ 86.5 Bil. 2008 Operations Management Consulting: US$ 48.7 Bil. 2008 Strategy Consulting: US$ 27.6 Bil. 2008 Human Resources Consulting: US$ 15.1 Bil. 2008

Trends in 2010-2012 and the impacts on the Consulting Industry

Increasing investment and expenditures of Governments worldwide Decrease of fixed salaried people in most of the client industries Decrease of peoples consumption expenditures in western industrial nations

Types of Consulting

1. Management Consulting

2. Strategy Consulting

3. IT Consulting

4. Corporate Finance & Financial Advisory

5. Consultant Engineers

6. Marketing Consulting

7. Consulting in Politics and the Public Sector

8. Real Estate Consulting

9. Human Resources Consulting

Management Consulting:

Management consultants are business consultants that specialized in providing companies and start-ups with expertise in setup and development, operations, finance, economics, market analysis, marketing, and branding. They usually have a background in business administration, business finance, and personnel management.

Strategy Consulting

Strategy consulting is one of the core components of management consulting services. In small- to mid-size scenarios, the strategy consultant and the management consultant will often be one in the same. In large business scenarios, the management consultation team will often include a specialized strategy consultant.

The strategy consultant's job is to find solutions to problems for which there is no textbook answer. The strategy consultant specializes in being an innovator, which is a highly sought after skill set in today's complex business environments.

IT Consulting

Information technology (IT) consulting is a relatively young field that focuses on providing businesses with the tools necessary to best leverage information technology. In addition to providing experience and advice, an IT consultant will often implement, deploy, and administer IT systems on behalf of the company.

Corporate Finance

Corporate Finance Consulting supports start-ups, small businesses and public traded companies to achieve the perfect financing structure with the right mixture of debt and equity.

In the task of financial questions financial advice is almost indispensable. Financial Consulting assists to make the right decisions.

Consulting Engineering

Consulting Engineers are offering value creating knowledge in various industries. Main areas are production as well as the construction sector. These industries account for a major stake of the economy. According to the National Institute of Economic and Social Research, it is for about 30% in the UK.

Marketing Consulting

Marketing Consulting assists firms to sell their products and services. Marketing Consultants have a deep knowledge and a solid experience in how to plan the optimal marketing mix.

A well developed marketing strategy is the key to, succeed against competitors. The right marketing program quantifiably leverages new product success rates, customer satisfaction and retention, brand and customer equity.

Politics and Public Sector Consulting

Consulting in Politics and the Public sector became an important market for Consulting services in the recent years. In order to transform public services approximately £20bn were spend for consulting services in

the years between 1997 and 2006 according to timesonline.co.uk.

Real Estate Consulting

Real Estate Consulting offers a wide range of services. Real Estate Consultants assist acquiring and selling property. They also help to develop Real Estate construction projects e.g. with specialized tenancy solutions. Optimal management policies for corporate real estate are also provided.

HR Consulting

HR consulting or Human Resources consulting is one of the primary components of management consulting but it has branched out into its own specialization due to the needs of businesses becoming more complex and specialized. The core fields around which most HR firms base their consulting methodologies are human capital, health and benefits, merger and acquisitions, communication, retirement, and outsourcing. Some business will use a firm to provide all of their HR services while others will use them as needed.

Human capital is one of the four types of fixed capital

Human resource consulting is a $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.

But, there is a great deal of overlap between in the services provided by firms specializing in HR consulting, IT consulting, and management consulting.

HR Consulting Marketplace: Key Trends, Profiles and Forecasts

HR Consulting Marketplace is Kennedy’s quintessential, annual research that examines the overall HR consulting segment and its three service segments: Benefits consulting, HR Technology consulting, and Talent Management consulting. It gives in depth analysis of the trends driving demand for HR consulting, changes to client spending and engagement patterns.

HR Consulting Service Segment:

Benefits Consulting: Retirement and actuarial consulting with respect to defined benefit, hybrid, and defined contribution plans as well as health and welfare or healthcare consulting on healthcare coverage

HR Technology Consulting: Advisory on the structure and management of the HR function and the design of service delivery in an effective and cost efficient manner.

HRO and Software Advisory: Consulting on the selection of ERP systems providers and best-of-breed software providers as well as on HR business intelligence and analytics software

Talent Management Consulting: Advisory on the overall people strategy and the use of management of human capital assets to reach an organization’s business objectives.

New Key Trend:

Many human resources consulting firms have developed proprietary software and support tools. These can assist companies on a long-term basis with managing their human resource functions. Companies should educate themselves on what types of tools are available, and how those tools can enhance their human resource operations.

Traditional strategy & HR consulting providers face threats

At a time when the majority of companies are under increasing pressure to reduce costs due to the weakened economy, HR departments expect to maintain their current strategies toward outsourcing HR services, according to Hewitt's HR Outsourcing Trends and Insights 2009 survey.

Hewitt recently surveyed 104 companies on how they are using outsourcing to improve the delivery of their benefit and HR programs From the survey results, it's clear that outsourcing does play an integral role in HR's ability to deliver programs to employees.82 percent of companies that have measured their outsourcing programs said they realized the benefits they had hoped to gain by outsourcing.

There are number of reasons why choose to outsource HR services, including:Reducing costs: Sixty-five percent of organizations that indicate cost savings is a primary outsourcing objective.Gaining access to outside expertise: Most of the company use outsourcing for the outside expertise.Improving service quality: 81 percent of respondents indicated that they met or exceeded their service quality targets.Focusing on strategic HR priorities: : Outsourcing helps to remove the day-to-day administration of managing HR programs so HR can focus on supporting on their most important business challenges.

Global Scenario

Human resource consulting is about a $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. Rebounding from a decline in previous 2003-2004, the HR consulting industry saw growth of 6.1 percent in 2005 and maintained a steady growth rate of 9.1 percent in 2006, resulting in an $18.4 billion market, according to a recent study conducted by Kennedy Information. But in 2008 it has declined to $15.1 billion. Furthermore, the study forecasts that the global HR consulting industry will experience an 8.3 percent compound annual growth rate from 2006 to 2010. Legal and regulatory changes regarding retirement benefits, such as the enactment of the Pension Protection Act in 2006, are identified as being the lead drivers within the U.S. market. Other factors contributing to demand include increasing need for executive talent management strategies and the implementation of HR technology as well as trends in business process outsourcing, including HR outsourcing.

There are about 950 firms globally that provide HR-related consulting services in such areas as recruitment, compensation, retention and benefits.

A study identified the top five revenue producing HR consultancies as Mercer ($2.4 billion), Deloitte ($1.6 billion), Watson Wyatt ($1.4 billion), Aon ($1.3 billion), PricewaterhouseCoopers ($1.1 billion) Other major players include Towers Watson, Hewitt Associates, Hay Group and Buck Consultants, etc.

Current HR Services & Recruitment Scenario in India

Services:Actuarial: Control pension benefitsRetirement: Maximize your return with a comprehensive retirement strategyCompensation: Giving best solution in compensation strategyTalent and Performance: Maintaining talent management & performance recordsGovernment: Providing HR services to the Govt.Global Risk: Solution to face the Global riskHR Outsourcing: Providing outsourcing services to help the organization to concentrate on business objectives.

Recruitment:Recession is just a momentary situation not a long term affair. Last year saw the

worse of economy all over the world. Lay offs, price-cutting, losing projects and many more. India, the country which renders service to almost all great nations in the world was affected too. Big IT giants and banks losing money started showing pink slips to its even experienced employees. We saw the present and foresee the future even worse.

The best Manpower consultants in India who have thrived worked overtime to provide the corporate and industries with the best of the man power at a prices that could keep them profitable in recession. They have lowered their consultation charges, changed the interviewing process and brought in many other innovative concepts to make it work and they have succeeded to an appreciable extent.

Many of the job consultants have placed potential candidates in the marketing and sales sector which promises an ever growing career prospect even at this time. The pharmaceutical and medical sector too provides great career prospects ahead. With more discoveries of drugs, medical technologies, clinical research is booming in India. Potential candidates from various fields of science are hired for specific purposes.

Recruiting Manpower Globally by Indian Manpower Recruiters:

India is one of the developing countries economically and a talent-rich country. Today India has emerged as a hotbed in offering vibrant young talented professionals to overseas companies across the globe from various fields. India is one of the major recruitment market in the World for developed countries.

Indian manpower recruiters are recruiting no’s of Indian professionals across the globe. Thousands of overseas work permit visa are issued to Indian professionals every year. Applicants who apply overseas work permit visa are still increasing every year.

Top recruiters will aim and focus on how to project and place a good candidate to employers who desperately need to fill the positions. This extended relationship shows that the recruiter have given the quality series to the client.

What Do Human Resource Consultants Do Today?Human resource consultants typically have many duties. Generally, human

resource consultants are outside experts who provide direction to the personnel or human resources (HR) department of an organization.Some human resource consultants are hired to handle: •Recruitment and staffing•Conduct performance appraisals•Determine compensation and benefits for employees•Employee training and development•Ensure employee safety and health•Assume responsibility for human resource research.

A company that is facing high costs and the need to lay-off employees may also hire a human resource consultant to provide help. Human resource consultants may also assist with setting the guidelines for fair and equitable, legal and ethical payment of employees.

What Is Human Resources Outsourcing?

Human resources outsourcing is a service that companies can opt to pay for instead of hiring a full-time person, or multiple full-time positions, for the same purposes. For companies that do not need a full-time person for certain aspects of human resources, there may be a cost savings when compared to employing additional people. All or part of the human resources function can be outsourced, including financial matters, benefits, and even recruitment and hiring.

Performance of the HR Consulting Industry

Company HR Consulting

Revenue(present)

HR Consulting

Revenue(previous)

No. of HR Consulting

Clients Cos.

No. of full time HR

Consultants

1. Mercer HR

Consulting

$2.4 billion $2.2 billion Not available 9000

2. Deloitte Consulting $1.587 billion $1.483 billion NA 8091

3. Watson Wyatt

Worldwide

$1.39 billion $968 million NA 6300

4. Aon Consulting $1.28 billion $1.25 million NA 6500

5. Price Water House

Coopers

$1.1 billion $980 million 17000 5350

6. Towers Perrin $1.027 billion $930 million NA 2069

7. Hewitt Associates $861.8 million $813.7 million 2300 NA

8. Hay Group $389 million $340 million 7000 1660

9. Segal Co. $180.2 million $180.2 million 2600 662

There are more than1000 firms globally that provide HR-related consulting services in such areas as recruitment, compensation, retention and benefits.

Models of ConsultationThere have been a number of helpful models of the consultation which have been

produced over the last 30 years. Some are task-orientated, process or outcome-based; some are skills-based, some incorporate a temporal framework, and some are based on the doctor-patient relationship, or the patient’s perspective of illness. Many incorporate more than one of the above.Generic Model

Client-Centered Case ConsultationConsul tee-centered case consultationConsul tee centered administrative consultationBehavioral Consultation Model/Behavioral-operant ModelOrganization Consultation

Major Players in HR Consulting in Globe

Mercer ($2.4 billion)Deloitte ($1.6 billion)Watson Wyatt ($1.4 billion),Aon ($1.3 billion)PricewaterhouseCoopers ($1.1 billion)

Other major players include:Towers Watson, Hewitt Associates, Hay Group and Buck Consultants

Founded: 1975Headquarters: New York City, New York150 offices in 42 countriesProducts: Human resource consulting services, including retirement, health & benefits, human capital, surveys & products, communication, investments, outsourcing, and mergers & acquisitionswww.mercer.com

Watson Wyatt Worldwide

Founded: 2005Headquarters: Arlington, Virginia, United StatesNumber of locations 106 officesKey people John J. Haley – President, CEO, and Chairman of the Board Revenue1.68 billionWatsonWyatt.com

Deloitte

Founded: 1845Deloitte Touche Tohmatsu Limited (also branded as Deloitte)

Aon Corporation

Founded: 1919Founder(s) W. Clement StoneHeadquarters: Aon Center Chicago LoopProducts: Insurance, Risk management,Human resource consulting RevenueWebsite: AON.com

PwC

Founded: 1849Headquarters: London, United KingdomProducts: Assurance, Tax Advisory, Consulting, Financial Advisory, Actuarial, Legal Revenue, HR.Website: pwc.com

Towers Watson

Founded: 2010Headquarters: New YorkWebsite: TowersWatson.com

Hewitt Associates

Founded: 1940Headquarters: Lincolnshire, IL$3.2 billion in fiscal 2008Website: www.hewitt.com

Hay Group

Founded: 1943Headquarters: Philadelphia, United StatesProducts Management consulting servicesWebsite www.haygroup.com

Buck Consultants

Founded: 1916Headquarters: New YorkGlobal HR Technology and AdministrationHealth and ProductivityHuman Capital ManagementRetirement EmployeesWebsite: www.buckconsultants.com

Sterling Global HR Consulting

Founded: 1982Headquarters: United StatesSterling was established in the United States in 1982. Sterling has opened its branches in many different places like Beijing, Singapore, Shanghai, Japan, India, Seoul & United Kingdom etc. www.sterlinghrconsulting.com

Major Players of HR Consulting in India

ABC Consultants Private Limited

Founded in 1969 by Dr B P Agrawal, ABC Consultants is the pioneer of organized recruitment services in India. The best recognized recruitment brand nationally.

Advanced Consultancy Services

The Organization Advanced Consultancy Services is among the leading Overseas Recruitment Consultant and Manpower supplying agency with an excellent track record and recognized by the Government of India.

Datamatics Staffing Services Pvt Ltd 

Datamatics Staffing Services Pvt Ltd (DSS) has been in recruitment since 1969 and is one of the oldest professionally-run recruitment consulting firms in India. DSS is a part of the 65 Million US$ Datamatics Group founded by Dr L S Kanodia.

Ma Foi Randstad

Ma Foi Randstad is a part of Randstad

Major Players of HR Consulting in Bengaluru

9to6 Consultants

9 to 6 Consulting is among the few HR consulting firms that have grown rapidly over the past few years, to become one of the fastest growing HR consulting firm in the country.

Aaren system

Aaren systems is specialized in providing the following services

    • HR-Consulting Services (Specialized in Reference checks in pre- employment and post employment and Qualification check)    • Contract Staffing     • Permanent Staffing     • Contract-to-hire

Axis Consultants

Axis Consultants

Axis Consultants is a major indigenous Manpower company and Placement Agency organized to provide manpower technical and non technical consultancy services to the ITES and IT Industry in Hardware, Software & Telecommunications.

HR Consultant in Shivamogga

Udhyoginfo.com

Founded: 2010With a Vision & MissionTo be the leading HR consultants within and beyond our geographical boundaries.

Based in Shivamogga (Karnataka)

Employment Website in India

Monster.com

Monster Worldwide, Inc. Monster

Created in 1999

Naukri.com

Nau. kri.com is a job site operating in India founded by Mr. Sanjeev Bikhchandani in March 1997

JobsAhead.com

CoolAvenues.com

CoolAvenues.com is an MBA community focused website in India which caters to MBA Aspirants, B-School Students and MBA alumni.

JobStreet.com is a job portal founded in 1997. Founded in Malaysia, it has expanded its operations and services to countries like Singapore, Philippines, India, Bangladesh, Japan and Thailand.

HR consulting industry has shrunk by fifth in recession

The HR consulting industry has shrunk by 20 per cent in the past year as demand suffers in the recession, researchers have claimed. The report by specialists’ source for consulting.com, which included a survey of the largest buyers of consultancy services, concluded that there is still significant demand for HR consulting but it was increasingly focused on elements that offer a measurable financial return.

65 Consulting Jobs

Consulting is an extremely broad term. There are many types of consulting work, or consulting fields, ranging from business to personal services. Here is a list of 65 examples of fields where consultants may choose to work.

1. Accounting 2. Advertising 3. Architecture / Building Safety 4. Beauty 5. Business Analysis 6. Business Change / Reform 7. Business Networking 8. Career Advice 9. Childbirth 10.City Planning 11.Clothing / Fashion 12.College Admissions 13.College Planning 14.Computer Training 15.Crisis Management 16.Diet & Nutrition 17.Diversity in the Workplace 18.E-commerce

19.Editorial 20.Energy 21.Entrepreneurship / Small

Business Start-up 22.Environment 23.Fitness24.Home Improvement 25.Human Resources (HR) 26.Imports / Exports 27.Information Technology (IT) 28.Insurance 29.Intercultural Communications 30.Interior Decorating 31.Investments 32. Leadership33. Legal

34. Management

35. Market Research

36. Marketing

37. Marriage Relations

38. Media Relations

39. Medical / Health

40. Mental Health

41. Organization

42. Parenting

43. Personal Finance

44. Public Relations (PR)

45. Public Speaking

46. Publicity

47. Real Estate

48. Retirement Planning

49. Sales

50. Search Engine Optimization (SEO)

51. Social Policies

52. Software Training

53. Strategy Formulation

54. Stress Relief

55. Taxes

56. Team Building

57. Telecommunications

58. Time Management

59. Tourism

60. Travel Planning

61. Venture Capital

62. Web Site Management

63. Wedding / Bridal

64. Weight Loss

65. Wills & Estate Planning

SWOT Analysis

Strengths:

•The Expertise knowledge of the consultants in the respective field is the strength of the industry. Every person will be knowledgeable in his own way.

•Specialized approach in every field has lead to increase in the demand for the consultants in which they are specialized.

•The long presence of consulting activity in the world has created a trust in the minds of the people who ask for an advice.

•Ability to provide solutions to face the Recession.

Weaknesses:

•Wrong person choosing a wrong field to start consulting services. There are few, who choose wrong field as their career. This makes the consulting services as weaker, loosing the hopes of the clients.

•Dependent on the economic situations. Mainly the IT, Management, HR, Engineering, Marketing and Real Estate Consulting depend upon the economic conditions/situations.

Opportunities:

•At present time, the recovery stage of the global economy creates an immense opportunities to the consulting services. The services like Management, HR, IT, Tax & Law, Marketing, engineering, etc will get a boost now.

•For HR Consulting, especially in countries like India & China, where the population is high, the opportunities are vast to meet its clients requirement at low cost.

•The globalization gives further opportunities to the consulting services by formation of huge number of companies.

•Lack of knowledge of the people will be an opportunity for the consultant to provide his service.

Threats:

•Global competition has become a threat for the domestic players. As globalization increases the opportunities, the global players threat the domestic and local players.

•Recession is another threat for the consulting industry. When it comes to HR Consulting, the recession has shrunk the industry by 20% in the past year.

Conclusion:The consulting services have been given a new thought over decades. Evolution of the industry has shown the future prospect of the industry. The whole consulting services industry is valued nearly $300- $345 billions. In this the HR Consulting services valued as $18.4 billion. Many consulting firm have entered the industry. But survival of the firm will purely depend upon the degree of services they provide and the innovative approach they give. Every consulting has its own approach in its services. HR consulting has introduced variety of services other than Recruiting like Human Resource Outsourcing, Compliance, Human Resource Technology, Consultation Models etc. Globalization has given a immense opportunities to the consulting industry to give its best services to all over the world. All the major players are performing well in the industry by giving best of their services to their clients. The industry has shrunk by the global recession occurred in the past year. But, it has shown its capability of surviving in the recession period.

ThankYou

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