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SUBMITTED TOSUBMITTED TO -- SUBMITTED BY SUBMITTED BY--

DR. ANIL GORAY ANSHIKA SRIVASTAVADR. ANIL GORAY ANSHIKA SRIVASTAVA -- 0505

HARSIMRANHARSIMRAN JEET SINGH BRARJEET SINGH BRAR--1313

VIVEKANAND SINGHVIVEKANAND SINGH--4040

VAIBHAV MASIHVAIBHAV MASIH-- 3838

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Road Mapy INTRODUCTION

y OVERVIEW

y TYPES AND RANKINGS

y LIST OF TOP CONSULTANCIES IN INDIA

y INDIAN CONSULTANCY INDUSTRY.

y SIZE AND EXPORT PERFORMANCE

y LATEST TEND AND FUTURE

y

GOVT. INITIATIVESy FOREIGN TRADE POLICY (2009-14)

y CONCLUSION

y REFRENCES

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INTRODUCTIONy India has been globally recognized for its fast paced

development. The service sector has been growing at afast pace and now contributes around than 59.6% to

the GDP.

y Propelled by the increasing demand for consultancyservices, both for domestic and foreign firms, a study

by Assocham pegs the consulting sector in India togrow at an annual rate of 30 per cent, progressingrapidly towards becoming a Rs17,000-crore industry byend of 2010..

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INTRODUCTIONyAccording to Assocham (The Associated Chambers of

Commerce and Industry of India) president Swati

Piramal, the US, the UK, Japan, China, Saudi Arabiaand Gulf nations acknowledge the competence ofIndian consultancy firms, with demand growing in theEU as well.

y She cited the competitive edge of these firms over theircounterparts in the ASEAN countries as the reason fortheir preferred status

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INTRODUCTION

y Indian consulting companies have strong capabilities

in areas like civil engineering, telecom, power,metallurgy, chemical and computer software.

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OVERVIEW

Industries Served (Example companies)

y Automobile & assembly (GM)y Chemicals (Dupont)y Consumer packaged good (P&G)y Electric power & natural gas (DTE)y Financial services (Washington Mutual)y Marketing & salesy Metal & mining (ArcelorMittal)y Petroleum (Exxon Mobile)y Pharmaceuticals (Pfizer)y Social/government (WHO)y Telecommunications (AT&T)

What are consultants?Consultants are hired by companies to solve theirproblems while creating sustainable value

Specific work done

y Increasing market share

y Increasing profitability

y Evaluate/introduce newproducts/services

y Marketing/sales

y Logistics

y Merger/acquisition

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Types of consultancies

Currently, there are four main types of consultingfirms:

y Large, diversified organizations that offer a range of services,

including information technology consulting, in addition to astrategy consulting practice (e.g. Accenture, ABeam Consulting,Capgemini, Deloitte, IBM). Some very large IT service providers havemoved into consultancy as well and are also developing strategypractices (e.g. Wipro, Tata Consultancy Services, Infosys)

y Medium-sized information technology consultancies, that blendboutique style with some of the same services and technologiesbigger players offer their clients.

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Types of consultanciesy Management and strategic consulting specialists that offer primarilyStrategy Consulting and Business Intelligence Models to any industries

(e.g. Bain & Company, Booz Allen Hamilton, McKinsey & Company, ArthurD. Little and The Boston Consulting Group).

y Boutique firms, often quite small, which have focused areas of consulting

expertise in specific industries, functional areas or technologies. Most ofthe boutiques were founded by famous business theorists. Small firms withless than 50 employees are often referred to as niche consultancies. If theyhave a unique concept and market it successfully, they often grow out ofthis segment very fast or are bought by larger players interested in theirknowhow.

y A fifth type that is emerging is the sourcing advisory firm, that advisebuyers on sourcing choices related to insourcing, outsourcing, vendorselection, and contract negotiations. The top 10 sourcing advisors (asranked by the Black Book of Outsourcing)were TPI, Gartner, HackettGroup, Everest Group, PwC, Avasant, PA Consulting, and EquaTerra

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Top Consulting Firms

y McKinsey & Company (8.390)y The Boston Consulting Group (7.978)y Bain & Company (7.874)y Booz & Company (6.514)y Deloitte Consulting LLP (6.107)y Monitor Group (6.071)y

PricewaterhouseCoopers (5.998)y Mercer LLC (5.947)y Ernst & Young LLP (5.914)y Oliver Wyman (5.860)y Accenture (5.711)

Courtesy :www.Vault.com

1 McKinsey & Company (8.243 )

2 Booz Allen Hamilton (7.330 )

3 Deloitte Consulting LLP (7.153)

5 Accenture (6.830)

6 IBM Global Technology Services (6.715)

7 Cisco Systems, Inc. (6.622)

8 Lockheed Martin Corporation 6.251

9 Oracle Consulting

10 Capgemini 5.821

16 InfosysConsulting Inc. 4.993

20 TataConsultancy Services 4.564

Top TechTop Tech Consulting FirmConsulting Firm

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List OfTop Consultants OfIndiay

Global hunt.y Ambrosia synergizing methods.

y Careerist management consultant.

y Reliance quality management.

y

ABC consultant Pvt. Ltd.y Amritt Venture.

y L&T INFOTECH

y L&T RAMBOLL

y Mastermind network.

y Wipro InfoTech ltd.

y Infosys Technologies Ltd.

y Tata Consultancy Services Ltd.

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Few Facts About Indian Consulting

IndustryLargest concentration of consultancy organisations is in

the four metropolitan cities:

1. Delhi (25.7%) has the highest number of consultancyorganisation among four metropolitan cities followedby,

2. Mumbai (25.5%),

3. Chennai (12.1%) and

4. Calcutta (9.1%).

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Specialities t at attri te t t e

strengt fIndian ns ltancy

Well dispersed and wide ranging areas ofspecialisation to service diverse range of clienteleneeds.

Advanced technical talents/ skills at reasonable cost.

Familiarity with local conditions

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Competitiveness ofIndian Consultancy

Exportsy International firms are larger in size and operate across countries

which give them market access to these countries and also theopportunity to tap the market for consulting business. HoweverIndian consulting organizations are growing with great pace tocompete with international organizations

y Local presence in the countries benefits multinationalorganizations in liaisoning with clients in these countries withsustained business development resulting better prospectingrecord with large expenditure on business development whencompared to Indian firms who largely depend on proactive

business development in these countries at low businessdevelopment cost.

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Drivers for Consulting Services

yAfter Independence, the Indian Government hadfocused on investment in core industrial sector and

infrastructure. The investment in these sectorsattracted various construction and engineeringcompanies to explore the business opportunities andcontribute their expertise in these sectors.

y

Domain experts were required who could provide theircore skill and competence in designing and buildingthe core industry, dams, roads, buildings etc.

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Drivers for Consulting Services

y Over the years, as the Indian industry startedmaturing, the Indian consulting industry also started

expanding, not only in terms of size, but also in termsof the service offerings.

y Over the period, specialist consulting advice was beingsought by clients in India and this opened theopportunity for a number of specialist organizations todraw on their specialist knowledge base and resourcesto meet the demand for specialist consulting services.

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Statistics

Statistic Quantity unit year source

Global Consulting Industry Revenues (including HR, IT,strategy, operations management & business advisoryservices)

330.0 Bil. US$ 2008 Reuters

Information Technology Consulting 152 Bil. US$ 2008 Reuters

Indias outsourcing Industry 40.3 Bil. US$ 2008 Nasscom

Indias outsourcing Industry 73-75 Bil US$ 2008 Nasscom

Company employees nationalities Revenue Rs. Mlln.

TCS 1,49,654 78 76503

Infosys 1,09,882 73 59287

Wipro 1,02,746 30 69666

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Strengt s and eaknesses fIndian

ns ltingy The major strengths of Indian consulting

organizations include professionalcompetence, low cost structure, diverse

capabilities, high adaptability and quicklearning capability of Indian consultants

y The majorweaknesses of Indian consultingorganizations, which has hindered theexport growth of consulting sector in thecountry, are low quality assurance, low localpresence overseas, low equity base, lack ofmarket intelligence, low level of R&D

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Latest Trends in Consulting Industry

y Fast Growth

The business world is desperate for consulting help.With excess staff being cut down, most organizationslack the technical, strategic and project managementskills to handle the benumbing rate of technological andmarket change.

The consulting industry is trying its best to

accommodate the demand. Big consulting firms areinhaling new employees, gulping up smaller firms andmerging with peers.

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Latest Trends in Consulting Industry

y One stop for all your solutions In addition to a boom in the number of consulting

firms, the size of individual firms is growing in responseto another industry trend: one-stop shopping.

Providers that can't compete on size will still try to offerone-stop shopping by outsourcing a chunk of a client'sproject to another firm while maintaining responsibilityfor the overall project.

Knowledge management tools, best practices databasesand the Internet make it possible for consultants to drawupon the knowledge of every consultant in theorganizationas many as 27,000 people in a firm likePriceWaterHouseCoopers, for example.

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Latest Trends in Consulting Industryy Shortage of people

The greatest threat to the growth of consulting firms istheir inability to get enough qualified people.

Some firms are already devising creative solutions suchas launching their own accredited MBA programs -geared toward the specific needs of consultants.

Smart people are continuing to gravitate toward the

consulting profession, especially with its heighteneddemand and visibility, not to mention inflated salaries.

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Latest Trends in Consulting

Industryy In a down economy, highly successful companies will

invest more in customers, not less. Companies willcompete for customer share, not market share.Companies will realize customer satisfaction doesn'ttranslate to loyalty and will stitch their customerchannels together.

yAnd finally, companies will shift to a long-term focus.Only one thing is for sure the only thing that isconstant in the consulting industry like any otherindustry is change!

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The Future of Consulting Is

Reflected In Its Pasty Over the decades, the management consulting

industry has responded creatively to the changingneeds of clients, leading to the growth of a thrivingindustry. The insights of history provide guidance asconsultants seek the innovations to meet the futureneeds of clients.

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The Future of Consulting Is

Reflected In Its Pasty Milan Kubr, an authority on the management

consulting industry, reminds us that Consultants areinventors and creators of their own markets and theirfuture. In the early years of the industry, consultantsbuilt highly flexible businesses on two market realities:the rise of management as a science, and evolvingeconomic conditions.

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The Future of Consulting Is

Reflected In Its PastyAs inventors and creators of our own markets and

future, management consultants will continue to relyon the delivery of knowledge and general economicconditions. We can benefit from examining our past tounderstand the types of expertise our clients needfrom us. This is our source of value, and as historyindicates, this changes as our clients needs change.

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Government Initiatives

y In the recent period, the trade policy in India reflectsthe strategic importance of Indias comparativeadvantage of trade in services. The services sector hasbeen identified as a thrust sector for trade policy. TheForeign Trade Policy, 2004 09 has announced thesetting up of Services Export Promotion Council tomap opportunities for key services in import markets

and to develop strategic market access programme.

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Government Initiatives

y Some of the key initiatives of the government inpromoting exports of consultancy services are throughMarket Development Assistance (MDA), Market

Access Initiative (MAI) scheme ,proactive EXIM Policy

and EXIM Bank schemes.

y Government also provides exemption on service tax forexport of consultancy services. However due to lack ofclarity in the provisions in the present notification,

consultancy export may be affected.

y Income tax exemption under section 80 O need to bereinstated to enhance consultancy export.

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SCHEMESIN FTP(2009-14)y SERVED FROM INDIA SCHEME (SFIS)- Objective is

to accelerate growth in export of services so as to create

a powerful and unique Served From Indias brand,instantly recognized and respected world over.

yAll Service Providers shall be entitled to Duty CreditScrip equivalent to 1 0% of free foreign exchange

earned during current financial year.

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SCHEMESIN FTP(2009-14)y Duty Credit scrip may be used for import of any capital

goods including spares, office equipment and

professional, equipment, office furniture andconsumables; that are otherwise freely importable and/ or restricted under ITC(HS). Imports shall relate toany service sector business of applicant.

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Conclusion

y The management consulting field is highly developed

in only a few key geographies, including the UnitedStates. Thus, the US-based firms face relatively littleforeign competition. However, with the very fast ratesof economic development in countries such as Chinaand India, this situation would change over time. Thelarge firms who have globalized proactively could findthemselves in a favourable position should demand forconsulting services in these markets increase.

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Reference Source

y http://www.timesascent.co.in/index.aspx?page=article&sectid=2&contentid=20080707200807071229031867dc432a7

y http://www.managementconsultingnews.com/interviews/czerniawska_interview.p

hp

y http://www.managementconsultingnews.com/interviews/phillips_interview.php

y http://www.managementconsultingnews.com/articles/thorp_article.php

yhttp://www.domain-b.com/management/consulting/20071003_assocham.html

y Consulting Clubs article, IIM Calcutta

y www.vault.com

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Thanks a lot

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Questions

HeartlyWelcomed

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