Modern Consulting Organizations: Growth Drivers, Challenges And The Way Forward

Right from its inception, the consulting industry has made a profit by selling advisory services to client organizations. Consulting organizations provided beneficial outcomes to companies in the areas of employee staffing, back-end operations and other strategic services. 

The consulting space is gigantic. With increasing global connectivity, India is the global hub for the consulting sector. The foreseeable future of consultancies in India depends on the overall industrial outlook of the country. 

Rising Demand for Consultancy Services 

Domestic and foreign firms are expanding their footprint in the region. Consulting companies are seeing raising opportunities due to the enhanced economy and increasing demands for consultancy services. 

Traditional management consulting will languish and merge itself with IT consulting services.

In a world of increasing complexities, it is important to ensure sufficient distribution of the present knowledge throughout the company.  

Increasing Competition 

Additional changes occur through new entrants. Enchanted by the impressive market growth, multiple non-consultancy companies will establish their consultancy departments.  

The influx of single practitioners and small consultancies is expected. This wave of fresh entries will have dual effects. The enhancement of competition would be clear, leading to acquisitions and mergers and in the worst-case scenario, breakdowns. 

Growth Drivers for The Consulting Industry 

Complexity management 

As global growth and the businesses are reaching their peak, the internal complexity in scaling and in running any operation grew by an exponential factor. 

New challenges continue to surface, from managing a worldwide supply chain to figuring out a multi-channelling marketing strategy to enjoin the big players in the field. 

International Expansion 

The expertise of the present consulting industry has increased. This is leading to an increase in the number of offices in other countries. The consultancy industry has expanded across every country across the globe.  

Organizational growth

Not only external expansion in the international front but consultancy companies like auto consulting and retail consultants have also started expanding vertically. In a few cases, the consultancies have expanded into the client's organizations as well. 

Challenges Facing the Consulting Industry 

Dissemination of management knowledge 

Simply put, global management expertise has decreased substantially, thus bringing down the value of the original value concept.

The increase in the number of MBA graduates has led to the dilution of the talent pool. Recent reports suggest that consulting companies like consultants engineering sector could not find employable MBA graduates in many colleges. 

An increase in client demand for implementation 

Clients are bearing down on consulting companies for practical results. Clients do not certainly want recommendations. The absence of an internal cheerleader to push the project forwards after the consultants are gone is one of the reasons. In some cases, the client is in short of the right talent to execute the solution. Another reason maybe is that the recommendations are too sophisticated, too time and labour intensive or too expensive to implement. 

Summary 

Consultancy companies have seen enormous technological shifts and a dynamic business environment. The future of the retail consultant and auto consulting industries would be to create a meticulous approach to business strategy to enhance expertise and then delivering that expertise to corporate clients at every level of the organization.