Report on Consultancy services

SUBMITTED BY Nupur Roy Soni Das Manoj Agarwal Vijit Gosh Vishnu G Section: C Group: 3 SUBMITTED TO Prof. Ravi Kishore

Industry Overview
Consulting indicates both the industry of, and the practice of, helping organizations improve their performance, primarily through the analysis of existing business problems and development of plans for improvement. Organizations hire the services of management consultants for a number of reasons, including gaining external (and presumably objective) advice and access to the consultants' specialized expertise. Because of their exposure to and relationships with numerous organizations, consulting firms are also said to be aware of industry best practices although the transferability of such practices from one organization to another may be problematic depending on the situation under consideration

. Consultancies may also provide organizational change management assistance, development of coaching skills, technology implementation, strategy development, or operational improvement services. Management consultants generally bring their own, proprietary methodologies or frameworks to guide the identification of problems, and to serve as the basis for recommendations for more effective or efficient ways of performing business tasks. In general, various approaches to consulting can be thought of as lying somewhere along a continuum, with an 'expert' or prescriptive approach at one end, and a facilitative approach at

the other. In the expert approach, the consultant takes the role of expert, and provides expert advice or assistance to the client, with, compared to the facilitative approach, less input from, and fewer collaborations with, the client(s). With a facilitative approach, the consultant focuses less on specific or technical expert knowledge, and more on the process of consultation itself. Because of this focus on process, a facilitative approach is also often referred to as 'process consulting,' with Edgar Schein being considered the most well-known practitioner. The consulting firms listed above are closer toward the expert approach of this continuum.

Many consulting firms are organized in a matrix structure, where one 'axis' describes a business function or type of consulting: for example, strategy, operations, technology, executive leadership, process improvement, talent management, sales, etc. The second axis is an industry focus: for example, oil and gas, retail, automotive. Together, these form a matrix, with consultants occupying one or more 'cells' in the matrix. For example, one consultant may specialize in operations for the retail industry, and another may focus on process improvement in the downstream oil and gas industry.

Management consulting refers generally to the provision of business consulting services, but there are numerous specializations, such as information technology consulting , human resource consulting , virtual management, insulting and others, many of which overlap, and most of which are offered by the large diversified consultancies listed below. So-called "boutique" consultancies, however, are smaller organizations specializing in one or a few of such specializations.

Companies and organizations hire consultants to strategize solutions to business, organizational, or industry specific problems. The value in hiring a consultant is a fresh perspective, objectivity, and/or a specific knowledge base or expertise. The Consulting Industry can be divided into the following areas: Management Consulting: Focus is on how a company or organization works to achieve its stated goals. This can include working on strategy, operations, and information technology. Strategy Consulting: Focus is on identifying the direction, goals, and growth of a company or organization within a specific industry. Information Technology (IT) Consulting: Focus is on using technology to help an organization become more efficient and achieve its goals. Industry Specific Consulting: Focus is on a specific industry and can include strategy, management, IT, scientific or technical consulting.

Market Size

The total market size for the Management Consulting Services industry includes all companies, both public and private. In addition to total revenue, the table contains details on employees, companies, and average firm size. Metrics Market Size (Total Industry Sales) Total Firms Total Locations (Headquarters and Branches) Total Employees Average Revenue Per Firm Average Employees Per Firm Source: Analysis of US Census data, updated June 8 2010 2004 2005 2006 2007 2008 2009

Number of Players in the Industry

Cognizant Technology Solutions

Cognizant is an American multinational IT services and consulting corporation headquartered in Teaneck, New Jersey, United States. Cognizant provides a range of information technology consulting and business processing outsourcing (BPO) services, including business and technology consulting, complex systems integration, application development and maintenance, business process outsourcing, IT infrastructure services, analytics, business intelligence, data warehousing, CRM and social CRM, supply chain management, engineering management solutions, ERP, R&D outsourcing, and testing solutions

Accenture

Accenture plc is a global management consulting, technology consulting and technology outsourcing company. Previously incorporated in Bermuda, since 1 September 2009 the company has been incorporated in Ireland with its global headquarters located in Chicago. It is said to be the largest consulting firm in the world, as well as being a global player within the technology consulting industry

Deloitte Consulting

Deloitte Touche Tohmatsu Limited (also branded as Deloitte) is one of the largest professional services organizations in the world and one of the Big Four auditors, along with PricewaterhouseCoopers, Ernst & Young, and KPMG. Deloitte Assists clients by providing services in the areas of enterprise applications, technology integration, strategy & operations, human capital, and short-term outsourcing

Capgemini

Capgemini is a major French company, one of the world's largest IT services, transformation and management consulting, outsourcing and professional services companies with a staff of over 100,000 operating in 36 countries

HCL Technologies

HCL Technologies (HCLT) is a global IT Services company headquartered in Noida, India. It is the IT services arm of HCL, a US$5 billion global Technology and IT Enterprise. HCL Technologies, along with its subsidiaries, had consolidated revenues of US$2.6 billion, as on 31st March 2010, and employed more than 60,000 people.

BearingPoint

BearingPoint is an independent management and technology consulting firm. Following a post-bankruptcy management buyout in August 2009, BearingPoint has been operated by its European management team and is organized as a partnership. BearingPoint is a European-based company, but operates with a global reach.

HP Enterprise Services

HP Enterprise Services, is a global business and technology services company, previously known as Electronic Data Systems (EDS), headquartered in Plano, Texas that defined the outsourcing business when it was established in 1962 by H. Ross Perot. General Motors acquired the company in 1984, spun it off again as an independent company in 1996, and became an EDs client.

Computer Sciences Corporation

CSC is an information technology (IT) and business Services Company headquartered in Falls Church Virginia, USA. CSC predominantly provides IT personnel staffing services in the following areas: systems integration and professional services; enterprise application development and management; application software for the financial services industry; business process outsourcing; managed hosting services; and application and IT infrastructure outsourcing.

Tata Consultancy Services

Tata Consultancy Services (TCS) is a Software services consulting company headquartered in Mumbai, India. TCS is the largest provider of information technology and business process outsourcing services in Asia

Siemens IT Solutions and Services

Siemens IT Solutions and Services is a service provider which is part of Siemens AG headquarters. Siemens IT Solutions and Services provides information technology solutions and services for the complete IT service chain from consulting to systems integration and IT infrastructure management right through to industry-specific IT solutions

Market Share

In the quest for market share, Accenture continues to lead the field generating 14.2% of the total fee income of all firms. IBM's consulting business follows, with 10.9%. KPMG's fee income provided a market share position of 4.1%, just above PA Consulting Group's 3.9%. This is followed by Ernst & Young with 3.3% of the market. What is interesting about market share positions is that despite the fact that the five largest firms each had higher fee incomes last year; they all finished the year with slightly lower market share positions. In financial year 2005, the five largest firms together had a 45.8% share of total fee income. In financial year 2006, this dropped to 43.4%. What happened was that that Ernst & Young and KPMG took market share away from most, but not all, of the larger firms.

16 14 12 10 8 6 4 2 0

Market Share

Despite this slight upset, the dominance of the large firms can be seen in the simple statistic that the 15 largest firms together earned 4.6bn last year, or just over three quarters of the total fee income of all the firms on our list. Their combined share of the market dropped by less than one percentage point

The latest annual survey of top management consulting firms shows a rise in consultancy fee income to a record 5.9bn the web service "vault.com" prepares a list of the top 50 consulting companies to work for each year. The ranking considers company culture, practice strength, prestige and compensation (6 percent), among a few other options. The top 10 for 2010 are:
1. Bain & Company (8.492) 2. Boston Consulting Group (8.176) 3. McKinsey & Company (8.159) 4. Analysis Group (7.251) 5. The Cambridge Group (7.178) 6. Deloitte Consulting LLP (7.162) 7. Oliver Wyman (7.123) 8. A.T. Kearney (7.089) 9. Triage Consulting Group (7.024) 10. Censeo Consulting Group (6.903)

The Top 20 UK management consultancy firms ranked by fee income for Financial year 2006 is

Accenture IBM Business Consulting Services Deloitte Xansa plc Capgemini PricewaterhouseCoopers LogicaCMG KPMG LLP PA Consulting Group Ernst & Young LLP McKinsey & Co Fujitsu Detica Management Consulting Group plc Atos Consulting CSC Computer Sciences Corp Bain & Company Towers Perrin Ove Arup & Partners International Boston Consulting Group

Product/Service Mix

Consulting is providing advice in a particular area of expertise. This is not the same as customer service. Specific types of consulting services include:

Biotechnology consulting Consulting software engineer Environmental consulting Faculty consulting Franchise consulting Human resource consulting Information technology consulting Management consulting Performance consulting Political consulting Supply chain consulting Trial consulting Business involving aspects of both a tangible (physical) good and intangible service, and where typically the quality of service is more important than the physical product. For example, lodging, programming, or training. Almost every product comprises of some degree of service-good mix. Also called service-product mix.

Latest Developments in Consulting Services

Eco-Friendly

Businesses and individuals are striving to be more conscious when it comes to the environment. In many cases, increased regulations and legislation for industry are driving the demand for eco-compliance. The result is that businesses are hiring consultants to review internal policies and procedures, and to assist in identifying and meeting regulation requirements. Having green expertise can lead to more green for your bottom-line.

Life Management

Baby Boomers, the market of consumers aged 55 years and older, have long been a target market for different services and products. There are millions of people that fall into this age demographic, making for a nice-sized base of customers. And, this market of consumers generally has a substantial amount of disposable income and isnt opposed to spending it. Life Manager Consultants have keyed into these factors, and are offering their services to help

Baby Boomers enjoy more life experiences. In other words, consultants assist in identifying and pursuing personal life goals. It's a growing market for consultants

3. E-commerce

As the growth of the Internet has exploded, so have the number of businesses that want to expand online. It's become common to see a range of businesses make the move, including traditional brick-and-mortar retail businesses that start selling products online, or a smaller business that begins listing additional inventory on eBay. If you have experience selling products and services online, there's a great demand for consulting services. Companies especially need help in learning how to sell on eBay and how to set up and a manage a full ecommerce site with shopping carts and payment systems.

4. IT Security

Are you an Internet security guru? Do you know all the latest software for protecting against computer viruses and phishing scams? If so, it's time to put that knowledge to use consulting

with small businesses and individuals in protecting their IT networks. Experts in securing wireless networks are in particularly high demand now

5. SMB Expertise

Small and mid-size businesses (SMBs) are a highly sought after customer base for many Fortune 500 and Fortune 1000 companies - and for good reason. The SMB market is one of the fastest growing and has been targeted as a lucrative market for a variety of products and industries. However, many of the larger companies wanting to penetrate the SMB space know very little about small businesses and how to market to them. For a consultant with SMB expertise, offering your SMB know-how to Fortune 500 firms could prove lucrative for your business