New Delhi: Rising opportunities and growing consultancy spectrum as a result of high demand, consulting industry in India is poised to grow at CAGR of 28%-30% to carry forward its size to over Rs 17,000 crores as against current size of nearly Rs13,000 crores, according to a paper on ‘Opportunities for Consultancy’, brought out by Assocham.
Consultancy opportunities for domestic project managers would enhance engagements and occupation, numbering over 2.2 lakhs in the next three years in nearly 8500 to 9000 consultancy firms in the field of projects management including turnkey projects, engineering, designing, financing & auditing consultancy, besides consultancies in medical services, travel & hospitality.
Size of the consultancy market
Currently, approximately 6000 consultancy firms are in operations in major cities like Delhi, Bangalore, Hyderabad, Chennai, Cochin, Ahemdabad, Mumbai, Pune, Chandigarh and even Dehradun. Interestingly, most of domestic consultancy organization are directly and indirectly supported by nearly 2000 R&D institutions and laboratories attached to them at much cheaper cost, which certainly is not the case in developed economies where access to R& D centres to consultancy firms is denied at reasonable professional fees.
* Kolkata has recently emerged as a lead centre for extension of consultancy services
* Increasing networking skills will lead to higher levels of standardization, giving a boost to consultancies
* Countries where domestic consultancy firms have started getting acknowledged comprise economies of scale such as USA, UK, Japan, China, Saudi Arabia and the entire Gulf countries
* Indian consultancy is witnessing demand growth in view of their competitive edge over rivals in Asean countries that include Italy, Germany and France
* Clients for engineering design offshore consultancy services include large international companies operating in engineering services, automobiles and manufacturing, IT and software that directly outsource their design and development requirements
* Growth potential exists for domestic consulting services which seem high in South East Asian and East African countries as these have been pursuing fast track development plans across diverse sectors
* Major strengths of Indian consulting organizations are professional competence, low cost structure, diverse capabilities, high adaptability and quick learning capability of Indian consultants and their weaknesses are low quality assurance and little local presence overseas due to lack of intensified market intelligence
* Indian consultancy capabilities are strong in civil engineering and construction, telecommunication, power, metallurgy, chemical, petrochemicals and computer software
* Services provided include feasibility and market studies, erection and commissioning of plant and machinery, system designing etc.
* Future prospects particularly in project consultancy on turnkey basis are more exciting as India is one of the largest economies in the world with its strategic locations giving access to vast domestic and South Asian markets
* Presence of skilled manpower and professional managers is available at a competitive cost as India’s manufacturing sectors provide ample opportunity for assimilation of consultancy in numerous sectors
* Indian consultancy firms are being wooed by Vietnam (textile and garments, energy, geology & mining, agriculture, rural development, transportation and tourism); Indonesia, Uganda and Ethiopia (oil & gas, education, infrastructure, IT enabled services, mining, water management, telecommunications, construction & health, information technology, agriculture & petrochemicals, transportation, besides power)