Global Consultancy Powerhouse India

 Photo by Andrea Piacquadio: https://www.pexels.com/photo/crop-businessman-giving-contract-to-woman-to-sign-3760067/

India has already earned a formidable global reputation as one of the largest exporters of IT and ITES in the world. As many as 5 million people are employed by global corporations tapping into Indian technology prowess.[1] It is now well-positioned to move up the value chain and offer more skill-intensive services to global corporate and business sectors.

India is in the process of transitioning from the technology back-office headquarters of the world to becoming a hybrid workforce par excellence that fuels the transformative digitization of the premier corporations of the world. The world will come to India for high-value services like consulting, product development and the incubation of business process management use cases.[2]

This is something that the world has sat up and taken notice of as is evident from an Ernst & Young report that says that multinationals are likely to set up what it terms "Global Capability Centres" across all types of industries in tier 2 cities like Kochi, Vadodara, Jaipur and Chandigarh. It is expected that the number of such centres will hit 2400 by 2030 providing 2.6 million new jobs generating more than a whopping $100 billion for the Indian economy.[3] Already, India is emerging as an important global exporter of business services in the realm of taxation, data analytics, cyber security and customer management.

Global consultancy has come of age in India

 

The market for global management consultancy was valued at $316.5 billion in 2021 and is projected to grow to $811.3 billion by 2031, clocking a CAGR of 10.2%. Indian professional and consultancy management services exports reached an impressive $36.95 billion in 2021-22.[4] The industry has seen significant growth both in terms of magnitude and the range of services offered. These include everything from IT consulting and manufacturing consulting to engineering consulting and healthcare consulting. It is not surprising that there are 47000 Indian consulting firms serving the interests of major global businesses across industries. This led to the consulting services industry revenues achieving an overall market growth rate of 15.2% in 2021.[5]

Considerable challenges, however, remain for most Indian consulting firms when it comes to competing with the large consulting firms that dominate the world market. It makes sense for them to accelerate digital transformation, carve out niche expertise areas and zero in on new segments of growth. Overall the Indian consultancy industry can considerably enhance its chances to scale up globally by being innovative, tapping into the right kind of talent and improving and enhancing the level and quality of consulting being provided by them.

 

 

 

 

 

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[1] https://www.ey.com/en_in/india-at-100/how-india-is-emerging-as-the-world-s-technology-and-services-hub

[2] https://www.ey.com/en_in/india-at-100/how-india-is-emerging-as-the-world-s-technology-and-services-hub

[3] https://economictimes.indiatimes.com/industry/services/consultancy-/-audit/global-accounting-firms-set-up-shop-in-indias-smaller-cities/articleshow/101687263.cms?from=mdr

[4] https://www.tpci.in/indiabusinesstrade/blogs/indian-consulting-industry-time-for-a-new-playbook/#:~:text=The%20global%20management%20consulting%20services%20market%20was%20valued%20at%20%24316.5,and%20soaring%20towards%20new%20horizons.

[5] https://www.tpci.in/indiabusinesstrade/blogs/indian-consulting-industry-time-for-a-new-playbook/#:~:text=The%20global%20management%20consulting%20services%20market%20was%20valued%20at%20%24316.5,and%20soaring%20towards%20new%20horizons.