Jan 3, 2008

The India Management Consulting Market

According to Management Consultant International

The 2006 market for management consulting, exclusive of IT consulting, is estimated at US$720 million – a relatively small portion of the global market.

The revenue is being generated by a workforce of full-time management consultants estimated at over 20,000. Simple arithmetic yields a somewhat low revenue per professional, so there would seem to be a disconnect between the small revenue figure and the number of consultants. The figures are distorted by the fact that individual consultants and very small firms make up a significant portion of the market. Only a handful of firms employ more than 100 consultants, those being primarily the global consultancies.

And according to this news item looks like global firms are slowly looking at consolidating by acquisition of smaller local consulting firms.

KPMG India, which recently started its human capital practice, plans to acquire a mid-sized specialised HR firm. The firm is scouting for targets with a strong presence in the compensation space, leadership development and HR outsourcing operations.

The firm expects nearly 30% of its future human capital practice revenues will stem from inorganic growth. “We are exploring targets for acquisitions in India and in the Saarc region. An acquisition will help us trigger revenue growth to reach our target of $20 million from this practice by 2009-10,” KPMG India partner and head (human capital practice) Ganesh Shermon told ET.