• Management Consulting Market Intelligence | Analysis, Trends, Forecast, Outlook

Management Consulting Market Description

Business models such as network-based consulting and crowdsourcing are now evolving in management consulting, and are being adopted by players such as Wikistrat, HourlyNerd, and Business Talent Group. North America and Europe are highly mature markets and contribute to about three-fourths of the entire consulting revenue. In addition to this, the supplier capabilities to serve complex client requirements in these regions are also high. The APAC market, on the other hand, has a relatively lesser market share. The demand for consulting services is being driven by factors such as a need for operational efficiency, compliance with regulations, and technological advancements.

The report also provides the regional market outlook in areas such as North America, Europe, the APAC, and the MEA, followed by various opportunities and trends impacting the market. It also gives Porter’s five forces analysis on factors such as supplier power, buyer power, barriers to new entrants, the intensity of rivalry, and the threat of substitutes. The report also discusses various supply trends and insights in management consulting, along with descriptive profiles on suppliers such as Deloitte, Accenture, McKinsey & Company, Inc., and Mercer.

Beroe gathers intelligence through primary sources that include industry experts, researchers, and consultants, as well as current suppliers, producers and distributors. Secondary sources can include business journals, newsletters, magazines, market research data, company sources, and industry associations. Following data collation, analysis, and strategic review, the Final Research Report is published on Beroe LiVE.

Report Coverage

Technological Trends
Supplier Analysis
Supplier Profiling
Best Practices

Management Consulting Market Trend, Analysis & Forecast

Category Intelligence on Management Consulting covers the following

Information relating to market, supply, cost, and pricing analysis
Hard to find data on cost and TCO models, supplier details, and performance benchmarks
Macroeconomic and regional trends impacting cost, supply, and other market dynamics
Category-specific negotiation and sourcing advice

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Executive Summary

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Market Analysis

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Supply Analysis

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Cost & Pricing Analysis

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Best Practices

1. Management Consulting Executive Summary

1.1 Global Management Consulting Market
1.2 Supply Market Outlook
1.3 Brexit Impact

2. Management Consulting Market Analysis

2.1 Market Maturity and Trends
2.2 Drivers and Constraints
2.3 Regional Market Outlook
2.4 Porter’s Analysis
2.5 Mergers and Acquisitions (M&As)

3. Management Consulting Supply Analysis

3.1 Supply Outlook
3.2 Supply Categorization
3.3 Key Suppliers
3.4 Supplier Profiling

4. Management Consulting Cost and Pricing Analysis

4.1 Cost Structure
4.2 Pricing Analysis

5. Management Consulting Procurement Best Practices

5.1 Sourcing Models
5.2 Pricing Models
5.3 Industry Sourcing Adoption
5.4 Service Level Agreements (SLAs) and Key Performance Indicators (KPIs)
5.5 Best Practices
5.6 Cost-saving Opportunities and Negotiation Levers

6.Billing Rate Benchmarking

6.1 Billing Rates
6.2 Factors Affecting Billing Rates
6.3 Billing Rate Methodology

Global Market Outlook on Management Consulting

In 2017, the global management consulting industry was valued around $260 billion, and it is expected to grow at ~4–5 percent to reach $285 billion by 2019
New business models like crowdsourcing is evolving in the industry, which can be disruptive in nature. Wikistrat, HourlyNerd are few companies with such models

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Global Management Consulting Market Maturity

North America and Europe are highly mature markets contributing to three-fourth of the consulting revenue. Supplier capabilities to serve complex client requirements in these regions are high. The APAC consulting market has relatively lesser market share

Global Management Consulting Drivers and Constraints

Need for the operational efficiency, compliance to regulations, and technological advancements are driving the demand for consulting services. On the other hand, freelance consulting industry and in-house consulting groups are posing threat to traditional consulting business model

Drivers

Shift toward Process Improvement and Efficiency

Organizations are constantly trying to reduce costs and increase their efficiency, so that the cost savings can be transferred to the customer as a means to withstand intense competition. This is leading to growth in demand for business process improvisations and consulting related to operational efficiency.

Automation and Digital Media & Marketing

MNCs are actively seeking consulting advice on following technology skill sets: Agile, Artificial Intelligence, and analytics. Both product and service corporations are increasingly investing on user experience design, customer-focused data analytics, and customer engagement strategies, so that corporate buyers have greater demand for digital marketing and transformation consulting.

Regulatory Changes

Regulatory changes, like the US Tax Reform, BREXIT, EU GDPR (General Data Protection Regulation) and others, have led to an increase in demand for consulting across all major service lines. In order to stay compliant to regulations, multinationals will seek high-value advice, thereby fueling the demand for the management and regulations consulting

Constraints

Freelance Consulting Sector:

Pricing and flexibility offered by independent/freelance consultants has led to rapid expansion of freelance consulting segment. For e.g., in the UK, independent consulting industry account for 10 percent of £10 billion consulting market. Freelance consulting sector is hence expected to eat up traditional consulting firm/industry revenues, in the near future

In-house Consulting Groups

Large organizations are setting up in-house consulting groups and recruiting former consultants into management positions, thereby reducing the usage of external consultants.

Miscellaneous:

Few other reasons hampering consulting industry growth, revenues, and clientele are time crunch for nurturing client relationships, consultant’s need to provide more value to clients at the same cost, and unavailability of sufficient time to effectively respond to client RFIs/RFPs

Cost Structure Analysis

Cost structures for management consultants vary in wages and profit margins
Industry players, like Accenture and Deloitte, tend to have high profit margins, due to their ability to leverage capacity in many fields to boost sales and achieve economies of scale
Smaller firms have considerably higher wage costs, as profit margins are slimmer and majority of revenue is paid in wages