Business industry is continuously expanding with new firms entering the market and numerous new products and services launched. Business is a ball game that requires expertise and a heart to take risks and deal with market uncertainties and come with counter strategies.
With growing competition there is a dire need to stay ahead in the market and continuously engage in developing the product and services so that consumers stay interested. As it is not possible to device every plan on your own and take every small to big decisions on your own, the need for business consultants have come up.
Johan Aurik is the chairman of one of the biggest consultant firm in world- AT Kearney. Functioning in 40 countries the chairperson of AT Kearney came to visit India in the year 2016 and extensively talked about how the consulting market is taking over and how the Big Four is to be dealt with and also about the ‘new mediocrity’.
Business consultants have grown to be huge in recent times and play an important role in making the businesses flourish, at the same time making its own place in the market. Attracting big firms and generating huge profit, business consultants are the new sources of income for many of the entrepreneurs now.
When Johan Aurik came to India, there were several questions that were asked.
When asked about AT Kearney India he said that Indian economy is growing and this has made the demand of strategic planning quite high and this is where the business consultants are doing well.
He was also asked about the attrition problem in consulting business. He said that in consulting business there is an attrition rate of about 20% per year. In India there is same rate of attrition. He believes in India business consultants have been very well accepted.
When confronted with the question of growth of AT Kearney in India he said that if we compare the growth to revenue and number of partners then we shall see that our business has been increasing and in last year there has been growth in number of partners from stagnant phase of 12 partners to 20 partners at present.
Competition in the consultancy business is quite with so many firms coming up. The companies are having in house consultant team as well as going out to consulting firms. When asked about the growing competition he said that no matter how many in house consultant teams are made, the companies will need a consulting agency for larger strategic transformation. In this regard, he also said that it is vital that the consulting companies continually bring improvements in products that they offer. If they fail to develop their product then they might not be able to survive in the market.
He was positive about advent of big data, AI and other IT developments like that. He said that these things are going to affect consulting in a positive manner and use of these will help in offering better services to consumers or clients.
As far as low mediocrity is concerned he said that there is nothing like that. Every country has its own political social and economic set up which is reflected on its economy. China is in a good shape while Latin America and Russia are not in a very good shape and USA is prone to presidential elections. There are a lot of uncertainties and lot of cash while the projects to invest on are very small in number.
These are the major points that were highlighted by Johan Aurik. Hope it will help you to understand the business consultants better and the related market risks and scenario.