The increased complexity of business and the advancement of technology have called for the adoption of risk management solutions. This is where management consulting services (MCS) come in; these services help organizations improve overall performance by analyzing problems and proposing developmental plans to enhance operational performance. This is why management consulting services are in decent demand across the globe. According to analysts at Technavio, the global market for management consulting services will grow at a CAGR of 4% by 2020.
When seen from geographical point of view, APAC is set to witness the highest growth rate by 2020. While North America held the largest share of the market in 2015, the presence of top consulting firms, along with maturity in terms of service offerings and level of innovation, will ultimately reduce its growth rate.
How will APAC drive the global MCS market?
The one major change that industries in APAC are experiencing is the growing number of mergers and acquisitions (M&As) in the region. Regardless of the specific business vertical, major organizations are aggressively working towards expanding their operations, and M&As are a very important means of doing so. When mergers and acquisitions occur, organizations often face the challenge of integrating technical and business processes with their operations. This is when MCS providers can be of assistance, in terms of both increasing efficiency and reducing cost.
Source: Technavio
As nearly all of the APAC economies are growing substantially, the demand for new products and services has also increased. This has, in turn, created opportunities for MCS providers to improve their workforce performance and reach out to several business verticals by building strategies related to sales and marketing and increasing customer satisfaction. Additionally, many organizations look for hidden patterns and make data-driven decisions, which is why their dependency on management consulting services providers has increased over the past few years. The fact that the use of Big Data analytics in the MCS industry will reach 59% by 2017 reflects the importance of data-driven decisions in today’s business scenario.
Lack of in-house expertise and automation of technology are two other factors that account for the growing demand for MCS providers in the APAC region. By integrating consulting expertise with automation techniques and predictive analysis solutions, consulting service providers formulate improvement plans in less time and for less money. This becomes all the more critical as more and more organizations today are looking for cost-effective solutions that require less investment in manpower.
Lastly, APAC is experiencing a high rate of strategic partnerships between market research firms and management consulting firms. For example: consulting firms such as BCG and McKinsey are engaging with market research firms such as Gartner and Forrester to reduce the TATs associated with gathering data and providing actionable insights by spending more time on formulating strategies.
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