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 undergoing a significant transformation, transitioning from being known solely as the technology back-office headquarters of the world to evolving into a hybrid workforce powerhouse. This transition positions India as a leading force in fueling the transformative digitization efforts of premier corporations worldwide. As this shift continues, India is poised to become a hub for high-value services such as consulting, product development, and the incubation of business process management use cases, making it an attractive destination for global businesses seeking innovation and expertise.[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]
India is already solidifying its position as a significant global exporter of business services, particularly in the domains of taxation, data analytics, cybersecurity, 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 47000 Indian consulting firms are 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]
Despite making strides, substantial challenges continue to confront many Indian consulting firms as they endeavor to vie with the formidable presence of global consulting giants. In order to surmount these hurdles and assert their competitive edge, it is imprative for Indian firms to expedite their digital transformation endeavors, carve out specialized expertise in niche domains, and strategically target emerging sectors for growth opportunities. By embracing a culture of innovation, harnessing top-tier talent, and elevating the overall standard and quality of their consulting services, the Indian consultancy industry can effectively bolster its capacity for global scalability and success.
References
[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.
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