Mega Trends in Consulting Industry
Artificial Intelligence (AI)
Automation and artificial intelligence (AI) are transforming how management consultants analyze data.
Management consultants can undertake tasks like processing and analyzing enormous amounts of data more quickly and efficiently thanks to AI and automation.
Additionally, it can offer precise information about other business aspects, including supply chain management, sales, and operations. For instance, JLL, a real estate-focused American professional services and investment management organization, uses an AI analysis system to significantly reduce workloads.
The real estate consultancy provides advice on client portfolios that can range from 1 to 100,000 properties and once took experts weeks to study.
The data obtained by AI on sales channels, customer journeys, and client behavior can assist consultants in identifying new prospects and creating efficient advertising campaign ideas.
Euan Cameron, the UK AI Leader at PwC, believes that AI has a lot to offer the typically conservative and human-driven management consulting industry.
Expanding Cloud Capabilities
In 2022, the trend toward remote and virtual working will persist, driving up demand for cloud-based services. This has caused a rise in the number of professional service specialists advising clients to use the cloud, which has caused consultancies to boost their capacity for cloud services through investments, acquisitions, and partnerships.
The creation of Accenture’s Cloud First and their intentions to invest $3B over the next three years in developing cloud-first infrastructures are an example of how this is already having an influence on large, international corporations. Deloitte also strengthened its alliance with IBM by introducing a managed analytics solution with AI capabilities to aid organizations in adopting the cloud.
Global Recruitment for Specialist Positions
The need for consulting services is expected to rise as the economy continues to improve and markets reopen; the industry is expected to grow at a CAGR of 8% and reach $1201 billion in revenue by 2025. Organizations are growing their global workforce in response to this demand and providing chances for specialists, particularly those with expertise in computing science. As was already indicated, these major areas will require individuals with expertise in traditional strategic consulting positions as well as cloud computing, digitization, software engineering, change management, and other related fields.
This is already happening, as seen by organizations like PWC, which promised to invest $12 billion and provide 100,000 new jobs worldwide over the next five years. E&Y, PwC, Deloitte, KPMG, and Grant Thornton are following in their footsteps by increasing their hiring of graduates from India with an emphasis on data science, digital analytics, design, compliance services, and cyber security.
Revamped Retention Strategies
Consulting organizations will struggle to hold on to top personnel as a result of the anticipated spike in demand for consultants, and many are, or will be, looking at a variety of retention techniques. Hybrid working arrangements, such as those used during the pandemic, will persist since studies have shown that both employers and employees want ongoing flexibility. Deloitte is expanding their hybrid work style as a result, and PwC has introduced a new flexible working arrangement for its staff.
Consultancies are also looking into additional long-term strategies for employee retention, such as examining retirement and benefits plans. One organization that has adopted this strategy is KPMG, which has announced a decrease in the price of health insurance premiums, an expansion of paid family leave, the addition of “caregiver leave,” and generous changes to their retirement plan.
Compliance with Environmental, Social, and Governance (ESG) measures
Pressure on organizations to lower their carbon footprint has increased as a result of investor and consumer awareness of climate risks. As a result, the $14 billion worldwide ESG advising organizations, which is expected to increase by about 13% annually, is one of the fastest-growing consulting industries.
Professional service organizations like McKinsey and BCG, who counsel governments and organizations on their ESG initiatives, attended the COP26 meeting in 2021. Professional Services organizations are reviewing their own internal ESG practises in addition to providing advice to clients; Deloitte, KPMG, BCG, PwC, EY, Capgemini, and LEK Consulting are just a few examples of the organizations that are dedicated to carbon neutrality practises like lowering business travel emissions and sourcing renewable energy for buildings.