Procurement Outlook
Management Consulting services consists of sales of consulting products, services, and packages by organizations who provide advisory and assistance functions to their clients related to several domains (but not restricted to) like planning, cost analysis, budgeting, marketing strategies, administration, and human resource practices, production and logistics scheduling, etc. The task of management consulting is categorized under outsourced activities by the consumers.
Demand Outlook
The global management consulting market was valued at USD 313 billion in 2020 and it is projected to reach approximately USD 630 billion by 2027. While most of the sectors suffered a decline during the pandemic, management consulting boomed during this period., having grown at a rate of 12.7% from 2020 to 2021. Regionally, North America and Europe are the largest markets for management consulting with most of the renowned consulting firms being headquartered or located in either USA or Western Europe. Together, they occupy over 75% of the global management consulting market. However, a significant number of their employees operate from APAC due to the low cost of employment for such companies. The industry, in general, is expanding with different categories of consulting arising due to the demand from developing technologies. This will help bolster the market during the period of forecast.
From an end-user perspective, financial services and the manufacturing sector are the largest consumers for management consultants. Financial sectors contribute approximately 25% of the overall revenue generated by the management consulting sector. This is followed by the manufacturing sector which helps generate over 15% of the overall revenue.
Cost Drivers
One of the major cost heads that the management consulting industry faces is wage. Since the industry is human-driven, wage accounts for approximately 50% of the cost incurred by a management consulting service provider. To reduce costs, management consulting service providers are employing technologies that help store and retrieve data, aid in data analysis, or help in data visualization. These tools help reduce the time taken by employees to conduct the manual repetitive tasks, which once automated, saves employee hours to focus on work that can otherwise not be mechanized, hence improving overall productivity. In addition to automation, companies are also employing steps for process improvement. Presently, the market is fragmented and has a significant share of management consulting service providers. Therefore, there are price wats and competitive rates available in the market space. As such, companies need to streamline operations to improve profit margins.
Grab your copy, or request for a free sample of the “Management Consulting Market Procurement Intelligence Report, published by Grand View Research” for In-depth details regarding supplier ranking and selection, sourcing, and pricing criteria & strategies.
Add-on Services provided by Grand View Research Pipeline:
Should Cost Analysis
Component wise cost break down for better negotiation for the client, highlights the key cost drivers in the market with future price fluctuation for different materials (e.g.: steel, aluminum, etc.) used in the production process
Rate Benchmarking
Offering cost transparency for different products / services procured by the client. A typical report involves 2-3 case scenarios helping clients to select the best suited engagement with the supplier
Salary Benchmarking
Determining and forecasting salaries for specific skill set labor to make decision on outsourcing vs in-house.
Supplier Newsletter
A typical newsletter study by capturing latest information for specific suppliers related to: M&As, technological innovations, expansion, litigations, bankruptcy etc.
Brief about Pipeline by Grand View Research:
A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain which helps in efficient procurement decisions.
Our services include (not limited to):
- Market Intelligence involving – market size and forecast, growth factors, and driving trends
- Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
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- pe, and identifies suppliers who are dominating, emerging, lounging, and specializing
- Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions
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