Complexity of business operations and demand for specialized expertise aid management consulting’s growth

Management Consulting Category - Procurement Intelligence

The management consulting category is expected to grow at a CAGR of 7.8% from 2023 to 2030. The increase in the adoption of consulting services to reduce operational costs and improve business efficiency is driving the category’s growth of the category. Additionally, the globalization of management consulting services, widespread access to high-speed internet, and the process automation of processes are further fueling the expansion of this category.

In the evolving digital landscape, consulting firms play a vital role in guiding organizations through transformative processes. They provide expertise in implementing digital technologies and data analytics, managing data, and facilitating change, ensuring enhanced efficiency and reduced costs. As a result, most consulting firms are integrating technology and data analytics more extensively into their services, aiding clients in staying ahead of market trends. Machine Learning (ML) models are typically integrated into APIs, which facilitates their easy integration into applications. By effectively and precisely cleaning raw data, mining fresh data, or synthesizing millions of records, consultants can provide customized services. Moreover, firms are embracing innovative methods to deliver their services, employing technologies like virtual and augmented reality for visualizing complex ideas, and utilizing cloud-based platforms for real-time collaboration with clients.

Companies in this category invest significantly in training employees to be tech-savvy, aiding clients in navigating technology transitions. Companies are also collaborating with tech companies to implement technologies such as ChatGPT into their process. For instance, in 2023 companies such as Boston Consulting Group, Accenture, and Bain & Company partnered with tech companies to make their processes technology-driven.

In a volatile economic environment, the demand for real-time consumer insights is crucial for making data-driven decisions. Due to shifts in consumer behaviors and expectations triggered by global events and emerging technologies, businesses must swiftly adapt their strategies. Consequently, management consultants need to concentrate on swiftly gathering and analyzing data from digital platforms like social media and eCommerce websites to gain a precise understanding of customer behavior. 

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Management Consulting Sourcing Intelligence Highlights

• In the consulting industry, skilled professionals are the primary suppliers. Their expertise is the core product offered by firms. The bargaining power of these professionals can be high, especially if they possess specialized or rare skills. Consulting firms must attract and retain top talent to maintain their competitive edge.

• The category is moderately consolidated as tier 1 and tier 2 companies account for almost 60% of the market share. Companies are continuously focusing on providing specialized services to offer more relevant and tailored services to their clients.

• Consultant salaries, office rent/utilities, consultant training, and recruitment, IT & technology costs, legal costs, and othersare some of the costs incurred in providing services.

• Starting a consulting business can be a fulfilling and lucrative venture, but it requires an investment of resources and time. Careful consideration of the various costs associated with opening the firm can help in making informed decisions about the budget. 

Management Consulting Procurement Intelligence Report Coverage

Grand View Research will cover the following aspects in the report:

• Category Intelligence along with emerging technology and regulatory landscape

• Market estimates and forecasts from 2022 to 2030

• Growth opportunities, trends, and driver analysis

• Supply chain analysis, supplier analysis with supplier ranking and positioning matrix, supplier’s recent developments

• Porter’s 5 forces

• Pricing and cost analysis, price trends, commodity price forecasting, cost structures, pricing model analysis, supply and demand analysis

• Engagement and operating models, KPI, and SLA elements

• LCC/BCC analysis and negotiation strategies

• Peer benchmarking and product analysis

• Market report in PDF, Excel, and PPT and online dashboard versions 

Cost Intelligence Highlights

Grand View Research has identified the following key cost components for the Management Consulting category:

• Consultant salaries

• Office rent/utilities

• Consultant training, and recruitment

• IT & technology costs

• legal costs

• Others

  • Travel Expenses

  • Marketing and Advertising

  • Insurance

Consultant salaries, office rent/utilities, consultant training & recruitment, and IT costsform the largest cost components of the management consulting category.

List of Key Suppliers in the Management Consulting Category

• Boston Consulting Group

• Bain & Company

• McKinsey & Company

• KPMG

• PWC

• Alvarez & Marsal

• Oliver Wyman

• A.T. Kearney

• L.E.K. Consulting

• Accenture