2016 was a very good year for India’s management consulting market, with 13.9 per cent growth leading to a total market value of US$2.13billion. This represents a significant increase on last year’s already-strong growth, and it’s a powerful testament to the health and increasing maturity of the Indian market.

These findings are published in a new report from the leading research and strategy firm for the global management consulting industry, Source Global Research. Using the biggest and most sophisticated model of the global consulting industry available today, Source also found that digital transformation now accounts for nearly a quarter of all consulting revenues in India, and that share is likely to increase in the coming years.

B.J. Richards, Senior Editor at Source Global Research, added:

“Digital transformation has been excellent news for India’s consultants, as clients here are often wary of buying advice but are willing to shell out for help with new, unfamiliar digital topics. Digital’s demand for end-to-end solutions is putting a strain on the business models of many consulting firms, however, leading to an increase in partnerships and ecosystem arrangements that can help firms to offer clients a full slate of services without having to bring all necessary capabilities in-house.”

The report also found that every industry was a good industry for India’s management consultants last year, with double-digit growth of consulting revenues found in six of the nine major industries tracked by Source. Financial services—the market’s biggest spender—performed especially well, thanks to digital disruption, a strong private equity market, and rapid growth in the insurance sector.

Deepankar Sanwalka, Partner/India Advisory Leader at PwC, added:

“In financial services, companies are starting to show a strong interest in RPA and automation, and we’re helping them with a number of efficiency efforts using these new technologies.”

All consulting service lines grew last year, with most seeing growth at or near double digits. The report says that technology consulting is not only India’s biggest market but also saw the biggest gains, thanks to demand for digital solutions and a clear preference for buying those services from within the technology service line.

Alastair Cox, an Analyst at Source concluded:

“Consultants are generally positive about prospects through 2018, as they continue to benefit from a growth-minded market, a government keen to encourage investment, and a solid appetite for digitisation initiatives. However, there are concerns that ongoing pressure in the financial services industry could lead to a slashing of consulting budgets and that a new protectionism emerging in Europe and the US could be harmful to India’s critical export and outsourcing industries.”

For more information on Source reports contact alice.noyelle@sourceglobalresearch.com or telephone +44 (0)20 3795 2668/ visit www.sourceglobalresearch.com.
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