Management consulting is one of those unique industries that have changed the world. Individuals have worked as consultants on some of the world’s largest technological advances and this has led to some of history’s greatest innovations. It was only a matter of time before management consulting became its own industry, which it did in 1948. Since then, the industry has made strides in automation and big data usage, but it still relies on individuals for the most part. We will see, however, if the industry starts to rely on AI more in the next few years.
Over the last few years, as our global economic situation has become increasingly unstable, businesses have looked to consultants more than ever before. And with great need comes great reward – by 2022 the global consulting sector is expected to be worth more than US$30 billion. The need for consultants is just one of many changes that the industry will have to deal with over the next five years, however.
Management Consulting is the application of business analysis and improvement techniques to different enterprises, with the goal of providing valuable insight via recommendation or software. Management consulting uses specialized skills in areas such as marketing research and strategic planning to assist organizations in achieving success by improving their management. While the recession caused a slight downturn in the industry in 2020, the worldwide recession is expected to result in a 14% downturn in the industry in 2020.
Management consulting has long been considered a growth industry, but recent trends have caused it to divide into two main markets – low-cost, commoditized offerings and specialized programs. These shifts are driving a transformation in the internal infrastructure of consultancy companies, forcing them to address issues such as diverse business models and brand architecture.
1) Quantifiable Results
While it is expected that the consulting industry trends will take a downturn in 2021, there are a number of reasons why businesses will still be turning to consultants. Value-based performance has been on the rise for some time and even more so since the economic downturn that occurred in 2018. Since then, clients have been looking at ways to find value rather than simply paying to diagnose problems or strategize their future growth. Consultant firms will now be expected to deliver quantifiable results in a cost-effective way. This means that consultants must create solutions that align with operational realities and be carefully allocated towards what is most valued by the client.
2) Strategic Partnerships
Consulting and advisory firm demand will remain strong in 2021, although in the face of increasingly-challenging macroeconomic conditions. In 2020, the rise of empowered consumers and sophisticated consumers will have increased consumer demand for bespoke, value-added service offerings from consultancies. By setting themselves apart from competitors with a more holistic approach to client engagement and offering more flexible terms than traditional services firms, leading consultancies will go beyond providing analysis and advice –they will offer their clients large-scale data and insight solutions that allow them to optimize their business strategy and operating model.
3) Remote Consulting
More and more businesses are opting to engage consultants remotely that means that you need to be prepared to do the same. As a consultant, this is likely something you are already used to, with many spending 80% of your time away from home. However, working with businesses who use remote working will require a fresh mindset and as a result, virtual consulting platforms will become more widespread in 2021. Australian consulting firm Bendelta have launched their virtual consultancy platform Reach – which is expected to deliver the same outcomes as physical consulting and training. Recruitment will also follow suit and most interviews and internships will be conducted virtually in 2021.
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