Академический Документы
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23-11-2010
Seminar On
“Consulting Services”
PRESENTED BY
Prithwish S Kotian
Ranjani S K
Sachin T S
Sandeepa N
Santhosh M B
I SEM MBA
(2010-11)
UNDER THE GUIDANCE OF
Mr. Rakesh D’souza
LECTURER
PG DEPT. OF MANAGEMENT STUDIES
PESITM
Sagar Road, NH 206
SHIVAMOGGA – 577104
(KARNATAKA)
Contents
1. Introduction to Consulting Industry
2. History & Future
3. Types of Consulting
4. HR Consulting
5. Trends, Profiles & Forecasts
6. Global Scenario
7. Current HR Services & Recruitment Scenario in India
8. International Recruiting by India
9. Performance of HR Consulting
10. Models of Consultation
11. Major Players
12. 65 Consulting Jobs
13. SWOT Analysis
14. Conclusion
Introduction
Consulting is present since the human beings started giving advice. But, when
people started giving advices for remuneration, they started considering it as
service business. The evolution of the consulting services have shown significant
change in providing services. Today the consulting services is treated as a separate
industry. The consulting services have been separated by their service fields. the
most consulted services are Management, HR, Strategic, IT, Marketing etc.
Strategy consultants are common in upper management in many industries. There are also independent
consultants who act as interim executives with decision-making power under corporate policies or statutes.
They may sit on specially constituted boards or committees.
THE RAPID EVOLUTION OF THE CONSULTING INDUSTRY
Advisors have existed since the beginning of time--often providing advice based on
subjective opinions absent of any structure, facts, expertise or relevant experience.
Unfortunately there continue to be many people who are quite capable of expressing an
opinion on something for which they know nothing about.
But in the later phase,
More legitimately, academics, government leaders, and senior business executives have
also been consulted for generations drawing upon the expertise and personal experience
that they have amassed throughout their long careers.
However, it was not until the late 1800s when the rational, logically structured problem
solving approaches began to be formally applied to management challenges.
Arthur D. Little founded his consulting engineer business in 1886 giving management approach
Frederick W. Taylor established his consulting practice in 1893.
Edwin Booz established his firm in 1914.
McKinsey established his firm in 1926.
John PA Consulting, founded in the UK in 1943
These early firms Arthur D. Little, Booz & Company, and McKinsey & Company remain
with us today.
Consulting Industry Overview
1. Management Consulting
2. Strategy Consulting
3. IT Consulting
4. Corporate Finance & Financial Advisory
5. Consultant Engineers
6. Marketing Consulting
7. Consulting in Politics and the Public Sector
8. Real Estate Consulting
9. Human Resources Consulting
Management Consulting:
Management consultants are business consultants that specialized in providing
companies and start-ups with expertise in setup and development, operations, finance,
economics, market analysis, marketing, and branding. They usually have a
background in business administration, business finance, and personnel management.
Strategy Consulting
Strategy consulting is one of the core components of management consulting services.
In small- to mid-size scenarios, the strategy consultant and the management consultant will
often be one in the same. In large business scenarios, the management consultation team
will often include a specialized strategy consultant.
The strategy consultant's job is to find solutions to problems for which there is no
textbook answer. The strategy consultant specializes in being an innovator, which is a highly
sought after skill set in today's complex business environments.
IT Consulting
Corporate Finance Consulting supports start-ups, small businesses and public traded
companies to achieve the perfect financing structure with the right mixture of debt and
equity.
In the task of financial questions financial advice is almost indispensable. Financial
Consulting assists to make the right decisions.
Consulting Engineering
Marketing Consulting assists firms to sell their products and services. Marketing
Consultants have a deep knowledge and a solid experience in how to plan the optimal
marketing mix.
A well developed marketing strategy is the key to, succeed against competitors. The
right marketing program quantifiably leverages new product success rates, customer
satisfaction and retention, brand and customer equity.
Politics and Public Sector Consulting
Consulting in Politics and the Public sector became an important market for Consulting
services in the recent years. In order to transform public services approximately £20bn were
spend for consulting services in the years between 1997 and 2006 according to
timesonline.co.uk.
Real Estate Consulting
Real Estate Consulting offers a wide range of services. Real Estate Consultants assist
acquiring and selling property. They also help to develop Real Estate construction projects
e.g. with specialized tenancy solutions. Optimal management policies for corporate real
estate are also provided.
HR Consulting
HR consulting or Human Resources consulting is one of the primary components of
management consulting but it has branched out into its own specialization due to the needs of
businesses becoming more complex and specialized.
The core fields around which most HR firms base their consulting methodologies are
human capital, health and benefits, merger and acquisitions, communication, retirement, and
outsourcing. Some business will use a firm to provide all of their HR services while others
will use them as needed.
Human resource consulting is a $18.4 billion industry that has emerged from
management consulting, as clients' needs have become more complex and specialized,
widening the gap between HR needs and work force capabilities, and thus accentuating the
ability of HR management consulting firms to fill this gap.
But, there is a great deal of overlap between in the services provided by firms
specializing in HR consulting, IT consulting, and management consulting.
HR Consulting Marketplace: Key Trends, Profiles and Forecasts
Benefits Consulting: Retirement and actuarial consulting with respect to defined benefit, hybrid, and
defined contribution plans as well as health and welfare or healthcare consulting on healthcare coverage
HR Technology Consulting: Advisory on the structure and management of the HR function and the
design of service delivery in an effective and cost efficient manner.
HRO and Software Advisory: Consulting on the selection of ERP systems providers and best-of-
breed software providers as well as on HR business intelligence and analytics software
Talent Management Consulting: Advisory on the overall people strategy and the use of
management of human capital assets to reach an organization’s business objectives.
New Key Trend:
Many human resources consulting firms have developed proprietary software and
support tools. These can assist companies on a long-term basis with managing their
human resource functions. Companies should educate themselves on what types of tools
are available, and how those tools can enhance their human resource operations.
Traditional strategy & HR consulting providers face threats
At a time when the majority of companies are under increasing pressure to reduce costs due to the
weakened economy, HR departments expect to maintain their current strategies toward outsourcing HR
services, according to Hewitt's HR Outsourcing Trends and Insights 2009 survey.
Hewitt recently surveyed 104 companies on how they are using outsourcing to improve the delivery
of their benefit and HR programs
From the survey results, it's clear that outsourcing does play an integral role in HR's ability to
deliver programs to employees.
82 percent of companies that have measured their outsourcing programs said they realized the
benefits they had hoped to gain by outsourcing.
There are about 950 firms globally that provide HR-related consulting services in such areas as
recruitment, compensation, retention and benefits.
A study identified the top five revenue producing HR consultancies as Mercer ($2.4 billion),
Deloitte ($1.6 billion), Watson Wyatt ($1.4 billion), Aon ($1.3 billion), PricewaterhouseCoopers ($1.1
billion) Other major players include Towers Watson, Hewitt Associates, Hay Group and Buck
Consultants, etc.
Current HR Services & Recruitment Scenario in India
Services:
Actuarial: Control pension benefits
Retirement: Maximize your return with a comprehensive retirement strategy
Compensation: Giving best solution in compensation strategy
Talent and Performance: Maintaining talent management & performance records
Government: Providing HR services to the Govt.
Global Risk: Solution to face the Global risk
HR Outsourcing: Providing outsourcing services to help the organization to concentrate on business
objectives.
Recruitment:
Recession is just a momentary situation not a long term affair. Last year saw the worse of economy all over the
world. Lay offs, price-cutting, losing projects and many more. India, the country which renders service to almost all
great nations in the world was affected too. Big IT giants and banks losing money started showing pink slips to its
even experienced employees. We saw the present and foresee the future even worse.
The best Manpower consultants in India who have thrived worked overtime to provide the corporate and
industries with the best of the man power at a prices that could keep them profitable in recession. They have lowered
their consultation charges, changed the interviewing process and brought in many other innovative concepts to make it
work and they have succeeded to an appreciable extent.
Many of the job consultants have placed potential candidates in the marketing and sales sector which promises
an ever growing career prospect even at this time. The pharmaceutical and medical sector too provides great career
prospects ahead. With more discoveries of drugs, medical technologies, clinical research is booming in India. Potential
candidates from various fields of science are hired for specific purposes.
Recruiting Manpower Globally by Indian Manpower Recruiters:
India is one of the developing countries economically and a talent-rich country. Today
India has emerged as a hotbed in offering vibrant young talented professionals to overseas
companies across the globe from various fields. India is one of the major recruitment market in
the World for developed countries.
Indian manpower recruiters are recruiting no’s of Indian professionals across the globe. Thousands
of overseas work permit visa are issued to Indian professionals every year. Applicants who apply
overseas work permit visa are still increasing every year.
Top recruiters will aim and focus on how to project and place a good candidate to employers who
desperately need to fill the positions. This extended relationship shows that the recruiter have given the
quality series to the client.
What Do Human Resource Consultants Do Today?
Human resource consultants typically have many duties. Generally, human resource consultants are
outside experts who provide direction to the personnel or human resources (HR) department of an
organization.
Some human resource consultants are hired to handle:
•Recruitment and staffing
•Conduct performance appraisals
•Determine compensation and benefits for employees
•Employee training and development
•Ensure employee safety and health
•Assume responsibility for human resource research.
A company that is facing high costs and the need to lay-off employees may also hire a human
resource consultant to provide help. Human resource consultants may also assist with setting the
guidelines for fair and equitable, legal and ethical payment of employees.
What Is Human Resources Outsourcing?
Human resources outsourcing is a service that companies can opt to pay for instead of
hiring a full-time person, or multiple full-time positions, for the same purposes. For
companies that do not need a full-time person for certain aspects of human resources, there
may be a cost savings when compared to employing additional people. All or part of the
human resources function can be outsourced, including financial matters, benefits, and even
recruitment and hiring.
Performance of the HR Consulting Industry
Company HR Consulting HR Consulting No. of HR Consulting No. of full time HR
Revenue(present) Revenue(previous) Clients Cos. Consultants
1. Mercer HR $2.4 billion $2.2 billion Not available 9000
Consulting
2. Deloitte Consulting $1.587 billion $1.483 billion NA 8091
3. Watson Wyatt $1.39 billion $968 million NA 6300
Worldwide
4. Aon Consulting $1.28 billion $1.25 million NA 6500
5. Price Water House $1.1 billion $980 million 17000 5350
Coopers
6. Towers Perrin $1.027 billion $930 million NA 2069
7. Hewitt Associates $861.8 million $813.7 million 2300 NA
8. Hay Group $389 million $340 million 7000 1660
9. Segal Co. $180.2 million $180.2 million 2600 662
There are more than1000 firms globally that provide HR-related consulting services in such
areas as recruitment, compensation, retention and benefits.
Models of Consultation
There have been a number of helpful models of the consultation which have been
produced over the last 30 years. Some are task-orientated, process or outcome-based; some
are skills-based, some incorporate a temporal framework, and some are based on the doctor-
patient relationship, or the patient’s perspective of illness. Many incorporate more than one
of the above.
Generic Model
Founded: 2005
Headquarters: Arlington, Virginia, United States
Number of locations 106 offices
Key people John J. Haley – President, CEO, and Chairman of the Board Revenue
1.68 billion
WatsonWyatt.com
Deloitte
Founded: 1845
Deloitte Touche Tohmatsu Limited (also branded as Deloitte)
Aon Corporation
Founded: 1919
Founder(s) W. Clement Stone
Headquarters: Aon Center Chicago Loop
Products: Insurance, Risk management,
Human resource consulting Revenue
Website: AON.com
PwC
Founded: 1849
Headquarters: London, United Kingdom
Products: Assurance, Tax Advisory, Consulting, Financial Advisory, Actuarial, Legal
Revenue, HR.
Website: pwc.com
Towers Watson
Founded: 2010
Headquarters: New York
Website: TowersWatson.com
Hewitt Associates
Founded: 1940
Headquarters: Lincolnshire, IL
$3.2 billion in fiscal 2008
Website: www.hewitt.com
Hay Group
Founded: 1943
Headquarters: Philadelphia, United States
Products Management consulting services
Website www.haygroup.com
Buck Consultants
Founded: 1916
Headquarters: New York
Global HR Technology and Administration
Health and Productivity
Human Capital Management
Retirement Employees
Website: www.buckconsultants.com
Sterling Global HR Consulting
Founded: 1982
Headquarters: United States
Sterling was established in the United States in 1982. Sterling has opened its branches in
many different places like Beijing, Singapore, Shanghai, Japan, India, Seoul & United
Kingdom etc.
www.sterlinghrconsulting.com
Major Players of HR Consulting in India
Datamatics Staffing Services Pvt Ltd (DSS) has been in recruitment since 1969 and
is one of the oldest professionally-run recruitment consulting firms in India. DSS is a
part of the 65 Million US$ Datamatics Group founded by Dr L S Kanodia.
Ma Foi Randstad
9to6 Consultants
9 to 6 Consulting is among the few HR consulting firms that have grown rapidly over the past few
years, to become one of the fastest growing HR consulting firm in the country.
Aaren system
Axis Consultants is a major indigenous Manpower company and Placement Agency organized to
provide manpower technical and non technical consultancy services to the ITES and IT Industry in
Hardware, Software & Telecommunications.
HR Consultant in Shivamogga
Udhyoginfo.com
Founded: 2010
With a Vision & Mission
To be the leading HR consultants within and beyond our geographical
boundaries.
Based in Shivamogga (Karnataka)
Employment Website in India
Monster.com Naukri.com
CoolAvenues.com
CoolAvenues.com is an MBA community focused website in India which caters to MBA Aspirants, B-School
Students and MBA alumni.
JobStreet.com is a job portal founded in 1997. Founded in Malaysia, it has expanded
its operations and services to countries like Singapore, Philippines, India, Bangladesh,
Japan and Thailand.
HR consulting industry has shrunk by fifth in recession
The HR consulting industry has shrunk by 20 per cent in the past year as
demand suffers in the recession, researchers have claimed. The report by
specialists’ source for consulting.com, which included a survey of the
largest buyers of consultancy services, concluded that there is still
significant demand for HR consulting but it was increasingly focused on
elements that offer a measurable financial return.
65 Consulting Jobs
Consulting is an extremely broad term. There are many types of consulting work, or consulting fields,
ranging from business to personal services. Here is a list of 65 examples of fields where consultants may
choose to work.
1. Accounting 1. E-commerce
2. Advertising 2. Editorial
3. Architecture / Building Safety 3. Energy
4. Beauty 4. Entrepreneurship / Small Business Start-
5. Business Analysis up
6. Business Change / Reform 5. Environment
7. Business Networking 6. Fitness
8. Career Advice 7. Home Improvement
9. Childbirth 8. Human Resources (HR)
10. City Planning 9. Imports / Exports
11. Clothing / Fashion 10. Information Technology (IT)
12. College Admissions 11. Insurance
13. College Planning 12. Intercultural Communications
14. Computer Training 13. Interior Decorating
15. Crisis Management 14. Investments
16. Diet & Nutrition 32. Leadership
17. Diversity in the Workplace 33. Legal
34. Management 50. Search Engine Optimization (SEO)
Strengths:
•The Expertise knowledge of the consultants in the respective field is the strength of
the industry. Every person will be knowledgeable in his own way.
•Specialized approach in every field has lead to increase in the demand for the
consultants in which they are specialized.
•The long presence of consulting activity in the world has created a trust in the
minds of the people who ask for an advice.
•Wrong person choosing a wrong field to start consulting services. There are few,
who choose wrong field as their career. This makes the consulting services as
weaker, loosing the hopes of the clients.
•At present time, the recovery stage of the global economy creates an immense
opportunities to the consulting services. The services like Management, HR, IT, Tax
& Law, Marketing, engineering, etc will get a boost now.
•For HR Consulting, especially in countries like India & China, where the population
is high, the opportunities are vast to meet its clients requirement at low cost.
•Lack of knowledge of the people will be an opportunity for the consultant to provide
his service.
Threats:
•Global competition has become a threat for the domestic players. As globalization
increases the opportunities, the global players threat the domestic and local players.