Companies in this industry provide management, scientific, and technical consulting services, including specialized services such as environmental, human resources, IT, logistics, and marketing consulting. Major global companies include Accenture, Booz Allen, Deloitte Consulting, IBM Global Services, McKinsey & Company, Roland Berger, and Tata Consultancy Services.
The worldwide consulting services industry generates about $430 billion in revenue annually, according to Plunkett Research. The US and Europe are the largest markets for consulting services, but global firms are targeting other industrialized regions with emerging economies for growth. The size and economic growth of China and Brazil, in particular, have attracted major investments from consultancies.
The US consulting services industry includes about 130,000 firms with combined annual revenue of about $180 billion. Key growth drivers include corporate profit levels, major changes to regulatory requirements, and the emergence of new technologies.
Demand is driven by the needs of businesses, nonprofit institutions, and government agencies for outside advice. The profitability of individual companies depends on the efficiency of their operations and their ability to maintain a steady flow of business. Large firms have advantages in being able to offer broad ranges of services and to take on more complex projects. Small firms can compete effectively by specializing.
The US industry is fragmented: the top 50 companies account for less than 30 percent of industry revenue.
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Management consulting services, including consulting related to strategic planning, marketing, and human resources, account for about...