Sectoral and Company Analysis of

Deloitte Consulting

• Group 7:
• Achal Sangal - 180103012
• Akancha Miharia - 180101124
• Anmol Baijal - 180101149
• Chinmay Bajaj - 180103068
• Divanshu Oberoi
• Vicky Vijay Suryawanshi -
180101120
 • Started in late 19th century
History – • 1930 – Started expanding
• 1960s – Internationalisation
Consulting • 1970-2000 - Outpaced the growth of world
Industry economy
• Services in 200 industry and functional areas

Source: www.statista.com
Global Industry

Source: www.consultancy.uk
Industry Growth

Source: www.consultancy.uk
Industry Growth Drivers- India
• Improved investment due to low-cost structure
• Entry of big players in Indian market
• Relaxation of FDI restrictions
• Strong capability in IT, Management, Civil Engineering, Telecommunication,
Petrochemicals, Power and Metallurgy
• Adoption of best practices data warehousing, Knowledge management tools &
internet
• Economic Confidence
Global Consulting Market Segregation

14%
20%

12%
27%

27%

Strategy Operations Finacial Advisory HR IT

 Largest and most
mature market
within professional
service industry

80% top B-school

graduates (from
India) & 35%
Valuation of $300
globally wish to
billion
join a major
consulting

Key Pointers company

about
Industry Global Growth –
Closely tied to the
5% , India Growth –
global economy
18.1%

Growth varies in
developed and
developing
countries

Source: www.sciencedirect.com
PESTEL Analysis

Political
Contract Law
Economic
Political stability
Rate of GDP Growth
Minimum Labor wage
Interest rates
High level of taxation
Level of Unemployment
FDI norms
IPR

Technological
Social Technological
Demographics of advancements in the
Population industry
Class Distribution Cost of technology
Education Background adaptation
Categories of Consulting Firms
• The Industry Elite (Arthur D. Little, A. T. Kearney, Bain, Mckinsey, BCG, Mercer
Management Consulting, and Monitor and Co.)
• The Big Four (Deloitte Consulting, Ernst and Young, KPMG, and Pricewaterhouse
Coopers)
• Boutique Firms (Oliver Wyman (financial services), Gartner (research), MarketBridge
(sales), and APM (healthcare)
• IT Specialists (IBM, Accenture, and Big Four)
• Human Resource Advisers (Hewitt Associates, Mercer, the Hay Group, and Towers
Perrin)
• Independents
 • Management/Strategy
• Human Resources
Types of • Technology
Consulting • Marketing
• Legal/Accounting
Services • Media/Public Relations
• Financial/Investment
Consulting in India
• 27000 crore – 2020
• CAGR – 30%
• 500-600 high value consulting contracts
• Biggest Driver : Digitisation (using AI, RPA and Data & Analytics)
• Growth in 2018 – 18.1%
• Heavy dependence on Public sector Funding
• Public sector funding is on a decline

Source: Assocham & www.sourceglobalresearch.com

 Indian Consulting Companies
Strengths
• Low-cost Structure
• Professional Competence
• Industriousness
• High learning Agility
• Adaptability to technology
• High Acceptability
• Strong Interpersonal Skills
Weaknesses
• Poor Brand Equity
• Lack of intensified market
expertise in foreign markets
• Low Quality Assurance
• Lack of Strategic tie-ups
• Low level of R&D
• Insufficient international
experience of Indian Consultants
Source: www.careerizma.com
 Major players

Global Consulting Industry Indian Consulting Industry

Consists of a wide variety of organizations including
• global strategy firms
Grew by in 2011, The Economist • consulting arms of technology firms(such as IBM
and Accenture)
• the big-four accounting firms (such as PwC and
McKinsey & Boston
Com-pany Consulting
The Bain & KPMG)
Company • host of niche consul-ting firms (including Universal
(McKinsey) Group (BCG)
(Bain) , 17.3%
12.4%, 14.5% Consulting, Avalon Consul-ting, and Oliver Wyman)

Around 500-600 high-value consulting assignments

are awarded every year by Indian clients, catering to
anUS$250-300 million market, including about 30-40
projects worth over US$2Million each.
- Malhotra (2013)
Business models - Malhotra & Morris, 2009
 Demand Drivers in Indian
consulting industry
Over the past few years, the Indian management
consulting industry has witnessed three major
trends:
• increasing importance of high-end strategy
consulting
• evolution of greater market segmentation
• focus on the outcomes of the consulting
assignment

(Meritus Knowledge Center, 2012)

 • Pre-liberalization theIndian consulting industry was dominated by a
Increasing demand for basic services such as market research, supply chain
optimization, information technology implementation, and financial
importance of restructuring (including equity and debt funding
• Post Liberalization, firms have begun to realize the opportunity cost
high-end to the firm because of poor strategy. Therefore, the demand for
high-end strategy consulting has begun attracting global strategy
consulting firms to India.
strategy • Earlu clients of these multinational corporation (MNC) strategy-
consulting firms in India were traditional business houses, who used
consulting their ser-vices to restructure their diverse businesses and seek
foreign resources/market access.
• The demand for strategy consul-ting has grown in smaller
professional firms, as they compete with national and global
competitors with their innovative products/services.
 • Indian consulting industry is going through increasing segmentation
of industry
• MNC strategy-consulting firms offer their services in the do-mains
of strategy and corporate restructuring, based on extensive global
Evolution of experience of similar projects
• . On the other hand, niche manage-ment consulting firms focus on
greater market either a specific domain (say infrastructure) or a class of problems
(say innovation)
segmentation • industry is also home to a wide variety of operational consulting
firms, with focus on improving their clients’ operational efficiencies
(like optimization of supply chains, change management, or
manufacturing efficiencies)
• special sub-segment of these operational consulting firms includes
those that focus on IT consulting (including technology and
services) as a means of either operational efficiency improvements
or greater innovation.
 Focus on the Indian Clients culturally distinct from western markets
outcomes of Their value is attached more on methodology or problem
solving methods rather than outcome
the consulting Value experience gained through breadth of exposure

assignment Thereby young recruits needs to packed with a healthy mix

of consultants
BARRIERS
The challenges facing the management consul-ting industry fall into three broad categories

Competition and differentiation: As competition intensifies with the entry of heterogeneous

players in the market, there is a significant need for consulting firms to define their unique identities and differentiate
themselves from the rest, in an increasingly fragmented industry.

Organizational design of the management consulting firm: The traditional

professional partnership organizational form is under threat with increasing globalization of consulting firms as well as
their clients. This necessitates that consulting firms consciously adopt new organizational forms that best suit their
contexts and identities

Internal organization of knowledge flows to serve client needs: High

knowledge intensity of management consulting firms ensures that firms proactively manage their knowledge flows
within the firm, especially tacit organizational knowledge. Efficient leverage of organizational knowledge is essential for
creating and maintaining the balance between exploitation of existing knowledge and creating new knowledge.
Varying strategies of competition
New competitors arrive at the industry doorstep with new/non-traditional
business models.
For instance, the consulting industry has seen entry of the big-four accounting firms, forward
integration by technology consultants (such as EDS’s acquisition of AT Kearney, or IBM’s services), and
the entry of specialized niche consulting firms.

The disruption is the incumbents’ responses

the responses include ignoring the new entrants or conceding the mass market to new entrants and
segment-retreat into high-margin low-volume activities.

The maturing of the disruptive entrants’ business models from a “barely

good enough” quality to a “generally acceptable” level, thereby flipping
the market into new bases of competition

Christensen, Wang, and van Bever (2013)

 Strategy-consulting industry was “wasting away” as
strategy had become a commodity, as bright
business school graduates were equally available to
top corporations as they were to consulting firms
for hiring.
The Economist (2002)
Employment Potential
Competitive positioning is critical to the success of
management consulting firms, as “eliteness
motivation” or “elitism” significantly motivates
graduates to choose The management consulting
industry consulting as a career.
(Gore, 1972; Miner, 1971, 1972)
 Create Create an autonomous business unit

How are Hire Hire leaders who come from the relevant schools of
experience

consulting Set up an independent (and custom-made) resource

Set up
companies allocation process

coping with Evolve Evolve independent sales channels

disruptive
changes Establish Establish new profit models

Ensure Ensure unwavering commitment from the leadership

Christensen et al. (2013)

Future Prospects
• Management Consulting Services Market is expected to Hit $343.52
Billion by 2025 in India
• In the industry, Deloitte Consulting made the most profits in 2017 and
recent years, while PwC and EY were ranked 2 and 3.
• The market share of them was 10.31%, 9.97% and 9.69% respectively
in 2017.
• However due to recently alleged lapses in their audits the investment
by the company is forecasted to be low.
Revenue of Deloitte India from 2006 to 2018, by
service line (in billion U.S. dollars)
• Deloitte plans to double headcount at its largest India facility in
Hyderabad to nearly 80,000 over the next three to five years.
• The company’s other key offices in India - Mumbai, Bengaluru,
Gurugram - will also see increase in hiring by 2020.
• Deloitte India is investing heavily in data and 5G technologies so we
can see them come up with a digital transformation
• This will completely change the ways of engagement, interactivity and
consumption pattern of the population.
Deloitte Consulting
• Deloitte Consulting comprises one of the big four companies in the consulting industry
• It offers consulting services in the areas of human capital, technology and strategy & operations,
mergers & acquisitions
• Deloitte has more than 220,000 professionals at member firms in more than 150 countries and
territories, delivering services in a number of industries in including:
• Consumer & Industrial Products: Manufacturing, Consumer Business, Retail & Distribution, Travel, Hospitality &
Leisure
• Energy & Resources: Oil & Gas, Mining, Power & Utilities
• Financial Services: Banking & Securities, Insurance, Investment Management & Real Estate
• Life Sciences & Health Care: Health Plans, Health Care Providers, Life Sciences
• Public Sector: Federal, State & Local
• Technology, Media and Telecommunications: Technology, Media & Entertainment, Telecommunications

https://www2.deloitte.com/za/en/pages/strategy/solutions/deloitte-consulting-services.html#
Competitors
Financial Services, Consumer
Products & Retail, Health, Private
Equity, Technology, Power &
Utilities, Telecommunication, Real
Estate, Hospitality & Construction
Talent management, Merger
Management, Organization Design,
Corporate culture and related
changes, Maintaining Enterprise
Agility

Technology, Customer Insight &

Growth, Supply Chain & Operations,
Financial risk & regulations, Cyber Management, Risk
Talent & Organization, CFO &
Security, Technology, Strategy, consulting, Deal Advisory,
Enterprise Value
Management, Sustainability and Strategy
Responsible Business

• Source: https://www.mbaskool.com/brandguide/management-and-consulting/4264-deloitte-consulting.html
 Service lines

Market Industry verticals

Segmentation

Customer size
www2.deloitte.com
Frost & Sullivan Report
Target Customers

Deloitte Consulting provides services to all the type of companies (mentioned

below) and support the improvement of the brand perception on all levels

Deloitte supports the creation of powerful brands with the services it offers to
companies operating in the following sectors:
• where competition is growing continuously
• where price and product-based competition is challenging
• when companies intend to enter new markets, where customer expectations
are high

www2.deloitte.com
Service design framework
(Consulting Firms)
• Providing information to a client
Discover

• Making a diagnosis, which may necessitate redefinition of the problem

Define

• Making recommendations based on the diagnosis

• Building a consensus and commitment around corrective action
Develop

• Facilitating client learning that is, teaching clients how to resolve similar problems in
the future
Deliver • Permanently improving organisation effectiveness

www.sciencedirect.com
Brand Elements
• Brand Identity
Deloitte aims to achieve a single brand architecture and identity system so that regardless of
where a client is geographically, or what business they interact with, or what device they use to
reach member firm professionals, they have a consistent and meaningful Deloitte experience

• Brand Image
The significance of green dot in Deloitte’s logo represents that the brand is arrived and ready to
serve their customers

www2.deloitte.com
 Deloitte’s Service Line
• Audit & Assurance
Deloitte provide assurance and advisory services to ensure that a company or organisation is
following guidelines, rules and policy, and provide both internal and external confidence for
financial statements
• Consulting
To help solve clients’ most complex issues, Deloitte delivers strategy and implementation, from a
business and technology view so as to lead the market
• Financial Advisory
Deloitte’s provides end-to-end advisory solutions to preserve value in mergers and acquisitions,
restructuring, investigations and disputes
• Risk Advisory
Deloitte offers risk management to unleash organizations potential, creating and protecting value
for their stakeholders and thereby creating competitive advantage
• Tax Services
Deloitte helps you anticipate change, unlock the full potential of people, extract strategic insights
from the data, and create new value for the organization through digital technologies
• www2.deloitte.com
 Major Services offered by Deloitte Consulting
• Human Capital
Deloitte’s Human Capital services leverage research, analytics, and industry insights to help design
and execute critical programs from business-driven HR to innovative talent, leadership, and change programs
• Strategy and Operations
Deloitte’s global network of Strategy & Operations professionals draws on the strength of full suite
services and industry experience to focus on the real issues affecting businesses today
• Technology
Deloitte’s Technology services around the world help clients resolve their most critical information
and technology challenges
• Finance Transformation
Deloitte’s Finance Transformation services is a set of offerings that assist finance executives with
assessing their finance strategy and vision, and helps design and implement change to their finance
organization, process and systems to improve the overall value of finance

• www2.deloitte.com
 Print

•Hoardings
•Newspapers
Communication
Mix
Digital

•Website
•Google AdWords
www2.deloitte.com
 Recommendations
for Revenue
Management
• The fee structure is tied to billable hours or days, which encourages
lengthy, overstaffed engagements to maximize revenue. Thus, the
company should come up with a solution to optimize the number
of people working on a project and avoid disguised unemployment

• Standardizing solutions to recurring problems in different industries

– Certain problems are faced by clients from all industries at various
points in time, standardizing the procedure for that solution would
save energy, time and money
 Service Process of Deloitte

• Facts related to the problem and the client

Discover • Evaluate the market, 10Ps
y

• Identifying big threats & opportunities

• Solutions to limit liabilities and maximize advantage
Analysis

• Document Findings & distribute to respective personnel

• Create case study detailing specific causes & liabilities along with recommendations
Report

• Decide which strategy to implement, alter and abandon

Strategiz • Determine resources needed for implementation
e
 Service Process of Deloitte

• Work towards effective implementation of plan

Implement • Create new systems, procedures and policies to make sure solutions work 100% of the time
ation

• Review of everything done from start to finish

• Problems, solutions, key people involved, expectations, and new systems, procedures & policies
Report

• One or two follow ups after the final report depending upon the complexity of the solution implemented
Follow Up
 • Difference of standards
BOTTLENECK between different regional
offices
IN THE • Staffing of international
PROCESS projects is difficult
• No particular approach to
produce star management
consultants
• Knowledge
management systems,
research centres and
industry groups are rarely
shared
https://www.firmsconsulting.com/quarterly/deloitte-so/
• HOW TO OVERCOME
THEM
Enable global partnership between
different entities thus facilitating
knowledge sharing
Standardize rates and build trust between
offices
Develop star consultants by improving
their training programs
Control regional activities and build a
global brand
SUPPLY AND DEMAND
They do not match, due to :
• Lack of “fit for purpose” : Accommodating requests to maintain high customer satisfaction rating
• Misaligned incentive structure : Directed to satisfy demanding BU customers, while driving down costs
• Weak governance mechanisms : SLAs serve as a poor substitute for a more active dialogue
• Inaccurate price signals : Prices do not facilitate economic decision making

Changes required :
• BU managers must make trade-offs in nature, volume and quality levels of service they consume
• Pricing should be a demand management facilitator, not a cost recovery vehicle
• Incentives should be directly linked to BU’s cost reduction goal
• Good governance sets the stage for a genuine affordability dialogue

https://www.strategyand.pwc.com/media/uploads/DrivingDemandManagement.pdf
 CUSTOMER LIFETIME VALUE
Represents the net present value of a future profit or revenue from a specific customer

CLV focuses on :
• Targeting marketing and retention campaigns
• Determining the level of customer services
• Design of new potential products/business plans
• Planning and forecasts of the entire business
• Portfolio valuation

 Generally, customers are divided into four categories: high/low value – high/low risk
 Recommendation would be to target more profitable customers and retain them

https://www2.deloitte.com/content/dam/Deloitte/in/Documents/technology-media-telecommunications/in-tmt-marketing-leveraging-data-for-
reincarnation-noexp.pdf
 EMPLOYEE & THE SERVICE DELIVERY PROCESS
Key elements of a Service Delivery System :
• Service Culture : Built on elements of leadership principles, work habits, vision, mission and values
• Employee Engagement : Includes employee activities, purpose driven leadership and HR processes
• Service Quality : Includes strategies, processes and performance management system
• Customer Experience : Includes elements of customer intelligence, account management and co creation

Initiatives taken in the short term to improve HR service delivery effectiveness :

• Reengineered Key HR Processes
• Improved Line Managers’ People Management Capabilities
• Focused/ Re-Focus on the Role of HRPB
• Implemented Self Service Portal

https://www.servicefutures.com/four-key-elements-service-delivery-system
https://www2.deloitte.com/content/dam/Deloitte/in/Documents/human-capital/in-consulting-hc-hrt-business-enabler-noexp.pdf
Thank You