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Consultancies Position Themselves to Serve Global Markets and Multinational Corporations, Business and Industry Trends Analysis

Major consultancies operate offices in the most important business centers in Europe and Asia-Pacific as well as in North and South America.  Many operate worldwide and have multiethnic, multilingual employee bases.  New overseas offices may be opened directly by a consulting firm, but local offices are often acquired.  These acquisitions offer some advantages, including built-in client and employee bases.  Many of the largest consultancies get 50% or more of their revenues from overseas.  The newest frontier in global consulting is Africa, where rapid economic growth is being enjoyed by a handful of nations.
The increase in offshoring is adding fuel to this trend.  Technology consulting firms in particular are competing fiercely with companies based in lower-cost nations, such as Wipro, based in India.  As a result, global consulting companies based in the U.S. and Europe have no choice but to open offices in lower-cost nations.
Management consulting firms are building their presence in emerging markets, especially in India and China.  Deloitte Touche Tohmatsu, for example, has invested heavily in business development in India and China, in addition to Southeast Asia, Russia, Brazil and the Middle East.  Meanwhile, EY retains a major presence in China with thousands of employees.  Having staff working in countries where local competition is growing (such as Tata Consultancy Services Ltd. in India) helps western firms to better compete in global markets.
In China, rapid growth in recent years at industrial, financial and services companies created superb opportunities for U.S. and European consulting firms.  Chinese executives are eager to adopt effective strategies and styles needed to become truly global player within their fields.  Consulting contracts cover such areas as human resources, IT, corporate strategy, operations, marketing and manufacturing.  As China matures, however, U.S. and European consulting firms are beginning to see some of their most talented people jump ship and set up independent practices in Hong Kong, Shanghai or Beijing.  Meanwhile, Chinese economic growth has been slowing, and the Chinese government has dramatically increased regulation and scrutiny of foreign consulting firms.
An interesting development in India has occurred as well.  Former consultants at top firms such as McKinsey are becoming entrepreneurs, setting up their own research and consulting shops, taking advantage of the low payroll costs of local MBAs, engineers, CPAs and Ph.Ds. 

SPOTLIGHT:  Infosys Ltd.
Infosys Limited provides next-generation consulting, technology, outsourcing and next-generation digital services to businesses in more than 45 countries.  The company’s range of customized software solutions include development, maintenance and reengineering as well as eCommerce consulting.  Business solutions include consulting and systems integration comprised of consulting, enterprise solutions, systems integration and advanced technologies; business IT services comprised of application development and maintenance; independent validation services; infrastructure management; engineering services comprised of product engineering and life cycle solutions and business process management; products, business platforms and solutions to accelerate intellectual property led innovation, including Finacle, the company’s banking product, which offers solutions to address core banking, mobile banking and e-banking needs of retail, corporate and universal banks worldwide; and newer areas such as cloud computing, enterprise mobility and sustainability.  Infosys’ artificial intelligence (AI)-based solutions span automation, robotic process automation, blockchain, Internet of Things (IoT), autonomous vehicles and other technologies.  Solutions are delivered through the company’s proprietary Global Delivery Model, which divides projects into components that are executed simultaneously at client sites and at development centers in India and around the world.  Subsidiaries of the company include EdgeVerve Systems Limited, Infosys BPM, Infosys Consulting, Infosys Public Services and Skava Systems.

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