Consulting Services Industry Overview

Excerpt from Consulting Services Report

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 companies include Booz Allen, Deloitte Consulting, IBM Global Services, and McKinsey & Company, (all based in the US), as well as Accenture (Ireland), Roland Berger (Germany), and Tata Consultancy Services (India).

Competitive Landscape

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.

Products, Operations & Technology

Management consulting services, including consulting related to strategic planning, marketing, and human resources, account for about 80 percent of US industry revenue. Other major revenue sources include scientific and technical consulting services (12 percent) and environmental consulting (about 8 percent).