The focus of the management consulting industry is to give organizations and companies professional guidance on how to improve their internal procedures, operations and management efficiency in general.
Although two years of the COVID-19 pandemic have had a massive impact on businesses worldwide, the global management consulting industry has grown by almost 1% per year, reaching a record revenue of US$693 billion in 2022.
Despite the current prospects of global instability, predictions suggest a 1.9% rise in the consulting sector and US$706 billion in global sales in 2023.
With this in mind, what are the scenarios for this industry’s development? In this article, we’ll evaluate the trends for 2023 and beyond. Read on to learn more.
Trend #1: Tech-focused consultancy and automation
As technology has advanced at a rapid rate in recent years, a number of tools and approaches have been developed that can be of great help to management consulting businesses. These digital innovations can all aid the industry:
Augmented and virtual reality tools can assist clients to visualize complex ideas
Cloud-based collaboration programs can help work with clients in real-time
AI can help to automate laborious, manual operations
Machine learning can assist clients to resolve challenging business issues
For instance, to speed up the implementation of AI solutions, the multinational consulting firm Deloitte has established the Deloitte Centre for AI Computing. Furthermore, Consultancy Ernst & Young has invested in its digital shift, allocating US$1.5 billion to technological solutions, strategic relationships, and audit quality and innovation programs.
Trend #2: Achieving sustainability
Environmental, social, and governance (ESG) management consulting focuses on the challenges related to sustainability. This can help companies to incorporate ESG elements into their general company plans and decision-making processes which, in turn, leads to more empathy from consumers and, of course, has a positive impact on the social and environmental problems faced by modern society.
Therefore, businesses seek out specialized ESG advisors. With an anticipated annual growth rate of 17% forecast for the period 2022 – 2027 and an estimated market size of US$16 billion, ESG advisory businesses are currently among the most rapidly expanding consultancy areas globally.
ESG services may include impact evaluations, ESG reporting, stakeholder involvement, and the formulation of sustainability strategies.
It is envisaged that consultants will provide further training on the dynamic nature of environmental laws and regulations, equipping them with the knowledge and abilities required to advise their customers on the changing regulatory environment.
Given that companies are aware of how ESG performance affects their brand image and financial results, consultancy service providers able to help incorporate ESG elements into business strategy will be in great demand.
Trend #3: Discovering new talent and keeping the existing one
Today, consulting companies must rethink how they find and keep talent. According to experts, consulting firms are expected to adopt new methods of thinking that correspond with the pace and requirements of Generation Z potential employees educated in the digital age if they want to attract more skilled (and often younger) new staff members.
To ensure that its staff members are confident in utilizing modern technology, management consulting companies are expected to invest more in their ongoing training and professional growth.
Smart companies understand the need for a modern, technology-driven recruitment process that is quick, simple, and responsive. Potential candidates expect to proceed with the openness and fast pace that they have come to expect in the e-commerce industry.
Focus on skills instead of a top university degree
When hiring new employees, the traditional emphasis on highest-ranking universities is gradually being shifted to an emphasis on skill sets. The demand for specialists with a particular set of abilities will grow as management consulting catches up with other sectors in terms of digitization. For instance, a person will be in higher demand if they have expertise in, or at the very least an acquaintance with, AI, machine learning, and natural language processing.
The management consulting trends predicted for 2023 will be dominated by digitization and sustainability concerns. With the increasing number of freelancers and the influx of SMEs into an already competitive market, business management consulting requires new experts with cutting-edge skill sets. These employees can keep up with the industry’s rapid technological advancement. As long as management consulting keeps up with the fast pace of tech development, we will witness its continued expansion.
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