Consultancy sector in India is growing at a rate of 30% per annum and is projected to transform into an industry worth INR. 27,000 crores by 2020. Today, India has about 6000 consultancies in the metropolitan cities alone which are supported by over 2000 Research & Development institutes and laboratories. The progression here on is nothing short of phenomenal.
Over 50% of India’s GDP comes from the services sector which is a vital reason why the scope in the consultancy business is tremendous. This is supported by extremely strong capabilities and young talent ushering into key fields like IT management, petrochemicals, telecom, civil engineering, power, real estate, etc. Other factors that work in favor of the growth of consulting business in India is its low-cost structure, dynamic thinking, easy acceptance, high learning, grasping skills, favorable FDI policy, and the entrance of global players in the sector. The rise of consultancies is inescapable as it has taken place of a crucial segment in the economy.
Consultancies however also face the risk of not being rewarded for their knowledge, insights, and crucial advice by their clients. Your consulting firm might also become a victim of a data breach due to a software error or a misdeed by a disgruntled employee causing you to face undesirable claims by the client. Claims might also come in form of unhappy clients as your consultancy services fail to pay well and deliver desired results. Plus, you also have to protect yourself against income volatility and business interruptions.
