Management Consultancy business has become more vibrant in the liberalised regime. On an average more than two to three international business houses announce their plan to enter the Indian market every other day. Joint ventures have become the order of the day. Interestingly these MNCs have also brought with them, the latest technology, innovative management tool and a work culture which is very different from the Indian corporate work atmosphere.

The liberalised regime has made business environment very competitive. So much so, the business world is dictated by the law of the jungle -- survial of the fittest. Thus, in order to establish an exclusive brand identity, to create a niche in the market and to have that extra edge which differentiates the `best' from the `good', most of these top brass corporate houses are going in for `management re-engineering' or in simple terms refocusing their management strategies. And this is where the management consultants come into picture.

According to Ashvin Parekh, director, KPMG Peat Marwick India Pvt Ltd, multinationals see India as a lucrative market with tremendous potential. He says,``as a career option it has a bright future. Consultancy is a three fold business which includes core consultancy, supervision and quality control and general management consultancy.'' According to him, consultancy business has seen a major shift from general to knowledge based research analyses. He predicts a bright future for core consultancy though feels that in a couple of years general consultancy will wither away. Agrees Mario Lobo, Partner, Ray and Berndtson,``This sector will witness a shakeout in the next couple of years and only the `best' will remain in the business.''

However, KPMG is not the only company whose business is balloning. There are several other internatinal consultants: Mckinsey & Co, Arthur Andersen, Coopers & Lybrand, Price Waterhouse. Besides, there are small outfits which have mushroomed in the last one year and their business is also swelling.

Thus to compete in this highly competitive business environment most of the Indian corporate giants like Sail, IDBI, ACC, Bombay Dyeing, Tata group, Kirloskars have roped in well known management consultants to advise them on restructuring, technology upgradation, identify core strengths and map out business strategy for the 21st century. Says Raj Nair, director, Business Consultancy Group,``Any change in the corporate strategy calls for some form of organisational change.'' He further cites an example where a company's entire business underwent a change because of deregulation. There is no fixed rate fees among management consultants. The rates charged varies from clients to clients and consultants to consultants. It depends on the type of job and kind of assignment. Consultancy fees are said to have increased ten fold in the last four to five years. Three years back companies paid Rs 30,000 to Rs 50,000 for a general consultancy job. Today the same consultancy firms are charging around Rs 3 lakhs to Rs 10 crores. For instance, a public sector bank paid around Rs 3 crore to a well known management consultants for its advise on restructuring. Indian consultants charge a moderate rates.Meanwhile, industry observers feel that these high rates are quite justified. Mainly the foreign ones claim that converting a contract into an assignment in India takes twice the effort, as it is an emerging market. With these consultants charging hefty amount, the salary levels in their organisation are higher than the general industry standards. A management trainee with Mckinsey takes home anything between Rs 24,000 and Rs 50,000 per month. Auditing firms like A F Ferguson, Arthur Andersen pay around Rs 25,000 to Rs 50,000 to a consultant with minimum 2 years experience.

Consultants feel that it is this potential of the Indian market which has recently seen foreign firms making a beeline for India. Needless to say, consultancy is `the profession' for those job-hoppers who aim high.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.