India’s impressive $10 billion management consulting sector is in the midst of a silent revolution. For decades, this market has been largely controlled by major global players and the consulting divisions of international audit firms, known for their focus on high-level strategy and standardized, ‘playbook’ approaches.
However, a dynamic new wave of Indian consulting firms is rapidly making its mark. These domestic challengers are moving beyond traditional advisory roles, offering clients not just expert recommendations, but also direct, ‘hands-on’ execution support and a shared commitment to achieving tangible outcomes.
Consequently, these local consultancies are increasingly securing major contracts that were once exclusively awarded to their larger, international counterparts.
Analysts point to several strategic advantages held by these Indian firms. They excel at integrating themselves into daily business operations, developing tailored solutions for India’s diverse and often fragmented markets, and crucially, transferring essential capabilities to clients. This approach empowers clients to sustain positive changes independently, reducing long-term reliance on consultants.
Kiran Kothekar, Founding Partner of Vector Consulting Group, a prominent homegrown firm, shares his perspective: “Management consulting, at its core, is about empowering organizations to solve their toughest challenges and achieve sustainable growth.” He further explains the shift: “What we’re seeing now is that clients expect consultants to go beyond boardroom discussions. They want us to get deeply involved, literally ‘rolling up our sleeves’ to guarantee that the promised results are actually delivered.”
According to industry analysts, a growing number of Indian businesses are gravitating towards consulting partners who are willing to share risks, tie their fees to measurable results, and remain actively involved until all objectives are successfully met.
A significant edge for Indian firms also comes from their pragmatic approach to intellectual property. Instead of merely deploying proprietary tools and frameworks, they frequently co-create and share these resources, actively fostering the development of long-term internal capabilities within client organizations.
This collaborative strategy is particularly effective in the Indian context, where practical, on-the-ground execution is often the ultimate determinant of success.
Rise of AI
Furthermore, the escalating influence of Artificial Intelligence (AI) is profoundly transforming the consulting industry, simultaneously presenting both disruptive challenges and powerful new opportunities.
AI technology has democratized access to crucial insights, industry benchmarks, and established frameworks. This diminishes the unique information advantage that once belonged exclusively to the elite consulting firms. Consequently, traditional recommendation-based consulting—where clients primarily pay for access to a firm’s accumulated industry knowledge—is ripe for disruption and, as analysts suggest, is likely to become a commoditized service.
In response to this technological shift, consulting firms globally are rapidly introducing AI-powered services, ranging from comprehensive automation strategies to AI-driven enhancements in operational processes. However, the success of these initiatives has been varied.
Mr. Kothekar emphasizes, “While AI can undoubtedly accelerate the breakdown of complex problems, it cannot substitute the rigorous discipline required to transform a plan into concrete reality.” He concludes, “The true challenge lies in converting strategic insights into measurable outcomes, and that remains fundamentally a human endeavor.”
Nevertheless, global consulting giants maintain a formidable reputation as thought leaders, which will continue to provide them with a significant competitive edge. Yet, Indian firms are steadily carving out their own relevance in this landscape by championing their distinct, execution-focused approach.