Since management consulting represents more than half of the consulting industry, most of the market players are specialized management consulting firms or organizations with a business unit that offers management consulting services. The management consulting industry is a global market. Consultants help companies from various sectors to solve problems by applying management theory and business experience gained in research by developing concepts, practices and procedures for implementation in different sectors around the world. Management consulting began to develop shortly after the rise of management as a unique business field in the late 19th century, along with the Industrial Revolution.
The first companies were created by university professors. The first management consulting firm was named Arthur D. Little, after the founding professor of MIT, in the late 1890s. This firm originally specialized in technical research, but later became a general management consultancy.
Booz Allen Hamilton was founded as a management consultant by Edwin G. Booz, a graduate of the Kellogg School of Management at Northwestern University, in 1914, and was the first to provide services to industry and government clients. This company later changed its name to Booz & Co. With the pressure on OPEX, executives have to find other ways to get support from consultants at a lower cost.
It won't surprise you to learn that North America is the largest consulting services market in the world, accounting for nearly half of global sales. Now you know what capabilities and industries a consulting firm claims to have experience in. More than 60% of consultants work in companies with fewer than ten employees, usually independent professionals. It will also help you quickly detect if the consulting company is claiming an experience without having much to prove.
Management consulting also continues to expand more and more into non-business-related fields, specifically, working with governments, quasi-governmental agencies, and non-profit organizations. Once again, management consultants can be used to address a wide spectrum of different types of projects. The consulting offer ranges from identifying where technologies and skills will be required to how products and services are developed. The 5 industries with the highest demand for consulting services are financial services, health, life sciences, manufacturing, the public sector and energy.
They represent 87 percent of all consulting firms in the United States, slightly more than the U.S. Census Bureau's overall average of 76%. Technology consultants offer services that help companies adopt new technologies, digitize their processes and modernize their legacy systems. Similarly, some highly operational consultants would be an excellent option to lead teams in a plant transformation.
When IT management is included in management consulting and engineering consulting, the numbers are much higher. However, there are still many dimensions to be recognized and evaluated, which will separate consulting firms.