Market Trends of Consulting Service Industry
Operations Consulting Service Type to Hold Major Market Share
- Operations consulting services are mainly used to enhance operational efficiency. Consultancy activities in this segment differ from advisory services to hands-on implementation support for primary functions (e.g., sales, marketing, production, etc.) and secondary functions (e.g., finance, HR, supply chain, ICT, legal, etc.). Operations consultancy forms the largest segment within the advisory branch.
- Growth in applications such as manufacturing, supply chain management, process management, and operation waste reduction, among others, mainly drives the demand for operation consulting services. Supply chain management, process management, procurement, and outsourcing are some of the most adopted operations consulting services.
- Demand for operation consulting is expected to grow to enhance operational efficiency and reduce operations costs. Operation inefficiency can cost a business a considerable share of its revenue annually. Consultancies such as Acuity Knowledge Partners offer SCM consulting services, and the company has witnessed a significant surge in demand after the pandemic. Over the last decade, the supply chain management software and procurement market expanded more than twice.
- Supply chain management consulting services concerning sustainability practices are increasing as companies invest significantly in boosting the ecological footprint of their operations. Businesses in the region have acknowledged the supply chain disruption witnessed in the past years and focused on resilient supply chains to sustain the future.
- The developed regions also witnessed the growing trend of engaging management consultancies in implementing operations management innovations in the public sector. Different cultures, structures, managerial knowledge, and investment patterns often hamper public services. Operations consulting services are often associated with strategy and technology consulting services; therefore, growth in one eventually fuels the demand for others.
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North America is Expected to Hold Significant Market Share
- The COVID-19 pandemic accelerated broader transformation initiatives by businesses across industries to come out of pandemic challenges in the best possible organizational and financial shape, leading to the demand for consulting services in the United States. The plan that had been planned for the coming years by the business has necessitated the need for consulting services to make changes and drive business operations, adding growth to the market.
- The trend of climate control and net zero strategy in end users is creating an opportunity for market vendors in the United States. Companies increasingly seek consulting support to integrate environmental, social, and governance (ESG) considerations into their strategies and operations.
- For instance, in January 2023, Boston Consulting Group (BCG) and the American Bureau of Shipping (ABS) signed a MoU to offer joint services in decarbonization consulting to marine and offshore value chain clients. The new joint offering can support shipping asset owners in making technical and operational improvements to reach net-zero goals and provide advice on carbon capture technology and the uptake of alternative and low-carbon fuels, among other areas.
- Technology consulting in Canada is growing slowly as technology adoption among businesses in the country needs to catch up. According to the CME 2023 Technology Adoption Survey by Canadian Manufacturers & Exporters (CME) and Statistics Canada, businesses were reluctant to invest in technology for their operations. The manufacturing sector in Canada was composed of small businesses, with 93% of businesses having fewer than 100 workers and a slower technology adoption rate. Further, the survey stated that 28% of manufacturing businesses were at the beginning of digital transformation, and 12% said they were yet to start.
- Recent Canadian Digital Adoption Program (CDAP) initiatives support small and medium-sized enterprises (SMEs) to digitally transform their businesses and accelerate digital adoption across the country by the Canadian Federal Government. These are likely to create their way ahead by increasing the demand for technology consulting services in Canada.
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