Consulting is a top career choice for many job seekers, and it is becoming more dynamic and competitive than ever. Do you want to secure a position in this industry?
This article gives you a snapshot of the current consulting landscape and explores five key trends that shape the industry. What is more, it offers practical tips for future consultants to effectively capture the trends.
Keep reading to discover how you can thrive in the world of consulting!
Table of Contents
Consulting industry overview
A highly valued career
A career in consulting is considered one of the top choices for many people because of its challenging and rewarding experience.
Management consultants act as external experts who provide a fresh perspective to the company. Their advice is often highly valued because it helps organizations solve big problems and maximize their potential.
A promising and growing industry
The consulting industry is made up of different layers of firms:
- MBB, which stands for three top consulting firms: McKinsey & Company, Boston Consulting Group, and Bain & Company;
- Tier 2 with notable names like Accenture, Kearney, etc;
- Big 4, including Deloitte, PwC, EY, and KPMG;
- Boutique firms that specialize in specific industries or types of consulting.
Four tiers of management consulting firms
Consulting has seen significant growth and evolution in recent years. According to Statista, it was valued at roughly one trillion U.S. dollars in 2023. The market value of the industry reached its highest point in 2022 and is expected to grow even more in 2024.
This continued growth shows how important consulting has become in the business world. With the increasing complexity of the business world, more and more companies need help from consultants to solve their problems.
Management consulting market size worldwide 2014-2023, with 2024 forecast (Source: Statista)
Five key trends of consulting industry
The article synthesizes the five most notable trends from experts on platforms like NMS Consulting, LinkedIn, and Consultancy.uk. If you have other opinions, we welcome further discussion in our community!
Five key trends of the consulting industry
Technological disruption
The rise of new technologies including Artificial Intelligence (AI), machine learning, and automation is changing how consulting works.
AI and machine learning help consultants make data-driven decisions. Consultants now can analyze big data to predict trends and outcomes, making it easier for companies to make smart choices.
Besides, automation boosts efficiency. Robotic Process Automation (RPA) can do repetitive, rule-based tasks that used to take a lot of time. This means consultants can handle more projects and be more productive.
Technology also transforms the recruitment process. Tech-based assessments like McKinsey Solve Game and BCG Casey Chatbot are widely used to choose the most suitable consultants for the firm.
Impact of technological disruption
Digital transformation
Digital transformation has been a major trend of the modern era and will continue to be a key focus of implementation for companies in all industries.
As a result, there will be a need for consultants with expertise in digital strategy. These consultants are those who know how to use digital tools to improve business operations.
This trend is also pushing big consulting firms to create special innovation hubs and labs for digital projects. For example, BCG has launched BCG X, and McKinsey has developed their in-house Product team. These efforts show that consulting firms want to invest in researching new ideas and help clients implement digital strategies.
Sustainability and ESG focus
The government is placing a high emphasis on social responsibility for companies. ESG ratings, sustainability audit, and transparent reporting have been executed to evaluate a company’s environmental and social impact.
This justifies a rising demand for sustainability consulting, which involves guiding clients on how to implement sustainable practices.
Responding to the trend, consultants now need to integrate ESG metrics and strategies in their solutions. In other words, a recommendation that can solve clients’ problems without compromising ESG standards will gain more support.
How sustainability & ESG focus impacts the consulting industry
Specialization in niche areas
While generalists are still welcomed, there is a growing demand for consultants with deep expertise in a particular field. By focusing on a niche, specialists can offer more tailored advice, making them stand out in the market.
As a result, boutique consulting firms - small firms that focus in specific areas - can sometimes compete with the large ones that cover a wide range of services.
Additionally, the demand for niche expertise has led to the opening of specialist positions within consulting firms. Now, firms are not just hiring general consultants and research assistants. They are also looking for specialists like data analysts and or finance consultants to provide higher-quality solutions to clients.
Rise of the gig economy
Gig economy refers to a labor market where people work on short-term contracts or as freelancers instead of having full-time jobs.
Indeed, project-based work is becoming more and more popular. Clients are now looking for experts to help with specific projects rather than long-term commitments to save time and money.
This shift benefits independent consultants and boutique firms who have the flexibility to adapt quickly to client requests and offer flexible services.
Next steps for future consultants
Five next steps for future consultants
Become more tech-savvy
With the rise of technological and digital transformation, it is crucial to increase your tech-related knowledge and skills.
You can start with staying updated on emerging technologies including blockchain, AI, cryptocurrency, and the Internet of Things (IoT). Check the reports from MBB firms (McKinsey, BCG, Bain) or market research companies like DecisionLab and Gartner, which often provide valuable insights into current technologies.
Moreover, you should take online courses to equip tech-related certifications, which will increase your credibility in the industry and enhance your competitive edge. Coursera offers excellent courses to help you become more tech-savvy, such as Google Data Analytics and IBM Coding for Beginners.
How to become more tech-savvy
Update ESG knowledge
As mentioned above, it is important that future consultants learn to balance their business performance with their ESG responsibility.
To learn more about ESG, you can read articles from Big 4 firms like PwC and EY, which update the latest trends in sustainability and social responsibility. Additionally, their articles include huge case libraries featuring real-life examples of how companies successfully integrate ESG into their strategies.
Build your network
Strong relationships with clients and colleagues are crucial for success, especially in the gig economy. For independent consultants and small firms, many deals often come from referrals when clients choose to work with them based on recommendations from others.
To start building your network, consider joining business networking events or conferences where you can meet people in your field. You can find information about these events on social media pages (Facebook or Linkedin) of companies.
Another way is to create a solid LinkedIn profile to showcase your skills and connect with professionals. Make sure to share interesting articles and engage with others to grow your presence on the platform.
Strengthen core consulting competencies
No matter what trends emerge in the industry, having strong foundational skills is the most sustainable way to secure your position and succeed in your career. Core competencies can include problem-solving, communication, analytical skills, and critical thinking, which are essential for any consultant.
Some core consulting competencies should be learned
Find it challenging to improve these consulting skills? You can check out our Case Interview End-to-End Secrets Program to ace your mindset and skills as a real consultant. The bundle provides tips and techniques to tackle a case as well as practical exercises to sharpen your business sense.
Familiarize with tech-based assessment
Tech-based assessments like McKinsey Solve Game and BCG Casey Chatbot are known for their low pass rate (only 20-30%). If you want to increase your chances with these top consulting firms, it is necessary to start practicing from today to get familiar with the tests. Begin by getting used to the interface and improving your skills through various mock tests.
Try our McKinsey PSG Simulation and BCG Casey Simulation for the most realistic practice experiences. Most importantly, we offer Free trial versions to help you explore the value of our simulation tool without any commitment.
/filters:quality(75)//case_thumb/1669783363736_case_interview_end_to_end_secrets_program.png)