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Management consulting up in China

Nov 22
Tags: Rest of the World
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Management consulting up in China

Management consulting may still be a relatively new phenomenon in China, with much of the work within the industry carried out by large, multinational, Western clients, but the market has still managed to grow by around 10 per cent and is now thought to be worth $2.9 billion (£1.79 billion).

The figures were recently published in a report by Source Information Services, which went on to state that the amount of untapped growth in the market means that there is unlikely to be any let up in its progress any time soon.

All of the largest sectors that one associates with a strong consulting market showed signs of progress, including manufacturing (up 13.5 per cent to $793m), Financial Services (up over 10 per cent to $421m), and Energy and Resources (up over eight  per cent to $365m).

It also said that when it comes to the manufacturing sector in particular, the demand for consulting is mainly focused on consumer goods for the emerging middle class and skilled manufacturing products for the export industry.

Despite the fact that much of the low-skilled manufacturing has moved to other countries, such as Vietnam and Bangladesh, consulting is still finding a way to flourish within the sector.

The most significant service to be found in the report however, was that of operational improvement, with was up by 3.6 per cent to more than $1billion.

B.J Richards, a Senior Analyst at Source and author of the report commented: “The Chinese consulting market looks to remain hotly competitive for the near future, as there seems to be more consultants flocking to the market than work to support them, and increasingly sophisticated local firms threaten to join the fray. A thorough understanding of the Chinese market, a highly specialised skill set, pragmatic solutions, and far-ranging international insight will remain the most sought-after traits and therefore the best opportunities for differentiating yourself from the crowd.”

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