Management Consulting Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Every organization and its procurement team look forward to negotiating the best deal while procuring a set of products or subscribing to services. Rate benchmarking involves price/cost comparison of more than one set of products/services to analyze the most efficient combination that can potentially help the procurement team in getting the optimum rate.

When analyzing rate benchmarking of management consulting, the type of services, and the location of the firm play an important role. The average project value of consultants who predominantly utilize value-based pricing is higher than that of consultants who employ hourly fees. For consultants in their beginner or intermediate stages, the project-based pricing approach is a powerful approach. Similarly, in the U.S. salaries of management consultants can range from USD 90,000 to USD 200,000 each year. The senior consultants can earn up to USD 400,000 each year.

According to Payscale, in 2023 the average salary of a management consultant in India is USD 11,000 to USD 30,000 annually. For entry-level management consultants, it can be around USD 5,000 to USD 20,000. Management consultants with 1-4 years of experience earn from USD 10,000 to USD 30,000 each year.

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Labor cost is one of the key components of the total incurred costs while offering a product or service. Therefore, an organization must decide on whether the focus category should be retained in-house or outsourced if the organization is providing its products or services at competitive prices. If the organization decides in favor of outsourcing, it must understand the difference in the salary structures of suppliers before selecting a supplier and formulating a negotiation strategy.

According to our research, the consultants at Boston Consulting Group and Bain & Company receive a 5% - 10% higher base salary compared to the salary received by the consultants working in companies such as Alvarez & Marsal and Oliver Wyman. However, the year-on-year increment rate in all these companies majorly depends on the Key Result Areas (KRAs).

Organizations may find it cumbersome to continuously track all the latest developments in their supplier landscape. Outsourcing the activities related to gathering intelligence allows organizations to focus on their core offerings. At this juncture, our newsletter service can help organizations stay updated with the latest developments and innovations and subsequently assist in preventing disruptions in the supply chain. We have identified the following developments within the management consulting category over the last two years:

In October 2023, Accenture completed the acquisition of The Storytellers, a consultancy specializing in creative change management. This strategic move will boost Accenture's creative consulting services, with a focus on utilizing AI for optimized outcomes.

In October 2023, Boston Consulting Group (BCG) established a strategic collaboration with Anthropic, an artificial intelligence startup. Through this partnership, BCG and its clients will gain access to Claude 2, Anthropic’s competitive AI assistant product to Open AI. This will enable BCG's client team to integrate extensive documents and research effectively.

In February 2023, Bain & Company announced a strategic alliance with Open AI to help its clients identify and realize the complete potential and value of AI. Bain & Company has embedded the technology into its research, internal knowledge management system, and process to enhance efficiency.