BUSINESS AND ACTION PLAN of ATCF –Trend & Competition
Consulting services (management, scientific and technical) generated about $160.3 billion in revenues in the U.S. during 2007, according to Plunkett Research estimates. This is an increase of about 3% over 2006 estimates. (Accounting services generated an additional $110 billion in 2007, up about 5% over 2006 according to Plunkett Research estimates.) Kennedy Information, www.kennedyinfo.com, places the global consulting market (including management, human resources and information technology consulting) at about $310 billion in 2007.
One of the fastest-growing segments of consulting has been information technology (IT). This segment includes consultants focused on e-commerce; telecommunications; intranet and Internet strategies and functionality; hardware systems design and implementation; software design, acquisition and implementation; and web site design and operation.
During the tech boom of the 90s, IT consultancies like the now defunct marchFIRST appeared out of nowhere and quickly attained annual revenues in the hundreds of millions of dollars. The 90s, through the widespread commercialization of the Internet and fiber optics, as well as the rapid spread of networked computing, brought a dizzying tidal wave of technology opportunities to light. Managers everywhere wanted to quickly ramp up new systems, from web sites to private data networks to advanced e-commerce systems. They turned to consultants, and the IT consulting companies boomed. These consultancies created marketing partnerships with leading hardware and software manufacturers so that they could quickly recommend, purchase and install technology system packages-at high profits to both the consultancies and the system manufacturers However, consultancies posted significant growth in the 2005 through 2007 period. Major consulting firms are hiring again-stalking the ivy-covered halls of America’s best business school campuses in search of the best and brightest new MBAs. The fact that new graduates will have trouble getting jobs in the financial and banking industry in 2008 will be a boost to recruiters at consulting companies. However, a question looms about consulting firms’ ability to grow and hire in 2008 in light of the latest economic slowdown and shrinking corporate budgets. Government budgets are under pressure as well, particularly at the state level where large deficits loom. Big corporations and governmental agencies are prime clients for consultancies.
At the top of these the fact that Philippines have a large pool of English-speaking that is very much US-oriented. Indonesia might have a large pool but they are not English Speaking, Malaysia maybe English speaking but it does not have a large pool. So there is a unique set of advantages that Filipino has to offer plus other advantages in terms of telecommunications we have a world-class fiber optics networks which is relatively inexpensive and in fact cheaper than India .
Despite these hindrances we know that IT consulting businesses grow from word of mouth. So as your business grows and one customer after another likes your work, your business will grow.
Competition is going to be fierce from best buy type consultants to local independent consultants. But all businesses need an IT consultant – it’s a matter of who they choose.
Reference: THE REPORT :The Philippine 2008 by OXFORD BUSINESS GROUP