With burgeoning revenue streams and a conducive business environment, Asia-Pacific’s consulting businesses are seeing a spurt in growth, cross $50B mark, IT and management consulting lead the front
Around 60% of the total population of the world lives in Asia Pacific region. The region produces around $28.2 trillion of the total GDP per year and the numeric figure is growing rapidly which is also responsible for its rapid growth. The power house of the region – China contributes almost 40% of the total GDP produced by Asia Pacific region, which depicts its economic dominance over the region. In terms of economic output, Asia Pacific is larger than the US, Germany and the UK combined.
The consulting industry of the Asia Pacific is growing with a high speed, indicating a huge scope for industry development in the near future. It is estimated that in the previous four years the industry in the region is growing by over 6% every year. The forecasted growth of the industry in the next year is estimated around 7%. With such a spectacular growth, the investment on management consultants in the Asia Pacific region has reached above $50 billion. North America remains the globe’s largest marketplace for consultants, with estimated worth $152 billion. The US holds around 90% of the total market of the North America.
The region covers the East, South and South East Asia, Oceania countries, and a number of pacific island nations across Micronesia, Melanesia and Polynesia. There are around 50 countries in the region as well. As the region is diverse, so is the market – in terms of size, structure and maturity. Japan and Korea being the largest markets contribute about 44% of the total market, followed by China which contributes around a fifth of the total market. Third largest market by region is Australia and Polynesia which includes the developed markets like New Zealand and Australia.
Strategy and Operations are the largest services sold to clients, while IT and digital consulting services remain the second largest and account for nearly one-fourth of Asia Pacific’s consulting industry. The IT Consulting firms are flourishing in the region because of the rapidly expanding IT consulting Industry. Indonesia based SLJ Global, Singapore based Bhavyam Infotech and Malaysia based SKP Resources are some of the IT consulting firms that are extending their consulting services in their regions.
Although, there are some concerns about the oversaturation of the market, the Asia Pacific region continues to experience good demand for their services. The overall market is expected to boom even more. Countries like Vietnam are experiencing something of a mini consulting boom aligned with the strong economic growth. Finding and retailing talent is another big challenge in consulting markets around the world, specially in the Asia Pacific region. If these challenges are handled with due diligence, consultants believe that in the coming years the market is expected to grow exponentially.