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13 ways in which the McKinseys and BCGs differ from the Accentures and Sapients

saibal_sen.jpgAccording to one report, there are between 250,000 to 500,000 management consultancies in the world. Yet, as soon as we mention Management Consulting, immediately the ‘Big Four’ comes to mind. But what about the other consulting firms in the world? What kind of work do they do? What type of careers do they offer? What are their growth prospects? What do they look for in new hires? Guest Writer Saibal Sen dissects.

Before we get into any comparisons, lets define some categories. The big four are not necessarily big nor are there just four of them. For the sake of this discussion, lets say they are so called because of their reputation and type of high pr ofile work they do. Examples – McKinsey, BCG, Bain & Co, Mercer, Monitor Group etc.

So who are the others? They can be boutique consultancies ranging from a sole practitioner to around a dozen consultants. Then there are small consultancies that have between 10 to 50 consultants. Next are the medium consultancies employing between 50 and 500, and finally, the large consultancies that have 500+ consultants.

The table below gives you some comparative answers if you are thinking of a consulting career.

Comparison Between Consultancy Firm Types

Big Four

Large & Medium

Boutique & Small

Type of projects?

High profile strategy projects:

  1. Mergers & Acquisitions

  2. Transformation

  3. Cost Reduction

  4. Interim Management

  5. Restructuring

  6. Performance Improvements

  7. Product development

  8. Market entry strategies

  9. Brand building

  10. Audits

Domain specific projects:

Information Technology

  1. Needs assessment

  2. Systems Integration

  3. Information System Architecture

  4. Product or system selection

  5. Outsourcing

  6. Remote Operations

  7. Customizations

  8. Custom Software Development

Industries such as Manufacturing, Telecom, Energy etc. and horizontals such as HR, Legal, Accountancy etc.:

  1. Functional Outsourcing

  2. Needs Assessment

  3. Infrastructure building

  4. Process Improvements

  5. Quality Improvements

  6. Certifications

  7. Contract R&D

  8. KPO

  9. Contract Operations (BPO)

  10. Operational assistance

  11. New product development

  12. Staff augmentation

Niche specialties:

  1. Advisory in very specific areas such as bid management

  2. Project Management

  3. Training

  4. Interim management

  5. Conflict Management

  6. Market Studies

  7. Staff augmentation

  8. KPO

Industry Specialization?

No but they focus more on growth sectors

Yes

Yes and No

Source of business?

Direct contact with clients.

All relationship based.

Almost never any advertising

Starts with formal request for proposals or tenders. Follow on work from existing clients.

Advertising.

Relationship based. Participation in conferences, blogs, and media.

Mode of delivery?

Mostly onsite with back office research work being done in offshore locations (with limited success).

The current trend is 10 to 30% onsite and remaining offsite/offshore. Highly successful off shoring model.

Almost all onsite. Emerging in online work.

Challenges?

Rising salaries and costs. Finding good employees. They look for highly intelligent and hard working talent with open minds. It’s a rare combination!

Ability to respond to changing client needs. Culture needs to adapt to changing technology and ways of working.

Making the jump to the next level (growth).

Strengths?

Strong brand image. Business comes to them.

Scalability (but not necessarily efficiency).

Adaptability.

Work Environment?

High pressure, stimulating, near 100% travel,

Between 30 to 60% travel. Stimulating, more flexible compared to other jobs.

Highly unstructured, flexible, everyone is expected to sell.

Qualifications and attributes employers look for?

Top tier MBA. Outstanding capability for creativity and hard work. Very strong interpersonal skills for handling clients.

Masters level expected but can be substituted by industry experience. Creative, presentable and logical minded.

Graduate in any discipline. Self-starter, high degree of perseverance and an all rounder.

Intake Category?

80% fresher.

80% laterals. Either home grown or externals.

Either fresher or very senior.

Career growth prospects?

Partner at the firm. Entrepreneur, Venture Capitalist, or ends up as top management at a former client.

Senior managers, business unit or country heads, entrepreneurs or educators. Some can transition over to Big Four business development roles.

Possible to move to Big Four class at an early stage in your career. Start your own consultancy or become a senior manager at a former client.

Compensation?

High

Medium

Low or High

Profit Sharing?

Not usually

Stock Options

Ownership stake

Industry outlook?

Moderate growth after the economy improves. Medium firms are fast encroaching their space.

Fastest growth anticipated as client turn to vendors for end-to-end solutions. Around 30 to 50% growth anticipated.

Intense competition amongst small players. Ones with a unique model likely to do well.

Example firms?

McKinsey, BCG, AT Kearney, Bain & Co. Monitor Group, Booz Allen, Mercer, Arthur D. Little and several more. I suspect there are at least 50 reputed strategy firms.

IT –IBM, Accenture, CSC, Infosys, Wipro, HCL, Sapient and hundreds more.

Non IT – Bechtel, Mott McDonald, Babcock International, PA Consulting, L&T, Tata Engineers and hundreds more.

Cannot name them for privacy reasons but you can find them in several business directories. There are thousands of these.

So in conclusion, just the big four should not be your be all and end all in terms of career choice. Depending on your background, your aspirations and your competencies, you may well want to consider working for the other 250,000+ consultancies around the globe.

While “Big Four” offers high salaries and glamour, their hiring criterion is very stringent. But don’t dishearten yourself as a variety of interesting consulting projects are done by other thousands of consulting firms around the globe. In addition to that, more jobs will be created in small to medium consulting segment post recession.

If you feel that you have the potential to be creative and not afraid of high-pressure work, consider a consulting career. The salaries are high and your growth potential will be even higher.



Saibal Sen is the founder of ZENESYS, a professional services training organization. ZENESYS has trained hundreds of engineers in consulting skills at leading consulting organizations in India and abroad. ZENESYS also runs distance workshops for consulting certification. Saibal was formerly a management consultant at Arthur D. Little and founder of KUBER consulting in Boston MA. He can be reached at ssen@zenesys.org

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Comments (26)

Leave a Reply
punithkumar
#1 October 20, 2009, 4:53 pm

Good analysis, its a eye-opener for many……

Roger Federer
#2 October 20, 2009, 5:07 pm

Excellent Article , more of these kind would be appreciated

live2die
#3 October 20, 2009, 6:12 pm

Needed it. Right on time for me.

gallbladder
#4 October 20, 2009, 6:23 pm

welcome back Sir

Atul P Mishra
#5 October 20, 2009, 8:14 pm

thanx for such an “easy on the eye” explanation

shoaibmohamed
#6 October 20, 2009, 8:18 pm

thank you sir, u won’t believe how apt u chose the time to publish it… live2die will second it :) …..

Amit
#7 October 20, 2009, 9:15 pm

One thing left out in the article is that the engineering sector is completely driven by consultants such as Engineers India Limited, TCE consulting engineers , DCPL, Toyo engineering , UHDE , Petrofac , Jacobs , Mott Mac , J Ray Mcdermott, Worley parsons, technip, bechtel ( big daddy ),Flour , Atkins ,etc , etc.Some of these have strong process development capabilities ( esp. for refining/chemical sectors ) and are also into manufacturing . All refineries , power plants , infrastructure projects in india and abroad have one among these to manage the show – Select Tech/process licensee , Float tenders , select suppliers , project management , system integration , total EPC , etc.
These guys may not be as flashy as the big-4 , but work content and salaries at senior level are good enough.and of course you actually get to execute something rather than solely indulge in “thought leadership”.

Akshay Vannery
#8 October 21, 2009, 9:36 am

80% Freshers for BIG 4!!!! WooHoo!!!

shariq09
#9 October 21, 2009, 12:17 pm

Once again an amazing article, with so much practical sense in it.
thank you so much sir.

pranav@spjimr
#10 October 21, 2009, 12:56 pm

This is a very nice article. I have analysed these firms a lot during the course of my MBA and also had to opportunity to intern with one of the top consulting firms (close to Big 4) and I am currently working with a firm in the large segment. Regarding career choices, it is best for every person to look at his/her strength areas and target a relevant company. Dont select a Big 4 just because they pay more, or some other company just because you feel you have relevant experience.
Regarding freshers, the information is bang on target. Big 4 look for freshers with exceptional acads in graduation as well as MBA (usually only toppers would be interviewed by them). As an aspirant, if you are interested make sure that you crack into one of the top 10 B-Schools and perform very well there. Also prepare well for case based interviews.

lonewolf7
#11 October 21, 2009, 5:24 pm

sir,
i have recently been placed in deloitte as a technology consultant…
would like to know more about its work culture and growth opprtunities

#12 October 22, 2009, 3:47 am

Write chord strucked at right time!!What an apt. eye opener to look forward for the career seekers in MBA and beyond!! A true confession, most of them are still unheard in realms of non-metro cities..Such articles will input newer ways to gettin more closer to the target set in mind of cracking d big notch schools!!

Nikhil
#13 October 22, 2009, 2:09 pm

A decent article.. but strikes me as odd when you don’t mention any of the Big 4 consults(kpmg,pwc,delloitte and eny) as examples for the same :)

Mayank
#14 October 22, 2009, 3:27 pm

A very nice differentiation among the consultancy firms. It actually helps to decide what kind of job one would love to do.

Rgds,
Mayank

Rahul
#15 October 22, 2009, 4:20 pm

How can u not mention the BIG 4s like Deloitte, PwC, EY and KPMG?

SaibalSen
#16 October 23, 2009, 10:12 am

It is true that the big four term was originally coined for the large accountancy firms such as PwC, E&Y, KPMG and Deloitte. However, for pure play management consulting, the firms mentioned in this article are really the “big” names. I agree that I should have clarified that. Thanks for pointing it out.

Apurv Pandit
#17 October 23, 2009, 11:33 am

To add to Saibal, the “big 4″ in PwC, E&Y, KPMG and Deloitte is for the Auditing/Accountancy Business, and not consultancy. Yes, they do consultancy too, but that is not why the handle “big 4″ got attached to them.

jubinjct
#18 October 23, 2009, 6:47 pm

Why the preference to freshers for recruitment to ‘big 4′?- Is it due to any assumption that freshers are equally inclined to all sectors/areas?

SaibalSen
#19 October 24, 2009, 10:49 pm

@jubijnct A very good question. But your guess is not exactly the reason though close. Can anyone guess? There is a very good (and only one reason)?

suraj
#20 October 25, 2009, 8:17 am

Is it becoz of the fear of bias and prejudices with more experienced folks? Younder ones easier to be moulded into the Mckinsey way ?:)

MrAnderson
#21 October 25, 2009, 11:06 am

@saibal : may b coz of ROI frm freshers … more energetic ,enthusiastic at comparable less salaries ..

ndhankhar
#22 October 26, 2009, 12:09 am

Very nice analysis, great dude. keep doing it.

SaibalSen
#23 October 26, 2009, 6:07 am

@ Suraj. Well done! Yes that is the number one reason.

#24 November 03, 2009, 4:24 pm

Thanks for sharing this wonderful article. This article is truly helpful in understanding various features and operation types of companies.

starwalker
#25 March 27, 2010, 12:45 pm

I appreciate the efforts taken by the author to give such a valuable piece of information for graduates/laterals looking to break into Management Consulting. It proves to be a eye-opener for many. Well done. Keep up the good work.

Do Big 4 Audit firms fit into the category of “Big Four” as mentioned in this article ?

vinay
#26 June 09, 2010, 1:32 am

where do the likes of KPMG, PwC, Deloitte etc.. fit in then??

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