Location Disparity In Consulting

Over the past years the global consulting market has booked year on year growth,
although growth rates differ between the more mature markets and emerging economies.
With a total value of around $250 billion, the global consulting sector is one of the largest
and most mature markets within the professional services industry.

An analysis of the past five decades shows that the development of the consultancy
industry is closely tied to the developments of the global economy. In times of flourishing
economic conditions, organisations enjoy higher revenues and budgets, a setting which
paves the way for higher spending on consultants. Vice versa, economic downturns
typically sees organisations shrink their spending behaviour, which leads to budget cuts
of, among, others, consulting expenditures.

Between the 1970s up the 1990s the global consulting market grew every single year,
despite the two recession periods (early 1970s and 1973-1975), fueled by high demand
for strategic services and operational management. In 2002 the sector for the first time
in decades faced a contraction, followed by an even larger downturn between 2009 and
2011, in the slipstream of the global financial crisis.

In 2011 the consulting industry was valued at $205 billion, and since the market has
grown with an average Compound Annual Growth Rate (CAGR) of 4.1% to a value of
$251 billion in 2016*. The largest segment is Operations Consulting, which accounts for
nearly 30% of the market, followed shortly by the Financial Advisory segment. Strategy
Consulting the most prestigious segment in the industry represents less than 15% of
the market, and is, in terms of size, comparable to the HR Consulting domain.
Technology Consulting, also referred to as IT Consulting, holds a 20% share of the
overall market
Here we can see overall growth , but the overall growth of an industry is not a very accurate
measure of a particular player within that industry . Growth of an industry is always
consolidated data . To understand the changes and volatility associated with particular
companies , we need individual data . Here we tackle not the industry , but the market .
To try and gauge the impact that location has in the salary offered to the consultant .

Country Min Average Max

United Kingdom 30882 48790 74561
China 15416 30833 78787
United States 50020 92564 144356
India 9432 13750 14231
Singapore 46752 71750 112345

Upon our analysis of the salaries given , we can clearly see that : There is a huge difference
between the salaries across the countries . While the United States max salary is over 140,000
. We see that the maximum salary noted in India is 14000 . Here we see that the difference in
location corresponds to an exponential difference in the salary received despite the job profile
being the same fundamentally the same . The domain plays a role with IT and Management
consulting taking the cake with 18% significance of the money in the industry going into IT .
and 22% going into corporate finance based management consulting . A depiction of the
average salaries is shown as a bar graph chart below :

Chart Title
100000
90000
80000
70000
60000
50000
40000
30000
20000
10000
0
United Kingdom China United States India Singapore

Column1 Series 2 48790

From the given Chart we can see that the average salary in the United States is significantly
higher than the given countries . With India being one of the lowest . This shows that despite
an eminent and promising market , there is a huge disparity in the kind of payment a
consultant receives for their services which is significantly associated with their location .
This supplements the fact that foreign markets are a more ideal option compared to domestic
which will affect the extent of individuals in the domestic and international workforce .

https://www.glassdoor.co.in/Salaries/china-consultant-salary-
SRCH_IL.0,5_IN48_KO6,16.htm
http://www.consultancy.uk/consulting-industry/global