By Barry Curnow, Jonathan Reuvid
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Additional info for The International Guide to Management Consultancy: The Evolution, Practice and Structure of Management Consultancy Worldwide
The emergence of the second generation McKenna C D (1995) The origins of modern management consulting. Business and Economic History 24(1) Fall: 51–8 The emergence of the third generation Suddaby R and Greenwood R (2001) Colonizing knowledge: commodification as a dynamic of jurisdictional expansion in professional service firms. Human Relations 54(7): 933–53 The main service providers of the different generations Higdon H (1969) The Business Healers. New York: Random House O’Shea J and Madigan C (1997) Dangerous Company: The Consulting Powerhouses and the Businesses They Save and Ruin.
Together with the original Bedaux consultancy, renamed Associated Industrial Consultants (AIC) in 1938, they became known as the ‘Big Four’. In 1956, when they founded the Management Consultants Association (MCA), they employed over 800 consultants and accounted for more than three-quarters of a total market estimated at £4 million. In its annual report for 1961, the MCA estimated that the revenue of its member firms had increased by more than 10 per cent per annum over the previous decade. It should be noted that these consultancies were not successful in all countries.
Many companies who went public were now reducing rates to keep the top line from falling (under the assumption that this was what Wall Street wanted); competition was becoming cut-throat. Perhaps most significant of all, however, was the rise in prominence and capability of Indian offshore firms. With names such as Tata, Wipro and Infosys, these outsourcing and systems integrations firms had cost advantages of roughly 3:1 over Western firms. These firms are called 36 The evolution and practice of management consultancy globally offshore firms because they do much of their work in India, away from the client site.
The International Guide to Management Consultancy: The Evolution, Practice and Structure of Management Consultancy Worldwide by Barry Curnow, Jonathan Reuvid