New Delhi: Propelled by increasing demand for consultancy services, both for domestic and foreign firms, a study by Assocham pegs the consulting sector in India to grow at an annual rate of 30 per cent, progressing rapidly towards becoming a Rs17,000-crore industry.

Presently, the consulting industry in India reportedly stands at Rs13,000 crore.

In a paper titled Opportunities for Consultancy, Assocham says tat opportunities for these services multiply in a booming economy, and the growing demand would see 28-30 per cent growth in the sector, virtually guaranteeing that the sector touches Rs17,000 crore by 2010.

Of interest is the fact that most domestic consultancy organisations are supported, either directly or indirectly, by nearly 2000 R&D institutions and laboratories, which work as virtual ancillaries delivering cost advantages.

Conversely, in developed economies, access to R&D centres to consultancy firms is not a source of cost advantage.

Reportedly, 2.2 lakh people would be working in this sector over the next three years, in jobs created by 8500-9000 consultancy firms across India. Their areas of expertise would range from engineering, designing, financing, auditing, and hospitality.

According to the Assocham study, professional competence, low cost structure, diverse capabilities and adaptability are the main areas where Indian consultants score over global peers.

According to Assocham president Venugopal Dhoot, the US, the UK, Japan, China, Saudi Arabia and Gulf nations acknowledge the competence of Indian consultancy firms, with demand growing in the EU as well. He cited the competitive edge of these firms over their counterparts in the ASEAN countries as the reason for their preferred status. Indian consulting companies have strong capabilities in areas like civil engineering, telecom, power, metallurgy, chemical and computer software.

Some of the other key findings of the report included:

• Kolkata is a lead centre for the expansion of consultancy services.
• Increased networking opportunities will lead to higher levels of standardisation, boosting consultancies.
• Key strengths: Professional competence, low cost structure, diverse capabilities, high adaptability and quick learning capability of Indian consultants and
• Key weaknesses: Low quality assurance, scant overseas presence due to lack of intensified market intelligence
• Services provided include feasibility and market studies, erection and commissioning of plant and machinery, system designing etc.