Source: The post India can build its own global consulting giants has been created, based on the article “India’s Big Four bet” published in “Financial Express” on 26th June 2025
UPSC Syllabus Topic: GS Paper 3- Effects of liberalisation on the economy, changes in industrial policy and their effects on industrial growth.
Context: India is exploring a major strategic shift to develop home-grown accounting and consulting firms that can rival global giants. This move aligns with the Atmanirbhar Bharat vision and is driven by the government’s belief that India’s talent, market size, and expertise can establish globally competitive professional service firms.
Understanding Global Dominance of the Big Four
- Post-war Expansion and Strategic Evolution: The Big Four — Deloitte, PwC, EY, and KPMG — grew alongside American and European multinationals after World War II. Initially audit-focused, they evolved into multi-disciplinary firms offering services like tax, strategy, technology, and human capital advisory.
- Shifting Revenue Models: In India today, audits contribute less than 20% of their revenue. Most of their income comes from advisory services, government projects, and tech consulting. They transitioned from compliance watchdogs to strategic business partners.
- Lessons from Their Journey: Their dominance was built on trust, scale, and diversified services. These elements now serve as reference points for Indian firms aiming to achieve global recognition.
Missed Opportunities and New Openings
- Overlooked During IT and Pharma Boom: When Indian IT and pharma firms globalised two decades ago, they sought international validation through the Big Four. Indian firms, even for domestic work, were sidelined, highlighting a lost opportunity for local professional services.
- Global Indian Firms Now Feasible: The question has shifted from if Indian firms can globalise to how fast they can seize this opportunity. The global credibility of Indian business must now extend to Indian professional service providers.
- A Proof of Concept: One Indian tax and regulatory firm has successfully expanded to the UAE, Singapore, and Saudi Arabia, serving major global multinationals. Its success shows that trust, niche focus, and outreach can fuel rapid international growth.
Replicating India’s IT Sector Success
- Learning from TCS, Infosys, and Wipro: These firms began as low-cost service providers and rose to become global consulting leaders. Their transformation holds key insights for professional service firms today.
- Three Pillars of IT Success
- Quality Benchmarking: Surpassed global standards, earning Fortune 500 trust.
- Strategic Scaling: Used global delivery centres and acquisitions.
- Branding: Gained recognition via thought leadership and global forums like Davos.
- Applying the Blueprint: These same strategies — quality, scale, and visibility — can empower Indian consulting firms to compete globally.
Key Actions for Indian Consulting Firms
- Adopt Global Standards and Technologies: Indian firms must invest in AI audits, ESG frameworks, and predictive analytics. Strong training and international governance practices will build trust and credibility.
- Achieve Scale through Strategic Moves: Fragmentation and small-scale mindsets limit growth. Indian firms need consolidation, partnerships, and shared leadership to achieve resilience and depth.
- Boost Visibility with Modern Regulations: Current ICAI restrictions on advertising and signage hinder visibility. Reforms can allow ethical promotion and help Indian firms compete globally.
The Government’s Enabling Role
- Institutional Support is Crucial: Like the 1990s IT push, India now needs government-driven initiatives to boost consulting firms, including financial, logistical, and regulatory support.
- Policy Suggestions
- Subsidies: For overseas market entry and infrastructure.
- Preferential Access: Government projects should favour capable domestic firms.
- Regulatory Clarity: Simplify rules on foreign ties and international mobility for Indian professionals.
- Time to Build the Ecosystem: India already has talent and scale. A supportive ecosystem is the final step to transform Indian firms into global leaders.
A Defining Moment for India
- Global Influence Through Indigenous Firms: The alignment of policy, ambition, and reform offers a unique moment. Indian firms can not only compete globally but also influence global norms and innovations.
- Acting with Urgency: This opportunity must be seized decisively. The next generation of global consulting giants can carry Indian names — shaping the future of professional services worldwide.
Question for practice:
Examine how India can build globally competitive consulting firms by learning from the success of its IT sector and addressing existing regulatory and structural challenges.
