How did the Consulting Giants help India during the Covid-19 Pandemic?
- 180dcdrcblogs
- Nov 25, 2021
- 4 min read
The Cost of the Crisis
Covid 19 has infected 3,36,23,072 lives, robbed 4,46,690, and 3,28,68,772 people have triumphed from the pandemic in India alone. Numerous lives have been directly or indirectly affected by this haunted virus. Hardly any industry escaped a downfall owing to the coronavirus outbreak yet the airlines, tourism, and film industries were arguably the worst-hit sectors.
The consulting sector is no exception to it. Research suggests that the global management consulting industry could have witnessed a 19% loss in market value, and the revenue loss could be worth $30 billion in 2020. Businesses facing a downfall could’ve used consulting services to survive the crisis even so they preferred investing the existing funds in continuing their operations. On the contrary, although the Healthcare Industry was experiencing a heavy load during the pandemic, it was forthcoming to seek consulting expertise to get a grip on such situations.
Conventionally, Management consulting firms largely depend on travel and in-person meetings with clients. Despite body language and eye contact having a crucial role in these services, traditional ways of operating could no longer serve the purpose and called for innovation and adaptation to the post-pandemic reality.
The response to the pandemic was different across the globe, for instance, in Europe, many countries witnessed severe effects, and consulting assignments were put on hold whereas, in regions like Africa and the Middle East with relatively milder impact, the industry was relatively unaffected. The economic slowdown had a detrimental effect on the consulting firms’ revenues as numerous projects got obstructed or had their scope reduced or terminated altogether.
Cooperation of Consulting Firms and Governance in India
McKinsey and Co.
With the onset of covid-19 in India, McKinsey and company offered their consultancy services to the government to mitigate the crisis and build frameworks for the economy and resources niche. The consulting giant advised NITI Aayog, the Ministry of Finance, and the state government of Maharashtra. The firm has been praised globally for its economic expertise and assistance to private and public organizations. Coming to crisis management, McKinsey left no stone unturned and developed a digital dashboard that enables coordination between several databases in various formats. A consolidated database was particularly helpful in dealing with Covid-19 data and the study and analysis of it.
Boston Consulting Group
BCGs expertise lies in providing strategic advice to governments and businesses on management solutions. The firm was diligently involved with the Health Ministry. They initiated advisory suggestions considering it their responsibility towards society and talked about nation-building as a core element of their firms' purpose. BCG assisted the government of Karnataka in attracting investors by regulating its monetary frameworks. The sectors touched upon during the pandemic were wide-ranging and involved economic development, defense, security, reskilling workforce, and education.
Kearney
A.T. Kearney conversely was involved in infrastructure development amidst the pandemic. Kearney also suggested the need for sharing services to be disseminated in the Indian markets as a strategy for economic growth. According to the firm, public services showed signs of increased adoption of shared services in their efforts to deliver quality services in the face of cost and talent challenges. As organizations target rural markets for the next wave of growth, shared services could increase reach and help build capabilities, for example, by aggregating services across companies.
EY
When talking about aiding central and state governments, EY would bag the number one position. More than 17 central ministries are currently consulting EY teams, alongside 19 state governments. EY has been assisting in matters of infrastructure, health, and crisis management to name a few. An article by National Leader for Government & Public Sector services at EY India, Gaurav Taneja, suggested how a digital government would ensure better connectivity with the citizens. Citing an example he explained that with the onset of the COVID-19 pandemic, Indians were looking to the government and the healthcare system to protect their lives and livelihood, putting a lot of pressure on the public service delivery system. The suggestion was the need for government intervention to balance economic and social constraints in ways that led to better outcomes for the citizens. They advised a manner of attaining this was by gaining perspective on how the citizens view their lives and what they feel about the existing environment.
The Road Ahead
TCS had suggested ways in which management consulting firms could realign their business strategies:
1. Better crisis management
Companies that will successfully minimize the business impact in the aftermath of COVID-19 would emerge as winners. Some businesses may want to display a deviation from the ubiquitous rules and methods to handle the crisis. For instance, several companies amended their remote work and travel policies in response to the lockdowns.
2. Agility in inspection and adaptation
The new normal requires companies to be a little more agile in adapting their business strategies to the changing market and customer needs. Many industries, including consulting, are likely to turn their approaches away from globalization and favor a more local approach to drive business growth.
3. Accelerating the pace of digitalization
While many industries are switching from remote working with reduced or no travel, consultants, believed to be the pioneers of remote working, while having a distinct advantage. They can help clients adapt to the changing work needs, increase adoption of digital platforms, boost engagement, and establish a digital-first culture with the clients.
4. Leveraging innovation to revamp strategies
Historically, crises have bred innovation. Hence, the pandemic might end up changing how companies gain success, as they will struggle in getting resources that organically drive innovation. Those who encourage innovative approaches by identifying new opportunities, building a foundation for growth, and acting on those recommendations in the post-crisis environment will assuredly be thriving and help in prosperity.
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