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GLOBAL CONSULTING MARKET

Table of Contents

▪Industry Landscape 3–8

▪Competitive Positioning 10–17

▪Opportunity Assessment 19–20

▪Appendix 22

The consulting industry consists of five main functional areas—Operations, Strategy, Financial

Advisory, Human Resources (HR) and Technology

MARKET STRUCTURE

Source: Consultancy.uk

Process Management

Supply Chain

Procurement

Finance Operations

Outsourcing

Project Management

Corporate Strategy

Economic Policy

Mergers & Acquisitions

Organizational Strategy

Functional Strategy

Corporate Finance

Restructuring

Actuarial Services

Risk Management

Real Estate Advisory

Forensics & Litigation

Organisational Change

HR Technology

Learning & Development

Benefits & Rewards

Talent Management

IT Advisory

ERP Implementation

Data Analytics

Application Development

Systems Integration

Enterprise Architecture

Technology

Operations Technology Technology TechnologyTechnology TechnologyHR

Financial

Advisory

Strategy

CONSULTING

INDUSTRY

Digital Transformation Consulting

• Business &

Organisational Impact

• Change Management

• Creativity and

Innovation

• Customer

Experience Design

• Legacy & Backend Integration

• Infrastructure & Security

Strategy Design

Technology

Digital

Transform-

ation

The Middle East followed by Asia Pacific, registered the highest growth rates in 2017 as these

regions typically comprise countries that are at low–medium level of maturity

REGION SUMMARY

Source: RocSearch Analysis

Market Size and % share

of consulting market in

2017

Market Maturity

High

Medium

Low

Growth in 2016–17

x-x%

North America Europe

Latin America

Africa

Middle East

Asia Pacific

x-x%

Global consulting market has grown at a CAGR of xx% during 2011–16, with Asia-Pacific being

the fastest growing region, primarily due to accelerated growth of Chinese consulting market

MARKET SIZE AND SEGMENTATION – GLOBAL

Source: Consultancy.uk

Note: 1) Europe, the Middle East and Africa

xx xx xx xx xx xx

2011 2012 2013 2014 2015 2016 2017 2019

Strategy Operations Financial Advisory HR Technology

• Digital and business model disruption has primarily been the driving factor behind the growth of consulting globally, particularly in more mature markets

• Due to increasing globalisation, companies require more sophisticated and internationally oriented services, thus increasing demand for management consulting services

• Asia Pacific had the highest growth momentum with a CAGR of x% during 2012–16, while the EMEA region and North America grew at a CAGR of about x% during 2012–16, on an average

xx xx xx xx xx xx

Financial Advisory Operations Technology HR Strategy

EMEA North America Asia Pacific Others

CAGR

(2011–16)

CAGR

(2012–16)

Global Consulting Market – By Value (USD bn, 2011–2016) Global Consulting Market – By Function (%, 2016) Global Consulting Market – By Region (%, 2016)

In 2017, the global digital transformation market almost xx in size as against 2016

MARKET SIZE AND SEGMENTATION – GLOBAL

Source: Consultancy.uk

Note: 1) Europe, the Middle East and Africa

Other Services

Strategy

Technology

Australia

•In 2017, the global digital transformation market accelerated to USDxx bn, from USDxx bn in 2016, increasing by ~xx%

• Increasing demand to digitise among most large businesses, and need to fight off challenges from new digitally savvy competitors, is expected to provide a major opportunity for consultants to grow their

revenues

─Top strategy firms, such as AA, BB and the CC, have invested heavily in their digital lines in anticipation of this

─Irrespective of breadth of services provided by tier-1 consulting firms, tier-2 and tier-3 firms are also preferred due to their flexibility and cost-effectiveness for the client

Deloitte Accenture McKinsey KPMG, PWC & EY Others

% of countries’

total consulting

market

Digital Transformation Consulting – By Segments (USD bn, 2016) Digital Transformation Consulting – Market Share (%, 2016) Digital Transformation Consulting – By Region (USD bn, 2016)

Eastern European consulting market represents is the bright spot in Europe having posted a

xx% CAGR during 2010–16, compared with the region averaging xx% CAGR during the period

MARKET SIZE AND SEGMENTATION – EUROPE

Source: Consultancy.uk; consultancy.eu

• The UK, Germany and France, respectively, are individually the largest markets, though these being mature economics, their growth during 2010–16 was slightly lower than the average CAGR for Europe

─During this period, consulting market in Eastern Europe grew two-folds compared with Western Europe

• Financial Advisory plays a much larger role in the UK, attributed to its large financial sector; in contrast, a number of services offered by financial consultants in the UK are commonly performed by local

lawyers and accountants in the DACH region

• As Eastern Europe largely comprise emerging economies, the share of operational consulting is relatively much higher compared with other functions

xx xx xx xx xx xx xx

2010 2011 2012 2013 2014 2015 2016

Scandinavia Benelux Southern Europe DACH Region

Eastern Europe France UK & Ireland

xx xx xx xx xx xx xx

CAGR

(2010–16)

Scandinavia

Benelux

Southern

Europe

DACH

Region

Eastern

Europe

France

UK &

Ireland

Technology HR Financial

Advisory

Operations Strategy

European Consulting Market – By Region (USD bn, 2010–2016) European Consulting Market – By Function (%, 2016)

Note: 1) D — Deutsch (German), A — Österreich (Austria), CH — Schweiz (Switzerland)

Germany, China, Saudi Arabia, India, the UK and US are among the fastest-growing markets for

consulting services

RELATIVE COUNTRY BENCHMARKING

Source: consultancy.uk; consultancy.eu; consultancy.asia; consulting.us; Barnes Report 2017

Note: 1) Market assessment criteria are covered in the appendix section; (continued in slide notes)

Country Name1Region Consulting Market Size

(USD,2016)

Growth

(%, 2015-2016)

Digital Evolution Index

Score 20172

Ease of Doing Business

Ranking

Number of Management

Consulting

Establishments

ICT Development Index

Ranking3

The US North America xx xx 3.61 6 xx 15

The UK Europe xx xx 3.67 7 xx 5

Germany Europe xx xx 3.36 xx xx xx

China Asia Pacific xx xx 2.49 xx xx xx

France Europe xx xx xx xx xx xx

Australia Asia Pacific xx xx xx xx xx xx

Romania Europe xx xx xx xx xx xx

India Asia Pacific xx xx xx xx xx xx

Spain Europe xx xx xx xx xx 27

Italy Europe xx xx xx xx xx 46

Saudi Arabia MEA xx xx xx xx 17,499 xx

The Netherlands Europe xx xx xx xx 6,838 xx

Singapore Asia Pacific xx xx xx xx 2,793 xx

Brazil Latin America xx xx xx xx 87,515 xx

Sweden Europe xx xx xx xx xx xx

Bulgaria Europe xx 2xx xx xx xx

Denmark Europe xx 4xx xx xx xx

UAE MEA xx xx xx xx xx xx

Norway Europe xx xx xx xx xx xx

Belgium Europe xx xx xx xx xx xx

Finland Europe xx xx xx xx xx xx

Qatar MEA 0.33 xx xx xx xx xx

Kuwait MEA 0.18 xx xx xx xx xx

Oman MEA 0.1 xx xx 71 xx 64

MARKET ATTRACTIVENESS:HIGH MEDIUM LOW

Table of Contents

▪Industry Landscape 3–8

▪Competitive Positioning 10–17

▪Opportunity Assessment 19–20

▪Appendix 22

Source: RocSearch Analysis

Tier-2 and tier-3 firms provide increased service flexibility, and prove to be cost-effective for

their clients

COMPETITIVE SCENARIO

Suppliers with diversified service line and

geographic capabilities

Suppliers with limited service line

and geographic coverage; mid-

sized companies (medium

revenues)

Suppliers with niche

capabilities or

operations in a

specific geography

Fee

Level

Geographic

Reach

Breadth

of Service

Offerings

Team

Structure Overhead

Buyer

Negotiation

Power

Pyramidal

with junior

associates

Gamut of

services

within their

chosen

area

Pyramidal

with very

few fresh

hires

Focused

on service

line

Boutiques

do not

employ

fresh hires

Key Attributes

High Medium Low-Med Low

Global Players Overview

Spain

# x

Sources: Consultancy.uk; consultancy.eu

Note: 1) Many of the fastest growing firms listed above have ‘Technology Consulting’ and ‘Digital Transformation’ capabilities

Tier-2 and tier-3 players recorded higher growth rates during 2015–17 than tier-1 consulting

companies

INDUSTRY HEALTH ASSESSMENT

France

# x

2.3

2.8

3.4

4.7

5.0

7.7

11.5

14.5

15.4

16.0

10%

-4%

12%

11%

Revenue – Consulting Business

(USD bn, 2016)

Revenue Growth

(%, 2015–16)

10%

11%

Market Share

(2016)

3,2

2,2

60,

000

14,

000

23,

000

30,

000

1,3

40,

513

46,

000

Employees

(2016)

411,000

Europe's thirty fastest-growing consulting firms

achieved an average CAGR of xx% during

2015–17

xx%

# x

#Number of Consultancies in Top 30

CAGR (2015–17)

Average Full-time Equivalent (FTE) Increase (2015–17)

Largest Global Consulting Firms Europe’s Fastest-Growing Consulting Firms

Germany

# x

Sources: RocSearch Analysis

XYZ is likely to be advantageous over tier-1 firms on certain parameters such as cost

effectiveness, turnaround time and flexibility

KEY DIFFERENTIATORS

COST EFFECTIVENESS TURNAROUND TIME INVOLVEMENT OF SENIOR

STAKEHOLDERS FLEXIBILITY

AGILITY EMPLOYEE COORDINATION REGIONAL FOCUS BREADTH OF SERVICE

SPECIALISATION CAPACITY BRAND AND REPUTATION SCALE OF TASKS

PARAMETERS WITH RESPECT TOXYZ

HIGHLY FAVOURABLE MODERATELY FAVOURABLE NOT FAVOURABLE

XYZ has advantages in terms of cost-effectiveness, turnaround time and involvement of senior

stakeholders

KEY DIFFERENTIATORS

PARAMETERS TIER-1 PLAYERS XYZ DESCRIPTION

Cost Effectiveness   • Tier-1 companies have significant overhead costs, and thus are likely to charge higher prices for consulting, compared with

XYZ, that has a more competitive pricing

• Start-ups or smaller clients are more likely to hire XYZ, attributed to its cost effectiveness

Turnaround Time  

• Expertise based consultants at XYZ can utilise their knowledge and competency to quickly gain traction on new projects

• On the other hand, new projects may require a steep learning curve for less experienced consultants at large firms, which can

lengthen the time needed for project completion

• Clients are likely to hire XYZ for a shorter turn-around time project, as the larger firms are more inclined towards a long-

duration engagement

Involvement Of Senior

Stakeholders  

• XYZ has a larger involvement of senior stakeholders throughout the project, that is likely to improve the overall quality and

analysis

• With a large firm, there is a possibility of having the project delegated to junior employees who have less experience, unless

the client is a top brand with a large budget

Regional Focus  

• Though tier-1 players have a larger pool of consultants and serve more geographies, technological advances have led to

conducting presentations, interviews, virtual workshops and most other activities with thousands of participants around the

globe

• However, there are instances when clients need simultaneous geographic reach, which might become difficult for a region-

focussed firm

Breadth Of Services/

Specialization   • Tier-1 firms have a larger pool of services compared with the tier-3 firms

• Niche consulting firms usually focus on specific industries or business problems, thereby offering in-depth expertise in

particular areas

Capacity   • In lieu of on-going projects, tier-3 firms may not be able to accommodate a new project efficiently, due to their limited capacity

of professionals working on it

Sources: RocSearch Analysis

Agility and employee coordination can make XYZ preferred over other big consulting firms

KEY DIFFERENTIATORS

Sources: RocSearch Analysis

PARAMETERS TIER-1 PLAYERS XYZ DESCRIPTION

Digital Transformation  

• Tier-1 companies are focussing more on digital transformation consulting by expanding their services portfolio and acquiring

technology firms, and have also established separate digital brands such as BB Digital, Deloitte Digital or Bain Digital

• The big Four have acquired about 185 consulting firms during 2014–17, of which a half are active in the technology/digital

space

• However, niche consulting firms are also focusing on Digital Transformation to hold on to the market demand

Flexibility And Innovation   • Smaller tier-3 consulting firms, such as XYZ are able to target their efforts and tend to be more flexible

• By utilising their proficiency in specific subject areas they are likely to resolve issues more creatively

Brand & Reputation  

• Larger firms, such as the Big Four have an advantage in terms of their brand image, and are likely to win more business based

on this parameter, compared with the smaller tier-3 and boutique firms

•

Sometimes clients need a brand label associated with themselves to shore up their confidence when presenting to the board or

to make their recommendations reliable

Agility   • For XYZ, it will take a lesser time to alter ideas and processes throughout the entire consulting staff, in contrast to a bigger tier-

1 firm

• For a tier-1 firm, the process can be time consuming and expensive

Employee Coordination   • XYZ’s consultants tend to work cooperatively rather than competitively, thereby producing synergies from collaboration

• In a smaller firm, employees usually work one-on-one or with a small consulting team, hence improving quality

Scale Of Tasks For A

Project   • Some projects require a larger work-force to get tasks done, for e.g., for commoditised implementation projects such as

implementing a new IP system or focus group sessions with about 2,500 people around the globe

• Larger firms are likely to be advantageous in such a scenario, due to their extensive capacity

The highest rates in the industry are charged by the ‘xx’, whereas the ‘yy’ offer lower fees for

some services, attributed to large variation in their fee structure

FEES AND RATES (1/3)

Source: Consultancy.uk

xx xx xx xx xx xx xx xx

Number of Consultants

Average Revenue per Consultant (USD thousand per year)

Independent Contractors

National/

Regional

Functional

Specialists

Strategy

Boutiques

Global Functional

Specialists

Global Strategy

Firms

Small & Mid-sized

technology players Mid-sized

Accountants

Global Technology

Firms

Big Four

• Highest rates in consulting are charged by ‘Global Strategy

Consulting Firms’, such as BB, CC, BB, DD, YY and AA

─They are followed by ‘Strategy Boutiques’ that have a national

or regional focus

• ‘Global Functional Specialists’, such as XX, AB, AC, AD and AE,

typically have revenue/consultant between USD xx–xx per year

• Strategy and management consulting practices of the ‘Big Four’

are at the top-end of their fee model, whereas lower hourly rates

are billed by lower-value-adding services, such as accountancy,

audit or operational disciplines within IT Consulting

• ‘National / regional functional specialists have rates similar to the

Big Four, although their exact fee structure depends on their

reputation, functional focus and service portfolio

• ‘Mid-size Global Accountants’, such as A, B and C, have varying

rates compared to technology players, because of a full suite of

service offerings, varying from accounting and tax to consulting and

corporate finance

• ‘Global Technology Firms’ focus on IT Consulting services and

include players such as X, Y and Z

• Annual fees of ‘Independent Contactors’ range from USDxx

a year (for operational support) to about USDxx

(for executive consultancy)

Consulting Fee Analysis1

Note: 1) The figure uses the revenues per consultant per annum as a proxy for average rates and the number of consultants as a proxy for firm size

Tier-2 and tier-3 consulting firms are able to maximise billing flexibility due to lower overheads

and other expenses compared with tier-1 companies

FEES AND RATES (2/3)

Source: RocSearch Analysis

Note: 1) The rates are ‘rack’ rates or pre-discount rates for tier-1 consulting firms; final rates depend on buyer’s negotiating power, project duration and competitiveness of suppliers in that region

Tier-1 US Management Consulting Average Billing Rates (USD/hour) – 2018

Service Line Partner Director Senior Manager Manager Senior Consultant Consultant Analyst

Strategy xx xx xx xx xx xx xx

Operations xx xx xx xx xx xx xx

Finance (BAS) xx xx xx xx xx xx xx

HR Consulting xx xx xx xx xx xx xx

Tier-2 US Management Consulting Average Billing Rates (USD/hour) – 2018

Service Line Partner Director Senior Manager Manager Senior Consultant Consultant Analyst

Strategy xx xx xx xx xx xx xx

Operations xx xx xx xx xx xx xx

Finance (BAS) xx xx xx xx xx xx xx

HR Consulting xx xx xx xx xx xx xx

Tier-3 US Management Consulting Average Billing Rates (USD/hour) – 2018

Service Line Partner Director Senior Manager Manager Senior Consultant Consultant Analyst

Strategy xx xx xx xx xx xx xx

Operations xx xx xx xx xx xx xx

Finance (BAS) xx xx xx xx xx xx xx

HR Consulting xx xx xx xx xx xx xx

US Management Consulting Billing Rates1(2018)

Tier-2 and tier-3 consulting firms are able to maximise billing flexibility due to lower overheads

and other expenses compared with tier-1 companies

FEES AND RATES (3/3)

Source: RocSearch Analysis

Tier-1 UK Management Consulting Average Billing Rates (USD/hour) – 2018

Service Line Partner Director Senior Manager Manager Senior Consultant Consultant Analyst

Strategy xx xx xx xx xx xx xx

Operations xx xx xx xx xx xx xx

Finance (BAS) xx xx xx xx xx xx xx

HR Consulting xx xx xx xx xx xx xx

Tier-2 UK Management Consulting Average Billing Rates (USD/hour) – 2018

Service Line Partner Director Senior Manager Manager Senior Consultant Consultant Analyst

Strategy xx xx xx xx xx xx xx

Operations xx xx xx xx xx xx xx

Finance (BAS) xx xx xx xx xx xx xx

HR Consulting xx xx xx xx xx xx xx

Tier-3 UK Management Consulting Average Billing Rates (USD/hour) – 2018

Service Line Partner Director Senior Manager Manager Senior Consultant Consultant Analyst

Strategy xx xx xx xx xx xx xx

Operations xx xx xx xx xx xx xx

Finance (BAS) xx xx xx xx xx xx xx

HR Consulting xx xx xx xx xx xx xx

UK Management Consulting Billing Rates1(2018)

Table of Contents

▪Industry Landscape 3–8

▪Competitive Positioning 10–17

▪Opportunity Assessment 19–20

▪Appendix 22

M&A strategy, digital transformation advisory, and AI and automation implementation strategy

services are potential candidates for service extension for XYZ

OPPORTUNITY ASSESSMENT

Source: RocSearch Analysis

Note: 1) The mentioned capabilities have been aggregated from the companies that have been top-ranked on the basis of differentiated service offerings

2) The analysis is based on our understanding of XYZ’s capabilities

Product

Strategy

Marketing &

Sales IT Advisory Data Analytics

Growth

Strategy

Mergers &

Acquisitions

Organizational

Strategy

Industry

Analysis

Systems

Integration

Application

Development

ERP

Implementation

Process

Re-engineering

Target Operating

Model

Operational

Platform Streamline

CRM Strategy

Cyber Security

Strategy

Cloud Strategy

Enterprise

Architecture

Client-customised

Analytics

Analytics Strategy

Business

Performance

Product

Development

Product Positioning

Brand Strategy

Target Customer

Analysis

Pricing Strategy

Channel Strategy

Marketing Strategy

Sales Force

Effectiveness

Organic Growth

Planning

New Market Entry

Target Identification

Due Diligence

Integration

Planning

Post-Merger

Integration

Exit Support

Organisational

Design

Regulatory

Strategy

Corporate

Governance

Talent Retention &

Development

Industry Analysis &

Insights

Competitor

Benchmarking

Market & Revenue

Pool Sizing

Economic Policy

CORPORATE

STRATEGY TECHNOLOGY/ DIGITAL

SERVICES

DIGITAL STRATEGY/ TRANSFORMATION

Digital Readiness

Assessment

Digital Governance and

Sustenance

AI and automation

implementation strategy

Digital Transformation

Advisory

Digital Supply Chain

Transformation Enterprise Blockchain

Strategy

SERVICES WITH RESPECT TOXYZ

EXISTING CAPABILITIES QUICK WINS

Product

Segmentation

All of the XYZ’s existing operational locations are among the identified high potential markets;

other potential expansion markets in Europe includes France, Spain and rest of Nordics

OPPORTUNITY ASSESSMENT

Source: consultancy.uk; consultancy.eu; consultancy.asia; consulting.us; Barnes Report 2017

Note: 1) Recommended markets for geographical expansion are the ones assessed highly attractive “marked in green” in at least three of the parameters in the relative company benchmarking section

•France

•Spain

•Denmark

•Sweden

•Norway

•Australia

•UAE

Suggested Markets for Expansion Suggested Markets for Geographical Expansion

High Potential and Suggested Markets for Expansion

Other Markets with XYZ’s Operational Presence

XYZ’s Current Office Locations

High Potential Market with XYZ’s Existing Operations

UAE

Denmark

Singapore

Table of Contents

▪Industry Landscape 3–8

▪Competitive Positioning 10–17

▪Opportunity Assessment 19–20

▪Appendix 22

Approach for Relative Country Benchmarking

APPENDIX – APPROACH FOR RELATIVE COUNTRY BENCHMARKING

ATTRACTIVENESS TO INVEST HIGH MEDIUM LOW

INDICATORS AND RATING CRITERIA

GROWTH RATE (%) > 7 3–7 <4

DIGITAL EVOLUTION INDEX SCORE1> 3 2–3 <2

EASE OF DOING BUSINESS RANKING Up to 49 50–99 >99

# OFMANAGEMENT CONSULTING ESTABLISHMENTS >100,000 10,000–99,999 <10,000

ICT DEVELOPMENT INDEX RANKING2Up to 49 50–99 >99

Definitions:

1. Digital Evolution Index indicates the state and quality of digitalisation in a country by analysing 108 indicators measuring supply conditions, demand conditions, institutional environment,

and innovation and change

2. ICT Development Index published by ITU measures the digital divide and compare ICT performance within and across countries

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T: +91 120 4017100

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About RocSearch

Please visit www.rocsearch.com for more details on the company.

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GLOBAL CONSULTING MARKET

Table of Contents

▪Industry Landscape 3–8

▪Competitive Positioning 10–17

▪Opportunity Assessment 19–20

▪Appendix 22

The consulting industry consists of five main functional areas—Operations, Strategy, Financial

Advisory, Human Resources (HR) and Technology

MARKET STRUCTURE

Source: Consultancy.uk

Process Management

Supply Chain

Procurement

Finance Operations

Outsourcing

Project Management

Corporate Strategy

Economic Policy

Mergers & Acquisitions

Organizational Strategy

Functional Strategy

Corporate Finance

Restructuring

Actuarial Services

Risk Management

Real Estate Advisory

Forensics & Litigation

Organisational Change

HR Technology

Learning & Development

Benefits & Rewards

Talent Management

IT Advisory

ERP Implementation

Data Analytics

Application Development

Systems Integration

Enterprise Architecture

Technology

Operations Technology Technology TechnologyTechnology TechnologyHR

Financial

Advisory

Strategy

CONSULTING

INDUSTRY

Digital Transformation Consulting

• Business &

Organisational Impact

• Change Management

• Creativity and

Innovation

• Customer

Experience Design

• Legacy & Backend Integration

• Infrastructure & Security

Strategy Design

Technology

Digital

Transform-

ation

The Middle East followed by Asia Pacific, registered the highest growth rates in 2017 as these

regions typically comprise countries that are at low–medium level of maturity

REGION SUMMARY

Source: RocSearch Analysis

Market Size and % share

of consulting market in

2017

Market Maturity

High

Medium

Low

Growth in 2016–17

x-x%

North America Europe

Latin America

Africa

Middle East

Asia Pacific

x-x%

Global consulting market has grown at a CAGR of xx% during 2011–16, with Asia-Pacific being

the fastest growing region, primarily due to accelerated growth of Chinese consulting market

MARKET SIZE AND SEGMENTATION – GLOBAL

Source: Consultancy.uk

Note: 1) Europe, the Middle East and Africa

xx xx xx xx xx xx

2011 2012 2013 2014 2015 2016 2017 2019

Strategy Operations Financial Advisory HR Technology

• Digital and business model disruption has primarily been the driving factor behind the growth of consulting globally, particularly in more mature markets

• Due to increasing globalisation, companies require more sophisticated and internationally oriented services, thus increasing demand for management consulting services

• Asia Pacific had the highest growth momentum with a CAGR of x% during 2012–16, while the EMEA region and North America grew at a CAGR of about x% during 2012–16, on an average

xx xx xx xx xx xx

Financial Advisory Operations Technology HR Strategy

EMEA North America Asia Pacific Others

CAGR

(2011–16)

CAGR

(2012–16)

Global Consulting Market – By Value (USD bn, 2011–2016) Global Consulting Market – By Function (%, 2016) Global Consulting Market – By Region (%, 2016)

In 2017, the global digital transformation market almost xx in size as against 2016

MARKET SIZE AND SEGMENTATION – GLOBAL

Source: Consultancy.uk

Note: 1) Europe, the Middle East and Africa

Other Services

Strategy

Technology

Australia

•In 2017, the global digital transformation market accelerated to USDxx bn, from USDxx bn in 2016, increasing by ~xx%

revenues

─Top strategy firms, such as AA, BB and the CC, have invested heavily in their digital lines in anticipation of this

─Irrespective of breadth of services provided by tier-1 consulting firms, tier-2 and tier-3 firms are also preferred due to their flexibility and cost-effectiveness for the client

Deloitte Accenture McKinsey KPMG, PWC & EY Others

% of countries’

total consulting

market

Digital Transformation Consulting – By Segments (USD bn, 2016) Digital Transformation Consulting – Market Share (%, 2016) Digital Transformation Consulting – By Region (USD bn, 2016)

Eastern European consulting market represents is the bright spot in Europe having posted a

xx% CAGR during 2010–16, compared with the region averaging xx% CAGR during the period

MARKET SIZE AND SEGMENTATION – EUROPE

Source: Consultancy.uk; consultancy.eu

─During this period, consulting market in Eastern Europe grew two-folds compared with Western Europe

lawyers and accountants in the DACH region

• As Eastern Europe largely comprise emerging economies, the share of operational consulting is relatively much higher compared with other functions

xx xx xx xx xx xx xx

2010 2011 2012 2013 2014 2015 2016

Scandinavia Benelux Southern Europe DACH Region

Eastern Europe France UK & Ireland

xx xx xx xx xx xx xx

CAGR

(2010–16)

Scandinavia

Benelux

Southern

Europe

DACH

Region

Eastern

Europe

France

UK &

Ireland

Technology HR Financial

Advisory

Operations Strategy

European Consulting Market – By Region (USD bn, 2010–2016) European Consulting Market – By Function (%, 2016)

Note: 1) D — Deutsch (German), A — Österreich (Austria), CH — Schweiz (Switzerland)

Germany, China, Saudi Arabia, India, the UK and US are among the fastest-growing markets for

consulting services

RELATIVE COUNTRY BENCHMARKING

Source: consultancy.uk; consultancy.eu; consultancy.asia; consulting.us; Barnes Report 2017

Note: 1) Market assessment criteria are covered in the appendix section; (continued in slide notes)

Country Name1Region Consulting Market Size

(USD,2016)

Growth

(%, 2015-2016)

Digital Evolution Index

Score 20172

Ease of Doing Business

Ranking

Number of Management

Consulting

Establishments

ICT Development Index

Ranking3

The US North America xx xx 3.61 6 xx 15

The UK Europe xx xx 3.67 7 xx 5

Germany Europe xx xx 3.36 xx xx xx

China Asia Pacific xx xx 2.49 xx xx xx

France Europe xx xx xx xx xx xx

Australia Asia Pacific xx xx xx xx xx xx

Romania Europe xx xx xx xx xx xx

India Asia Pacific xx xx xx xx xx xx

Spain Europe xx xx xx xx xx 27

Italy Europe xx xx xx xx xx 46

Saudi Arabia MEA xx xx xx xx 17,499 xx

The Netherlands Europe xx xx xx xx 6,838 xx

Singapore Asia Pacific xx xx xx xx 2,793 xx

Brazil Latin America xx xx xx xx 87,515 xx

Sweden Europe xx xx xx xx xx xx

Bulgaria Europe xx 2xx xx xx xx

Denmark Europe xx 4xx xx xx xx

UAE MEA xx xx xx xx xx xx

Norway Europe xx xx xx xx xx xx

Belgium Europe xx xx xx xx xx xx

Finland Europe xx xx xx xx xx xx

Qatar MEA 0.33 xx xx xx xx xx

Kuwait MEA 0.18 xx xx xx xx xx

Oman MEA 0.1 xx xx 71 xx 64

MARKET ATTRACTIVENESS:HIGH MEDIUM LOW

Table of Contents

▪Industry Landscape 3–8

▪Competitive Positioning 10–17

▪Opportunity Assessment 19–20

▪Appendix 22

Source: RocSearch Analysis

Tier-2 and tier-3 firms provide increased service flexibility, and prove to be cost-effective for

their clients

COMPETITIVE SCENARIO

Suppliers with diversified service line and

geographic capabilities

Suppliers with limited service line

and geographic coverage; mid-

sized companies (medium

revenues)

Suppliers with niche

capabilities or

operations in a

specific geography

Fee

Level

Geographic

Reach

Breadth

of Service

Offerings

Team

Structure Overhead

Buyer

Negotiation

Power

Pyramidal

with junior

associates

Gamut of

services

within their

chosen

area

Pyramidal

with very

few fresh

hires

Focused

on service

line

Boutiques

do not

employ

fresh hires

Key Attributes

High Medium Low-Med Low

Global Players Overview

Spain

# x

Sources: Consultancy.uk; consultancy.eu

Note: 1) Many of the fastest growing firms listed above have ‘Technology Consulting’ and ‘Digital Transformation’ capabilities

Tier-2 and tier-3 players recorded higher growth rates during 2015–17 than tier-1 consulting

companies

INDUSTRY HEALTH ASSESSMENT

France

# x

2.3

2.8

3.4

4.7

5.0

7.7

11.5

14.5

15.4

16.0

10%

-4%

12%

11%

Revenue – Consulting Business

(USD bn, 2016)

Revenue Growth

(%, 2015–16)

10%

11%

Market Share

(2016)

3,2

2,2

60,

000

14,

000

23,

000

30,

000

1,3

40,

513

46,

000

Employees

(2016)

411,000

Europe's thirty fastest-growing consulting firms

achieved an average CAGR of xx% during

2015–17

xx%

# x

#Number of Consultancies in Top 30

CAGR (2015–17)

Average Full-time Equivalent (FTE) Increase (2015–17)

Largest Global Consulting Firms Europe’s Fastest-Growing Consulting Firms

Germany

# x

Sources: RocSearch Analysis

XYZ is likely to be advantageous over tier-1 firms on certain parameters such as cost

effectiveness, turnaround time and flexibility

KEY DIFFERENTIATORS

COST EFFECTIVENESS TURNAROUND TIME INVOLVEMENT OF SENIOR

STAKEHOLDERS FLEXIBILITY

AGILITY EMPLOYEE COORDINATION REGIONAL FOCUS BREADTH OF SERVICE

SPECIALISATION CAPACITY BRAND AND REPUTATION SCALE OF TASKS

PARAMETERS WITH RESPECT TOXYZ

HIGHLY FAVOURABLE MODERATELY FAVOURABLE NOT FAVOURABLE

XYZ has advantages in terms of cost-effectiveness, turnaround time and involvement of senior

stakeholders

KEY DIFFERENTIATORS

PARAMETERS TIER-1 PLAYERS XYZ DESCRIPTION

Cost Effectiveness   • Tier-1 companies have significant overhead costs, and thus are likely to charge higher prices for consulting, compared with

XYZ, that has a more competitive pricing

• Start-ups or smaller clients are more likely to hire XYZ, attributed to its cost effectiveness

Turnaround Time  

• Expertise based consultants at XYZ can utilise their knowledge and competency to quickly gain traction on new projects

• On the other hand, new projects may require a steep learning curve for less experienced consultants at large firms, which can

lengthen the time needed for project completion

• Clients are likely to hire XYZ for a shorter turn-around time project, as the larger firms are more inclined towards a long-

duration engagement

Involvement Of Senior

Stakeholders  

• XYZ has a larger involvement of senior stakeholders throughout the project, that is likely to improve the overall quality and

analysis

• With a large firm, there is a possibility of having the project delegated to junior employees who have less experience, unless

the client is a top brand with a large budget

Regional Focus  

• Though tier-1 players have a larger pool of consultants and serve more geographies, technological advances have led to

conducting presentations, interviews, virtual workshops and most other activities with thousands of participants around the

globe

• However, there are instances when clients need simultaneous geographic reach, which might become difficult for a region-

focussed firm

Breadth Of Services/

Specialization   • Tier-1 firms have a larger pool of services compared with the tier-3 firms

• Niche consulting firms usually focus on specific industries or business problems, thereby offering in-depth expertise in

particular areas

Capacity   • In lieu of on-going projects, tier-3 firms may not be able to accommodate a new project efficiently, due to their limited capacity

of professionals working on it

Sources: RocSearch Analysis

Agility and employee coordination can make XYZ preferred over other big consulting firms

KEY DIFFERENTIATORS

Sources: RocSearch Analysis

PARAMETERS TIER-1 PLAYERS XYZ DESCRIPTION

Digital Transformation  

• Tier-1 companies are focussing more on digital transformation consulting by expanding their services portfolio and acquiring

technology firms, and have also established separate digital brands such as BB Digital, Deloitte Digital or Bain Digital

• The big Four have acquired about 185 consulting firms during 2014–17, of which a half are active in the technology/digital

space

• However, niche consulting firms are also focusing on Digital Transformation to hold on to the market demand

Flexibility And Innovation   • Smaller tier-3 consulting firms, such as XYZ are able to target their efforts and tend to be more flexible

• By utilising their proficiency in specific subject areas they are likely to resolve issues more creatively

Brand & Reputation  

• Larger firms, such as the Big Four have an advantage in terms of their brand image, and are likely to win more business based

on this parameter, compared with the smaller tier-3 and boutique firms

•

Sometimes clients need a brand label associated with themselves to shore up their confidence when presenting to the board or

to make their recommendations reliable

Agility   • For XYZ, it will take a lesser time to alter ideas and processes throughout the entire consulting staff, in contrast to a bigger tier-

1 firm

• For a tier-1 firm, the process can be time consuming and expensive

Employee Coordination   • XYZ’s consultants tend to work cooperatively rather than competitively, thereby producing synergies from collaboration

• In a smaller firm, employees usually work one-on-one or with a small consulting team, hence improving quality

Scale Of Tasks For A

Project   • Some projects require a larger work-force to get tasks done, for e.g., for commoditised implementation projects such as

implementing a new IP system or focus group sessions with about 2,500 people around the globe

• Larger firms are likely to be advantageous in such a scenario, due to their extensive capacity

The highest rates in the industry are charged by the ‘xx’, whereas the ‘yy’ offer lower fees for

some services, attributed to large variation in their fee structure

FEES AND RATES (1/3)

Source: Consultancy.uk

xx xx xx xx xx xx xx xx

Number of Consultants

Average Revenue per Consultant (USD thousand per year)

Independent Contractors

National/

Regional

Functional

Specialists

Strategy

Boutiques

Global Functional

Specialists

Global Strategy

Firms

Small & Mid-sized

technology players Mid-sized

Accountants

Global Technology

Firms

Big Four

• Highest rates in consulting are charged by ‘Global Strategy

Consulting Firms’, such as BB, CC, BB, DD, YY and AA

─They are followed by ‘Strategy Boutiques’ that have a national

or regional focus

• ‘Global Functional Specialists’, such as XX, AB, AC, AD and AE,

typically have revenue/consultant between USD xx–xx per year

• Strategy and management consulting practices of the ‘Big Four’

are at the top-end of their fee model, whereas lower hourly rates

are billed by lower-value-adding services, such as accountancy,

audit or operational disciplines within IT Consulting

• ‘National / regional functional specialists have rates similar to the

Big Four, although their exact fee structure depends on their

reputation, functional focus and service portfolio

• ‘Mid-size Global Accountants’, such as A, B and C, have varying

rates compared to technology players, because of a full suite of

service offerings, varying from accounting and tax to consulting and

corporate finance

• ‘Global Technology Firms’ focus on IT Consulting services and

include players such as X, Y and Z

• Annual fees of ‘Independent Contactors’ range from USDxx

a year (for operational support) to about USDxx

(for executive consultancy)

Consulting Fee Analysis1

Note: 1) The figure uses the revenues per consultant per annum as a proxy for average rates and the number of consultants as a proxy for firm size

Tier-2 and tier-3 consulting firms are able to maximise billing flexibility due to lower overheads

and other expenses compared with tier-1 companies

FEES AND RATES (2/3)

Source: RocSearch Analysis

Tier-1 US Management Consulting Average Billing Rates (USD/hour) – 2018

Service Line Partner Director Senior Manager Manager Senior Consultant Consultant Analyst

Strategy xx xx xx xx xx xx xx

Operations xx xx xx xx xx xx xx

Finance (BAS) xx xx xx xx xx xx xx

HR Consulting xx xx xx xx xx xx xx

Tier-2 US Management Consulting Average Billing Rates (USD/hour) – 2018

Service Line Partner Director Senior Manager Manager Senior Consultant Consultant Analyst

Strategy xx xx xx xx xx xx xx

Operations xx xx xx xx xx xx xx

Finance (BAS) xx xx xx xx xx xx xx

HR Consulting xx xx xx xx xx xx xx

Tier-3 US Management Consulting Average Billing Rates (USD/hour) – 2018

Service Line Partner Director Senior Manager Manager Senior Consultant Consultant Analyst

Strategy xx xx xx xx xx xx xx

Operations xx xx xx xx xx xx xx

Finance (BAS) xx xx xx xx xx xx xx

HR Consulting xx xx xx xx xx xx xx

US Management Consulting Billing Rates1(2018)

Tier-2 and tier-3 consulting firms are able to maximise billing flexibility due to lower overheads

and other expenses compared with tier-1 companies

FEES AND RATES (3/3)

Source: RocSearch Analysis

Tier-1 UK Management Consulting Average Billing Rates (USD/hour) – 2018

Service Line Partner Director Senior Manager Manager Senior Consultant Consultant Analyst

Strategy xx xx xx xx xx xx xx

Operations xx xx xx xx xx xx xx

Finance (BAS) xx xx xx xx xx xx xx

HR Consulting xx xx xx xx xx xx xx

Tier-2 UK Management Consulting Average Billing Rates (USD/hour) – 2018

Service Line Partner Director Senior Manager Manager Senior Consultant Consultant Analyst

Strategy xx xx xx xx xx xx xx

Operations xx xx xx xx xx xx xx

Finance (BAS) xx xx xx xx xx xx xx

HR Consulting xx xx xx xx xx xx xx

Tier-3 UK Management Consulting Average Billing Rates (USD/hour) – 2018

Service Line Partner Director Senior Manager Manager Senior Consultant Consultant Analyst

Strategy xx xx xx xx xx xx xx

Operations xx xx xx xx xx xx xx

Finance (BAS) xx xx xx xx xx xx xx

HR Consulting xx xx xx xx xx xx xx

UK Management Consulting Billing Rates1(2018)

Table of Contents

▪Industry Landscape 3–8

▪Competitive Positioning 10–17

▪Opportunity Assessment 19–20

▪Appendix 22

M&A strategy, digital transformation advisory, and AI and automation implementation strategy

services are potential candidates for service extension for XYZ

OPPORTUNITY ASSESSMENT

Source: RocSearch Analysis

Note: 1) The mentioned capabilities have been aggregated from the companies that have been top-ranked on the basis of differentiated service offerings

2) The analysis is based on our understanding of XYZ’s capabilities

Product

Strategy

Marketing &

Sales IT Advisory Data Analytics

Growth

Strategy

Mergers &

Acquisitions

Organizational

Strategy

Industry

Analysis

Systems

Integration

Application

Development

ERP

Implementation

Process

Re-engineering

Target Operating

Model

Operational

Platform Streamline

CRM Strategy

Cyber Security

Strategy

Cloud Strategy

Enterprise

Architecture

Client-customised

Analytics

Analytics Strategy

Business

Performance

Product

Development

Product Positioning

Brand Strategy

Target Customer

Analysis

Pricing Strategy

Channel Strategy

Marketing Strategy

Sales Force

Effectiveness

Organic Growth

Planning

New Market Entry

Target Identification

Due Diligence

Integration

Planning

Post-Merger

Integration

Exit Support

Organisational

Design

Regulatory

Strategy

Corporate

Governance

Talent Retention &

Development

Industry Analysis &

Insights

Competitor

Benchmarking

Market & Revenue

Pool Sizing

Economic Policy

CORPORATE

STRATEGY TECHNOLOGY/ DIGITAL

SERVICES

DIGITAL STRATEGY/ TRANSFORMATION

Digital Readiness

Assessment

Digital Governance and

Sustenance

AI and automation

implementation strategy

Digital Transformation

Advisory

Digital Supply Chain

Transformation Enterprise Blockchain

Strategy

SERVICES WITH RESPECT TOXYZ

EXISTING CAPABILITIES QUICK WINS

Product

Segmentation

All of the XYZ’s existing operational locations are among the identified high potential markets;

other potential expansion markets in Europe includes France, Spain and rest of Nordics

OPPORTUNITY ASSESSMENT

Source: consultancy.uk; consultancy.eu; consultancy.asia; consulting.us; Barnes Report 2017

Note: 1) Recommended markets for geographical expansion are the ones assessed highly attractive “marked in green” in at least three of the parameters in the relative company benchmarking section

•France

•Spain

•Denmark

•Sweden

•Norway

•Australia

•UAE

Suggested Markets for Expansion Suggested Markets for Geographical Expansion

High Potential and Suggested Markets for Expansion

Other Markets with XYZ’s Operational Presence

XYZ’s Current Office Locations

High Potential Market with XYZ’s Existing Operations

UAE

Denmark

Singapore

Table of Contents

▪Industry Landscape 3–8

▪Competitive Positioning 10–17

▪Opportunity Assessment 19–20

▪Appendix 22

Approach for Relative Country Benchmarking

APPENDIX – APPROACH FOR RELATIVE COUNTRY BENCHMARKING

ATTRACTIVENESS TO INVEST HIGH MEDIUM LOW

INDICATORS AND RATING CRITERIA

GROWTH RATE (%) > 7 3–7 <4

DIGITAL EVOLUTION INDEX SCORE1> 3 2–3 <2

EASE OF DOING BUSINESS RANKING Up to 49 50–99 >99

# OFMANAGEMENT CONSULTING ESTABLISHMENTS >100,000 10,000–99,999 <10,000

ICT DEVELOPMENT INDEX RANKING2Up to 49 50–99 >99

Definitions:

1. Digital Evolution Index indicates the state and quality of digitalisation in a country by analysing 108 indicators measuring supply conditions, demand conditions, institutional environment,

and innovation and change

2. ICT Development Index published by ITU measures the digital divide and compare ICT performance within and across countries

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