Global consultancy company firm KPMG is planning to hire around 8,000-9,000 people to expand its workforce in India. Around 10 per cent of those employees will be deployed on projects outside India, signalling the financial and business advisory company's shift on making India a global service delivery base. The company's latest plan hints at the changing scenario across the industry, wherein consulting companies like KPMG are being asked to implement solutions, instead of just guiding companies on implementing future strategies.
KPMG, established in India in September 1993, offers services like financial and business advisory, tax and regulatory, and risk advisory services. With a client base of over 2,700 companies, KPMG now wants to consolidate its global delivery capability in India, which is its largest offshore base, reported The Economic Times. To deliver on the strategies it builds for the client companies, KPMG will hire more engineers and executives, thereby expanding its role from consulting and advising companies on business to actually implementing those strategies to show them the desired results.
Traditionally, the implementation of the plan is used by third-party vendors or client companies. But that's changing now. Companies are asking advisory firms like KPMG to show them the results of their strategies, allocating projects that also cover the outcomes of the strategies they implement.
However, this changing shift is also a sign of worry for tech service companies like Tata Consultancy Services, IBM, Accenture, etc, among others, as advisory firms like KPMG are eating into their businesses. Other auditing companies Deloitte and E&Y are also increasing their workforce as they move into the tech service space, which will make the competition in the overall tech service sector stiffer.
The financial year 2018 has been a year of revival for the tech service industry, with the top four IT companies enhancing their workforce more than three times by the end of first half of 2018-19 than they did in the entire last fiscal. The top four Indian IT firms by market capitalisation - Tata Consultancy Services (TCS), Infosys, Wipro and HCL Technologies - reported net employee addition of 32,502 employees during the second quarter of the financial year 2018-19 after accounting for employees who have resigned. TCS added 10,227 employees in Q2 FY19, which is its highest in the last dozen quarter, the tech major mentioned in its financial results for the quarter.
Edited by Manoj Sharma