Expert s view on Kazakhstan s market of consulting: indicators, trends and problems Alexander Ruzanov, Peter Valter, BRIF Research Group

Transcription

1 Expert s view on Kazakhstan s market of consulting: indicators, trends and problems Alexander Ruzanov, Peter Valter, BRIF Research Group

2 ABOUT US EXPERIENCE 25+ years in Kazakhstan and Central Asia markets EXPERTISE projects during last 3 years MEMBERSHIP with the following members: CSPO (ЦИОМ), BISAM, ISAS, SANGE, GFK, Elim, Alvin 2

3 CONTENT Introduction. Methodology. Experts Indicators Factors of the influence Trends of Kazakhstan s consulting Experts recommendations 3

4 WHAT MANAGEMENT CONSULTING INCLUDES Operational consulting Strategic consulting Financial management consulting Market and consumer research IT consulting HR consulting PR and others 4

5 METHODOLOGY Qualitative nature of expert evaluation Analysis of Statistics Expert evaluation and ranking of factors and trends Analysis and comparison of data from available sources In-depth interviews with experts 5

6 EXPERTS AND SOURCES S O U R C E S E X P E R T S Stat agency European Bank for Reconstruction and Development (EBRD) European Federation of Management Consultancies Associations (FEACO) Ranking agency EXPERT Research and consulting companies (BISAM, SOURCE, CIVITTA) others - Tatyana Reshetnik, Senior Specialist, Small Business Support Group, EBRD in Kazakhstan - Tatiana Gish, head of the RICS working group in Kazakhstan and Director of BT Kazakhstan Valuation & Consulting - Asel Karaulova, President of Kazakhstan Press Club, Chairman of PR Association of NASO - Valentina Grigoryeva, Director of Ayar Consulting, Chairman of CMC Kazakhstan Marketing Committee - Natalia Ospanova, director of the consulting company "Alvin Market" - Leonid Gurevich, doctor of sociology, president of the research company BISAM Central Asia - Tatyana Otenko, General Director of BISAM Central Asia 6

7 MARKET PLAYERS Small 99% <10 employees 88% 1500 Almaty & Astana 64% Registered 50 Working 40 Commercial and management Research IT *Stat agency * Experts 7

8 MARKET VALUE World (2015 год) $245 bln. +5% Strategy Operations Finance HR IT *CIVITTA 8

9 MARKET VALUE World $245 bln. +5% (2015) Russia $2,2 bln. +5% (2016) EU $92 bln. (2015) Kazakhstan $ mln % (2016) 9

10 KAZAKHSTAN MARKET SEGMENTS IT 6% HR 3% others 1% Finance 8% Research 7% Operations 56% Strategy 19% *Stat Agency 10

11 TURNOVER PER PROFESSIONAL thnd Finland Germany UK France Ireland Austria Spain Greece Italy Slovenia Kazakhstan * FEACO 11

12 LARGE AND SMALL CONSULTING. PARALLEL WORLDS Different business segments, clients Different budgets Different rules of the game Large consultants recommendations are too general Small consultants «invent a bicycle» POTENTIAL CONFLICT or AREA OF DEVELOPMENT? 12

13 CONSULTANTS: COMPANIES VS INDIVIDUALS Individuals are more flexible, mobile and cheaper Local companies in competitive pressure between large consulting and freelance individuals Companies take freelancers for projects 13

14 SOME COMPANIES SUFFER FROM CRISIS, OTHER HARVEST THE CRISIS Developing IT consulting Consulting in building promotion and sales systems Building systems for e-commerce Strategic consulting Reducing Marketing consulting - reducing Demand for ISO - falling The consulting in the field of ecology and energy saving - poorly demanded 14

15 FACTORS 15

16 FACTORS OF INFLUENCE STRONG FACTORS Lack of highly qualified professional consultants Dishonest methods of competition, dumping Distrust of business consultants 16

17 FACTORS OF INFLUENCE RATHER STRONG FACTORS Maturity of demand - growing Professional level of top management for clients - growing Availability of effective demand for consulting - growing/falling depends on sector Legislation on consulting Lack of state support for the consulting industry 17

18 FACTORS OF INFLUENCE AVERAGE FACTORS Economic situation, crisis (spurring business) Globalization of business Competition among clients 18

19 FACTORS OF INFLUENCE RATHER WEAK FACTORS The political situation in Kazakhstan (stability, uncertainty) Investment attractiveness of the country (more positive, although attractiveness decreases) Mastering international experience and standards in consulting (no real transfer, like advertising) Competition in the local market (rather weak) 19

20 SPECIAL INFLUENCE FACTORS The arrival and activation of foreign consultants (USA, Europe) The arrival and activation of consultants from Russia and Ukraine The emergence and development of professional associations of consultants in Kazakhstan (very weak and passive) 20

21 TRENDS 21

22 TRENDS IN KAZAKHSTAN S CONSULTING MOST STRONG TRENDS Internet and its implementation in all types of activities and technologies Dumping among consultants Growth and development of IT consulting 22

23 TRENDS IN KAZAKHSTAN S CONSULTING STRONG TRENDS RELATED TO COMPETITION Fashion among large companies to attract expensive international consultants Growth of pressure from Russian and Ukrainian consultants The growth in the number of individual consultants and freelancers 23

24 TRENDS IN KAZAKHSTAN S CONSULTING THE DIGITALIZATION OF CONSULTING IS ESSENTIAL Merger of consulting with IT Globalization of services due to dominance of Internet In connection with digitalization the emergence of new standards and requirements for the work of consultants 24

25 TRENDS IN KAZAKHSTAN S CONSULTING TRENDS, CHARACTERIZING CUSTOMER DEVELOPMENT Business has a growing understanding of the need for consulting and willingness to engage consultants Business began to make more requests not for general consulting, but for solving specific narrow tasks Accounting for the mentality and application of the Kazakh language in consulting (especially relevant, in the state sector and western regions) Reduction of budgets for marketing consulting 25

26 TRENDS IN KAZAKHSTAN S CONSULTING DISAPPOINTING TREND FOR KAZAKHSTAN S CONSULTING The situation with local personnel worsens The quality of education is falling Practically there are no consultants with knowledge of industry specificity 26

27 RECOMMENDATIONS 27

28 RECOMMENDATIONS FROM EXPERTS TO PROFESSIONAL ASSOCIATIONS Active struggle against dumping ("this is the way to nowhere") Promote the idea of the importance of consulting, show successful cases Educate clients on the proper use and understanding of consulting Should influence on the education system 28

29 RECOMMENDATIONS FROM EXPERTS TO CONSULTANTS Increase the speed of work - customers all need fast results Provide your services with technological, digitized tools Local consultants - learn to competently and attractively present themselves and their services 29

30 THERE IS MUCH TO DEVELOP Western professional consulting for about 100 years Kazakhstani - about 20. We have something to learn, there is much to grow 30

31 Contacts: BRIF Research Group Alexander Ruzanov 31