China’s value of consulting market (sans IT consulting) will reach $1.75 billion in 2009. At the same time, the IT consulting business in the Chinese market will reach 14.3 billion yuan ($2.1 billion).
China Consulting Market with Big Potential
China’s Gross Domestic Product had reached 30.1 trillion yuan ($4.4 trillion) in 2008. But in each $1,000 GDP, the Chinese consulting industry gains smaller than $0.4 – That equals to 30% of that in the United States, according to Yuan Yue, President of the Horizon Group.
Foreign-invested companies consume 90% of the China consulting market, while domestic companies take only 10%.
Traditionally, the Chinese domestic companies would not like to ask professional consultants to help them make decisions. But things have been changing today, and more and more domestic companies are seeking help from consulting companies. As a result, it is estimated that the Compound Annual Growth Rate (CAGR) of the Chinese consulting market (sans IT consulting) will be 19% between 2009 and 2012, and the CAGR of the Chinese IT consulting market will be 22% between 2008 and 2012.
The Facts of the Chinese Consulting Industry
In the China IT consulting market, the Chinese financial and telecom industries offer more than half of the business opportunities. The outsourcing of the Chinese financial industry and telecom industry will, respectively, increase 22% and 13% a year in the next few years. That will drive the IT consulting industry increasing at a high rate. And it is estimated that the information security business will offer the most potential market for the China IT consulting industry.
In the China business consulting market, management consulting takes the biggest share. The biggest problem of the market is that some Chinese companies do not trust outside consulting companies, for the suggestions from the consultants are sometimes unworkable or do not have enough alternatives.
Financial consulting, HR consulting and recruitment consulting are also booming in the Chinese market.
Chinese Consultants – Consulting Jobs in China and Salaries
The international hub Shanghai offers most of the consulting jobs in China. The average salary of consultants is top among all the Shanghai’s service industries – it is 30% higher than the average of Shanghai’s service industries. The salary of a business consultant in Shanghai can be from 4,000 yuan ($590) to 30,000 yuan ($4,400) a month.
Sources: This analysis is based on latest statistics from the Horizon Research Consultancy Group (Horizon Group), the Analysys International and the National Bureau of Statistics of People’s Republic of China as of the date of article publication.
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