Management Consulting Industry in Iran
Iran benefits a highly intact management consulting industry that possesses a high potential for growth; consultants, therefore, can significantly affect the future of business in Iran. They all have been provided with an opportunity to enter various business areas throughout the country, notably in worldwide business management consulting, aiming to help companies to grow and address their problems, and also to gain considerable revenue by implementing the management consulting plans as a freelancer.
The first management consulting company in the world was founded by Arthur D. Little of the same name and offered his services in the field of technical research.
Today, three of the world’s top management consulting companies (e.g. McKinsey, Boston Consulting Group-BCG and Bain & Company) are providing specialized services in more than 200 countries, accounting for more than $ 20 billion profit annually. The total volume of the market is currently over $ 260 billion and is projected to rise to $ 290 billion by 2020.
Management Consulting in Iran
For the first time, the Iranian Industrial Guidance Center decided to offer management consulting services throughout the century. The institute was founded under the shadow of the unpredictable economic downturn of the 1950s and a crisis in Iran’s industry, aiming to train and develop management in the Iranian industry.
But in the early 1960s, the center was renamed the “Industrial Management Organization” following a change in its structure and purpose. Organizational managers then decided to accept the responsibility for the achievements of applying the new management strategies in the evolution of firms instead of providing guidance services, and thus adopted the “management consulting services providing” approach.
In recent years, the ‘’Association of Iranian Management Consultants’’ has been working extensively to develop the consulting industry by adopting the “Development of Brand and Market Management Consulting in Iran” approach.
The number of freelance consultants is increasing worldwide. According to this website, 20% of industry practitioners are freelancers who provide services to companies; many former employees of management consulting companies are also setting up their own small consulting companies.
In Iran, many professionals prefer to offer their services to their customers without belonging to a particular company. The creation of a large number of independent telecommunication platforms confirms the subject.
In the field of management consulting, many people attempt to provide management consulting services as a freelancer, relying on their professional experience.
Current status of management consulting market
According to the Iranian Management Consulting Association, there are currently more than 700 management consultancy companies in Iran, where only 20% of them are experiencing over one billion tomans in stock turnover annually, and 70% of these companies are managed with a maximum of 2 personnel. They are freelancers who offer their services.
Most management consulting firms in Iran are currently active in the three areas of strategy and process, human resources and marketing. However, applicants have not provided with standardized and inclusive education in this market. In most cases, people act as consultants with experience in providing services. Management consulting, however, is an industry and a completely systematic approach developed and touched by international corporations over the years.
The Future of Management Consulting Market in Iran
According to a report by Consultancy.uk, the size of the Iranian management consulting market is estimated at just $ 6 million. According to this website, however, it is estimated the country to experience a growth of up to $ 850 million, presenting Iran’s management consulting industry as one of the biggest growth in the years ahead. By examining the usual trends in the market, it is found that in times of crisis and economic downturn, using management consultants with the approach of minimizing the recession experiences significant growth. For example, as a result of the recession in the United States in the 1940s and 1950s, the number of management consulting firms increased more than twice and its market volume increased by 5 times.