Emerging markets are undergoing dramatic shifts, economic, political, technological, and social. As they grapple with rapid urbanization, digital transformation, sustainability pressures, and regulatory reforms, the need for specialized advisory and consulting services has surged. This article explores why business consulting is rising fast in emerging markets, what key trends are driving that rise, what challenges firms face.
Key Drivers Fueling Growth in Business Consulting in Emerging Markets
Several trends are contributing to the rising demand for consulting services:
Mega-Projects & National Transformation Schemes
Governments in many emerging economies are launching large infrastructure and public policy programmes (e.g., new cities, smart infrastructure, public sector reform). These require planning, regulatory advisory, change management, financing and execution support. In the GCC for example, Vision 2030-style initiatives are major drivers.
Digitalization & Technology Adoption
Technology is no longer a luxury but a necessity. AI, cloud computing, IoT, cybersecurity, and data analytics all feature heavily. Firms that can offer both strategy and implementation in tech are in high demand. Digital transformation mandates (often public as well as private) are creating consulting opportunities.
Sustainability, ESG & Regulatory Pressure
Environmental, Social and Governance (ESG) considerations are rising globally. Emerging market clients are increasingly under pressure to meet international investor expectations, regulatory reporting, and sustainable development goals. Consultants with ESG, green finance and climate risk capabilities are becoming more essential.
Need for Local Expertise and Cultural Fit
Emerging market clients prefer consulting partners who understand local legal, regulatory and business cultures. Boutique firms or consultancies with local presence, or those that combine global best practices with local insight, are winning more work.
Demand for End-to-End & Implementation-Focused Consulting
There is a shift from “advisor only” work (strategy, reports) to firms staying for implementation, capability building, training, change management. Clients want measurable outcomes, not just recommendations.
Emerging Market Firms & SMEs as Key Clients
Small and medium enterprises (SMEs) in emerging economies often lack internal capabilities and increasingly seek external advisory to modernize, digitize, or adapt to regulatory change. Also, large enterprises navigating international markets need advisors for risk, compliance, market entry etc.
Challenges & Risks in Emerging Markets
While the opportunity is strong, there are several challenges for consulting firms and clients in emerging markets:
- Cost Sensitivity & Budget Constraints: Many clients in emerging markets have tighter budgets, and consulting fees (especially from international firms) can be expensive.
- Regulatory Instability & Legal Risks: Laws/regulations may change quickly, or enforcement may be uneven. Intellectual property, contract enforceability, data privacy rules etc. may be less predictable.
- Talent & Skills Gaps: There may be shortages of consultants with both technical expertise AND local market experience. Scaling a consulting firm locally with quality talent can be difficult.
- Trust & Continuity: Clients may have less experience with consultancy, may mistrust external advisors, and may expect a lot of handholding or embedded support rather than purely strategic advice.
- Infrastructure & Technology Barriers: Digital tools, data availability, connectivity etc. may still lag in some emerging markets, which can make implementation harder.
The rise of business consulting in emerging markets is not a passing trend, it reflects deep structural shifts: governments investing in infrastructure and digital transformation, investors and stakeholders demanding sustainability and good governance, and companies wanting specialized, outcome-oriented help. For consulting firms, the opportunity is large, but success will go to those who combine global best practices with local insight, deliver measurable outcomes, show flexibility, and build trust. For clients in emerging markets, choosing the right consulting partner means looking for those who can do more than provide strategy — firms that can execute, adapt with you, and understand your regulatory, cultural, and economic context.
Written by Roaa Abdelrahman
Source:
- Special Report: Consulting in Emerging Markets – Financial Times
- Business Consulting Services Market – Metastat
- Emerging Markets Consulting – Consulting Quest
