Tata consulting arm is India's third largest
Financial Times — April 25, 2007

The Tatas could soon give global consulting firms McKinsey & Co and Boston Consulting Group a run for their money — at least in the estimated Rs1,500-crore Indian consulting market.

Tata Strategic Management Group (TSMG), which began as an in-house consulting arm in 1991, has in the last two years grown to become the third largest strategic consulting firm in India in terms of billable consultants. In 2006-07, over 60 per cent of its revenues were generated from outside the Tata group, compared to just 20 per cent only two years ago. It is targeting half its revenues from overseas clients by 2010, from the current 25 per cent.

TSMG's billable employee strength is at 70, plus its panel of industry experts, next to McKinsey's 120-odd and BCG's 100. TSMG is already in the process of taking it up to 80 in the next two months. In 2004-05, TSMG decided to restructure itself into business practices, with each vertical a profit centre.

TSMG now has six verticals. "This model has worked well for us and we have been able to achieve our targets of increasing business outside the group as well as overseas," said Raju Bhinge, CEO, TSMG.