Administrative Management Consulting: Identifying Key Industry Trends

This report examines the top trends in the administrative and general management consulting industry, focusing on NAICS code 541611. Key trends identified include cybersecurity and privacy, mergers and acquisitions (M&A), and artificial intelligence (AI). The report delves into an emerging issue within AI, specifically the high costs, job displacement concerns, and ethical considerations associated with its implementation. The analysis highlights the industry's shift towards prioritizing value-based services and leveraging technology for efficiency. The report concludes that the industry is expected to grow, driven by technological advancements, while also addressing the challenges posed by economic changes and the need for cost-effective solutions.

Running head: RESEARCH PAPER
Administrative Management and General Management Consulting Services
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Table of Contents
1. Findings.......................................................................................................................................2
1.1 Top trends of the consulting industry....................................................................................2
1.2 Emerging issue in a trend......................................................................................................4
2. Conclusion...................................................................................................................................5
References........................................................................................................................................7

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1. Findings
The selected NAICS code for this study is 541611 (Administrative Management and
General Management Consulting Services). In United States, the management consulting was
$80 billion based on enterprise wide and $100 billion based on industry worldwide. In 21st
century, the management consulting industry is offering internet based services to the businesses
launching online ventures. 25% of the personnel into management as well as consulting services
are to be self-employed (Poulfelt et al., 2017, pp. 5-36). Consulting is one of the industries which
come under NAICS code 541611.My role in the industry is as “Senior Subcontracts
Administrator”. As a subcontractor administrator, it is role to identify requirements of the
consulting business and carry out a process to determine the business requirements. It is
responsibility to procure of materials and services which support business effort of the industry.
There is management of lifecycle of subcontract included to identify company’s requirements,
negotiation with sources and took decisions which provided is to be selected as subcontractor.
The subcontractor administratoris being hired in subcontracting practice for making
improvement over staff retention, explore of strategies related to marketing and purchase
software(Hickman& Silva, 2018, pp. 40-45). Subcontracting offers advantages to reduce the
cost, maintain a quality assurance, increase in business productivity and prevent from the
problems.
1.1Top trends of the consulting industry
The recent trends for the industry will shift the revenue based abroad, mainly in the
Eastern Europe, Latin America and other places for greater access to world markets. In United
States, demand is focused into the private sector. The top trends of the consulting industry are:

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Cybersecurity and privacy:In the year 2014, there is high level of cyberattacks which are
resulted in loss of data as well as personal records. In US, cybersecurity as well as privacy is
considered as top most trend for contractors. It is critical to every aspect of the business
operations. As the consulting business is focused more on data, therefore the data breaches
become revealed and the compliance becomes structured.The contractors should be focused on
cybersecurity compliance as well as risk management(Werth&Greff, 2018, pp. 117-135).With
the cyberattacks, leakage of data as well as privacy missteps become pervasive which will
provide a huge effect on reputation of the industry. The key trends shape the cybersecurity as
well as privacy landscape, included of new policy directions and grow in complexity of cyber
plus policy regulations (Lazaroiu, 2015, pp. 71-76). The subcontractors value the privacy of their
personal and corporate data so that it cannot be shared with other person.
Mergers and acquisitions (M&A): Based on the trend from the year 2014, the
subcontracting M&A market in the year 2015 is reviewed as an increase in M&A activities in the
targeted markets like cloud computing. The buyers should be aware of contracting rules whether
acquisition causes to become a small business into large business (Nissen, 2018, pp. 1-58).
About 50% of the benefits in M&A deals from integrating the suppliers as well as purchasing
processes. With the strategic experience, there is procurement consulting abilities, automation
tools that help to recognize potential savings from procurement as well as validate the business
case of M&A. The market leaders prefer for faster action to implement expansion strategy. M&A
is a trend which is favored option for the corporate restructuring (Treichler, 2019, pp. 253-272).
It is a solution for the challenges such as economics of scale, development of resources and
enhance the managerial effectiveness. Despite of these challenges, M&A is a strength throughout

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ability to access regions, products, and economics of scale and enhance the productivity through
planned groupings.
Artificial Intelligence (AI):It is considered as key significant technological
advancements. It is one of the industry trends which substitute and balance communication by
the humans (Sabirov et al., 2015, p.188). The industry is investing to bring AIfor speeding up the
subcontractor administrative tasks like managing different contracts, streaming the processes
related to finance and others.AI holds up, analyze as well as treat people in the workplaces plus
consulting environments in entire world (Carballo‐Penela&Castromán‐Diz,, 2015, pp. 802-818).
The consulting industry is emerging into area of AI research as well as applications. The
consulting industry trends show that the organization is required to moveconcentration from
paying more for quantity to reimburse more for worth of the services.The industry is searching
for ways to make improvement in staff efficiency as well as communication (Gonsen, 2016, pp.
5-6).The industry is desired to meet and satisfy customer’s needs without compromising with
quality of contract. This AI trend is focused on business as well as technology. It is being
considered to retain the executives forward of curve. The consulting business comes with new
processes to use AI to engage with the consumers which help to create procedure easier besides
determine sales.
1.2 Emerging issue in a trend
Creating an artificial intelligence is required of higher cost as it is consisted of complex
machines and need to repair and maintain the machines. The software programs are required
frequent degree to provide requirements of varying environment and need of machines to
become smarter (Hickman& Silva, 2018, pp.40-45). As usage of artificial intelligence is
increasing, it leads to unemployment as well as job safety issues. The machines are replacing the

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human resources, and then unemployment rate is also increasing. The machines are performed
their work as they are programmed without any error while there are possibility of errors from
side of humans. The limitations of AI are included of implementation time which is lengthy,
integration issues and lack of considerate of state-of-art systems (Siyanbola&Olamade, 2016, pp.
30-32). There are also ethical concerns related to use of AI as only accessed person can able to
access AI system and without prior permission of the users, no third party person can access to
the system.
In the artificial intelligence, storage is expansive and access as well as retrieval is not
leading to connections in memory plus humans could.Outside programming, the artificial
intelligence is not able to work (Werth&Greff, 2018, pp. 117-135). The main issue of intelligent
machines is that it cannot be human. The intelligent machines are working for longer hours.
Apart from all those concerns, there is possibility that the artificial intelligence overpowers the
human beings (Poulfelt et al., 2017, pp. 5-36). The robots can lead to unemployment until the
humans are fix unemployment with the jobs. It is seen that the machines lead to destruction when
it goes in wrong hands.There is an idea generated that machines can perform tasks just like
humans, but it is not true. Artificial intelligence is not lying exclusively and primarily in the
technologies.
2. Conclusion
It is concluded that the industry will grow at an average of 4.8% with a growth caused
due to increase in profit as well as employment in economy. In this study, top trends in
consulting industry are identified such as artificial intelligence, cybersecurity and privacy and
merger and acquisitions. The industry is expected to operate in competitive environment with the

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management consultancy firms emerging from technological advancements. One of the most
significant concerns in the artificial intelligence is cost of the machines and devices. In order to
determine the rate, the management estimates number of hours and cost for machine so that the
entire cost is measured. Change in economy affects the firm in various ways. When there is slow
down of economy and business is concerned with bottom line, then there is automation of
businesses.The second practice helps the industry to select the benefit plan of employee which
reduce the cost and offer best subcontractor coverage in the industry. The industry builds a
relation with their customers so that a value based services is implemented in the firm. The
devices are used to review real time data so that the system can automate the work and it
becomes less time consuming.

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References
Carballo‐Penela, A., &Castromán‐Diz, J. L. (2015). Environmental policies for sustainable
development: an analysis of the drivers of proactive environmental strategies in the
service sector. Business Strategy and the Environment, 24(8), 802-818.
Gonsen, R. (2016). Technological capabilities in developing countries: Industrial biotechnology
in Mexico (pp. 5-6). Springer.
Hickman, C. R., & Silva, M. A. (2018). Creating excellence: Managing corporate culture,
strategy, and change in the new age (pp.40-45). Routledge
Lazaroiu, G. (2015). The role of the management consultancy industry in the knowledge
economy. Psychosociological Issues in Human Resource Management, 3(2), 71-76.
Nissen, V. (2018). Digital transformation of the consulting industry—introduction and overview.
In Digital Transformation of the Consulting Industry (pp. 1-58). Springer, Cham.
Poulfelt, F., Olson, T. H., Bhambri, A., & Greiner, L. (2017). The changing global consulting
industry. In Management Consulting Today and Tomorrow (pp. 5-36). Routledge.
Sabirov, I. T., Ponkratova, L. A., Gracheva, N. A., Kiselev, S. V., Zaitzeva, N. A., Fatikhova, L.
E., &Chudnovskiy, A. D. (2015). The formation and development trends of the
consulting market in Russia. Mediterranean Journal of Social Sciences, 6(2 S3), 188.
Siyanbola, W., &Olamade, O. (2016). Innovation systems and capabilities in developing
regions: concepts, issues and cases (pp. 30-32). Routledge.

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Treichler, C. (2019). Consulting Industry and Market Trends: A Two-Sided View. In Advances
in Consulting Research (pp. 253-272). Springer, Cham.
Werth, D., &Greff, T. (2018). Scalability in consulting: insights into the scaling capabilities of
business models by digital technologies in consulting industry. In Digital Transformation
of the Consulting Industry (pp. 117-135). Springer, Cham.