New Delhi : India’s leading consulting and accounting firms including Aon, Deloitte, EY and KPMG are taking steps to rein in staff spending as their corporate clients are slow to deliver new projects.
For senior partners, travel and accommodation should be approved and planned well to avoid last-minute hikes in airfare and hotel rates. In addition, limits have been placed on entertainment bills related to meetings with clients, and counter-offers to candidates are no longer permitted. “One of the saving schemes is to focus on the travel budget. There is buzz that all travel planning should be done a few weeks in advance to get the cheapest flight tickets. The focus will be on hotel stays so that even among the 5-star rated ones one can get a cheaper deal,” said a senior executive working in one of the above mentioned consulting companies. Stopped,” said the executive.
Mint had reported in March that demand for business and premium economy tickets had increased as compared to the pandemic period and the pre-pandemic period. Travel agency Thomas Cook India saw a 50% jump in business class travel compared to last year as corporate travel resumed. Overall, the demand for premium seats has increased by 5-10% in 2019-20 as compared to the pre-pandemic year. The hotel sector has also seen demand exceed supply as Covid-led restrictions have been eased, sparking ‘revenge tourism’. The sharp look at employee budgets comes amid the global economic crisis, prompting consulting firms to reduce their manpower costs after a year-long hiring frenzy. Senior partners at one of the Big Four (KPMG, PwC, Deloitte and EY) say counter-offers in candidate talks are being discouraged, and growth is back to pre-Covid levels. “When the markets opened two years after the pandemic, we gave a hike of over 50% to our top talent as a counter-offer. This year, the frenzy has stopped, we have recruited the workforce, and even the best talent will get a 15-20% hike,” said a Delhi-based partner who did not wish to be named.
Arjun Vaidyanathan, Chief Operating Officer, KPMG in India, said, “Looking for cost efficiency in operations is a continuous journey and is not limited to just a few areas. Where necessary, costs are always reviewed and adjusted in relation to business requirements. We constantly strive to improve efficiency, and in order to achieve this, we will need to incur certain costs. Therefore, taking a one-sided approach to costs may be inappropriate, as it Depending on the business environment and requirements, he said there is no bar on recruitment and will continue on a case-to-case basis.
EY, Deloitte and Aon did not respond to Mint’s queries.
“Our entertainment budgets are limited, and now, approval is required if costs exceed a certain amount. It wasn’t even last year when we could pay the bills and the company wouldn’t bat an eyelid. Now, We need some of the sanctioned budget, especially while traveling,” said another senior partner working with the consulting firm cited above.
While the Indian units remain relatively positive on their growth trajectory, the parent and other global peers are going through tough times.
Consulting majors McKinsey & Company and Bain & Company are delaying dates for new B-school hires and in some cases asking them to work for a nonprofit or learn a new skill instead, according to a Wall Street Journal report. are paying. starting their work. According to reports, EY will reduce its workforce by 5% and rival KPMG is expected to reduce its workforce by 2%, both in the US.
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