Of all of the major Japanese conglomerates that have pushed consulting services, Hitachi Consulting (HC) has been the most diligent. Sixteen months ago, Hitachi CEO Kazuo Furukawa claimed that "we will make the Hitachi Consulting brand a global leader in providing IT and business consulting services." The company has backed that declaration by growing to more than 1,800 professionals and $400 million in revenues, with 15% growth and a series of strategic acquisitions.
The genesis of HC came from Hitachi's acquisition of Grant Thornton's consulting practice. But HC President and CEO Michael Travis and COO Philip Parr are both veterans of Arthur Andersen Business Consulting, elements of which HC acquired in 2002. Like the old AABC, Hitachi Consutling maintains a focused and balanced approach to advisory services. Leveraging the parent company's areas of emphasis, more than half of HC's revenues come from three vertical industries (high-tech, communications, and manufacturing). The goal, according to Travis, is to be a top five provider in these industries.
While HC very much competes in the operations management (OM) space, its primary competition going forward will come from the former Big Four firms that have reconstituted consulting through business advisory services (BAS). These two key service areas overlap the due diligence type services offered by BAS providers.
HC will continue its geographic expansion as well. Currently, 65% of the revenue comes from the US and 29% from Japan. The company's European footprint constitutes the remainder - and most of that is derived from the acquisitions of UK consultancies Dove Consulting and Impact Plus in 2006. HC is still actively seeking additional acquisitions in Western Europe.
Consultants News, July 2007
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