Consulting giants like PwC are betting big on tech alliances, and it's not hard to see why. In FY23, PwC's alliance-focused Go-To-Market strategies drove a staggering đ 40% increase in revenue, while overall growth was a modest 5.6%.
How? Let's look into the strategies reshaping the consulting landscape.
PWC is a massive business with $53.1 Bn in annual revenue. Weâll focus on consulting only, which is 43% of it or $22.6 Bn. In FY23, PwC consulting (advisory) revenue growth was 13% outpacing the company's average.
However, the most significant growth came from alliances, underscoring why PwCâand their consulting competitorsâare emphasizing ecosystem and tech alliances more than ever.
đŻ Alliances and Managed Services are Growing 7X Faster
PwC credits much of their consulting business's growth to the joint GTM and digital transformation needs of their clients, which apparently remains a hot trend. (Surprise!)
PwC emphasizes that âwe have strengthened our relationships with our key technology Alliance partners to go-to-market and deliver sustained outcomes, which has driven a 40% increase in revenues from alliances.
Weâve also met the demand of our clients to deliver across the entire value chain - from strategy and implementation to run and operate - driving significant growth in our Managed Services business.â
PwCâs notable alliance partners include AWS, Microsoft, Google, Oracle, Workday, etc. In fact, PwC either won or was a finalist in 14 categories at the Microsoft Partner of the Year Awards in 2023.
đľ Investing Billions in AI and Cloud
PwC is also investing ~$2Bn to grow their AI capabilities, collaborating with leaders like Microsoft and AWS, while integrating AI tools across their 300,000-strong workforce to drive better client services.
PwCâs growth strategy also included 17 acquisitions and 5 strategic investments in FY23, to expand their capabilities âparticularly in the areas of technology consulting and cloudâ.
âď¸ Strategic collaboration with hyperscalers
Finally PwCâs announcement of a three-year Strategic Collaboration Agreement with Amazon Web Services (AWS) in September aims to deliver $800M of value to consulting clients.
This partnerships will extend PwCâs ability to "drive business reinvention," particularly in cloud migration and modernization, by essentially integrating AWSâs cloud infrastructure and services into transformation projects for their clients.
PwC already employs 5,200+ AWS-certified professionals and engaged in 200+ projects across Fortune 500 companies.
đ The consulting market, worth $266.3Bn (Gartner '22), is being reshaped by digital business transformation, cloud migration, and now, AI. AI is the fuel for cloud consumption and a significant growth driver for services of consulting firms.
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