The Indian divisions of Deloitte, PwC, EY, and KPMG achieved strong revenue growth in FY24, significantly outpacing their global counterparts.
Fueled by demand for consulting and technology services, their combined revenue is projected to exceed Rs 45,000 crore by FY25, according to The Economic Times.
Industry estimates place their FY24 revenues between Rs 38,500 crore and Rs 38,800 crore, highlighting their robust performance.
Consulting and Tax Services Drive Growth
Globally, the Big Four saw moderate revenue increases in FY24. KPMG led with a 5.4% rise to $38.4 billion, followed by EY at 3.9% ($51.2 billion), PwC at 3.7% ($55.4 billion), and Deloitte at 3.1% ($67.2 billion).
However, in India, growth was significantly higher.
EY recorded a 16-17% increase to over Rs 13,400 crore, Deloitte grew 29% to Rs 10,000 crore, PwC achieved 22% growth reaching Rs 9,200 crore, and KPMG grew by 5.5-10%, generating Rs 5,900-Rs 6,200 crore.
Consulting services were the primary contributor, adding over Rs 25,000 crore in FY24. This includes management, technology, and risk consulting, with EY alone generating over Rs 8,000 crore in this segment.
Tax services also remained critical, contributing over Rs 6,000 crore collectively. EY’s tax division alone accounted for Rs 1,900 crore.
GCCs and Future Prospects
Global capability centers (GCCs) played a significant role in driving revenue. These centers support clients in establishing and managing operations in India.
For EY, GCC-related work brought in Rs 3,600 crore in FY24. GCCs are expected to be a major growth driver in FY25 as firms continue to assist clients with India-based projects.
Consulting revenues are projected to reach Rs 30,000-Rs 32,000 crore by FY25.
However, tensions over revenue-sharing arrangements with global partners, particularly in the US, pose challenges for the Indian arms.
Challenges and Industry Trends
Despite solid growth, challenges remain. Economic uncertainties and slower technology transformation projects, particularly involving AI integration, have tempered the growth rate compared to previous years.
Workplace pressures have also gained attention following a tragic incident involving a 26-year-old EY employee in September 2024, sparking discussions on work-life balance.
Even non-Big Four firms, such as Grant Thornton Bharat, saw remarkable growth, reporting a 30% revenue increase in FY24.
Similar performance is expected in FY25, reflecting the broader strength of the professional services sector in India.
Despite challenges, the Indian divisions of the Big Four are on track for continued expansion, driven by consulting, tax services, and GCC-related work.
Note: We are also on WhatsApp, LinkedIn, Google News, and YouTube, to get the latest news updates, Subscribe to our Channels. WhatsApp– Click Here, Google News– Click Here, YouTube – Click Here, and LinkedIn– Click Here.
