Monday, January 13, 2025

Deloitte India Sets Its Ambitious Growth Plan by 2027

Deloitte India has set a bold goal to double its annual revenue to ₹20,000 crore by 2027, aiming to become the first among the Big Four firms to achieve this milestone, according to Economic Times.

Romal Shetty, Deloitte’s CEO for South Asia, shared this target in an interview with ET. The firm surpassed ₹10,000 crore in revenue in FY24, marking a 30% increase and emerging as the fastest-growing Big Four firm in India.

Deloitte Growth Achievements and Aspirations

Deloitte has been rapidly expanding, with a revenue growth rate of 30% in FY24, the highest among the Big Four. Shetty stated that Deloitte is the top global professional services firm by revenue and intends to replicate this success in India.

The firm has set an additional goal to reach $5 billion in revenue by 2030. To meet these targets, Deloitte has been aggressively hiring, adding around 2,500 employees and over 300 partners and executive directors between June 2023 and May 2024.

Sectoral and Regional Expansion

Deloitte’s consulting and risk advisory services have experienced significant growth, with consulting up 45% and risk advisory growing 35-36%.

The consulting practice is now the largest domestic practice in India. Deloitte is also focusing on expanding into tier II cities, having established new centres in Bhubaneswar and Coimbatore.

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Shetty highlighted that Coimbatore has already surpassed its planned capacity of 1,000 employees, and Bhubaneswar may soon follow suit.

Strategic Investments and Innovations

Recently, Deloitte invested in a state-of-the-art technology centre in Bengaluru and formed an innovation team of 200 senior professionals dedicated to developing new solutions.

This team operates independently of revenue targets, focusing solely on innovation. Additionally, Deloitte has refined its go-to-market strategy, concentrating on key sectors like financial services, government, semiconductors, and space.

Workforce Changes and Future Outlook

Deloitte’s recent voluntary retirement scheme for senior partners has been a notable development. Shetty clarified that the scheme was not part of any restructuring but rather an opportunity for long-serving partners to explore new opportunities while maintaining connections with the firm.

He said there is no plan to extend it.

Regulatory Challenges and Firm’s Position

One of Deloitte’s major concerns is the penalties imposed by the ICAI disciplinary committee, which have included issues related to association with global entities and resource sharing.

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Domestically, the company employs nearly 5,000 CAs, with another 5,000 globally, totaling around 10,000 CAs.

Shetty emphasized the need for a comprehensive consultation process involving all stakeholders to address these challenges. He also highlighted Deloitte’s long-standing presence and the significant contribution of its CAs.

Employee and Partner Growth

Deloitte India currently employs over 150,000 people and has more than 3,300 partners. The firm is also seeing a rise in the number of large client engagements, with several projects involving up to 800 people.

The firm’s rapid growth and strategic expansions reflect its commitment to maintaining a leading position in the competitive professional services market.

Conclusion

With its ambitious revenue targets and strategic investments, Deloitte India is positioning itself for significant growth. By expanding its workforce, investing in technology and innovation, and focusing on key market sectors, Deloitte aims to achieve its goal of becoming the first Big Four firm in India to reach ₹20,000 crore in revenue by 2027.


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