Industry convergence: A new opportunity for consulting firms

Globalisation has been a source of economic growth for decades, arguably millennia. But, even among organisations that operate on a mostly or entirely global basis, 42% say that business has become more regional/local. Forty-seven percent blame US tariffs and the uncertainty that accompanies them. They also face significant challenges around complexity and rising costs. 

Organisations that have only a local or regional footprint still see globalisation as a source of growth, helping them access new markets and better meet the needs of their customers. But for companies that already have an extensive geographic footprint, globalisation is now more about resilience: new sources of capital, supply chain resilience, and access to specialist skills. 

The convergence opportunity 

With geographic growth more difficult, especially for the biggest, most international companies, attention has turned to opportunities in adjacent sectors. 

Of course, industry convergence is nothing new. We’ve already seen sectors start to overlap, with the goal of driving innovation, developing new products and services, and creating new, shared profit pools. We’re now quite accustomed to the idea that supermarkets will sell us travel insurance, and that health insurance companies offer gym membership. 

But initiatives around convergence are increasing. Nineteen percent of clients we surveyed say that they haven’t looked at opportunities beyond their industry, but only 1% that they won’t do so in the next three years. 

The downside to this increased activity is that convergence is, well, converging—on technology. Forty-seven percent of clients said they’re most likely to look to technology as one of their top two new opportunities over the next three years, while 32% said they had already made steps to diversify into that particular sector over any other. Outside of technology, energy, utilities & resources is the next most likely sector, overtaking manufacturing. Financial services companies see opportunities in consumer & retail. Energy, utilities & resources organisations have their sights on financial services. Manufacturers are looking to energy, utilities & resources. 

Where do consultants come in? 

Although the economic grass may be greener on the other side of your sector’s fence, getting over that fence is a challenge.  

Organisations, honed for the needs of the industry they’ve traditionally operated in, may well lack the expertise and experience to make money from convergence. As a healthcare executive observed in a recent interview: “Everyone keeps telling us that our data is worth billions. The reality is that we’re barely making any money at all from it, because we don’t understand how to do so.”  

Consultants are well-positioned to join the dots, to connect clients in one industry with experts in another. “But,” cautions our healthcare executive, “consultants are being too quick to come to us with ideas that need to be properly fleshed out.”  

Perhaps the real opportunity here, then, lies in a firm’s ecosystem of highly specialised experts—the type of people who can develop workable, profitable, and distinctive approaches to convergence. It may be no coincidence that 89% of clients who think the world is becoming more geographically fractured say that they usually take a firm’s ecosystem into account when deciding whether to hire them. 

What should firms do next? 

Source tracks the trends shaping the consulting market. To understand more about how developments like industry convergence, clients’ growth aspirations, or the value-add attached to AI-enabled services could provide new opportunities, contact us for a Leadership Briefing that breaks down the specific implications for your firm.