Overview
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Hong Kong is a leading management consulting centre in the region. Its status as one of the world's leading business centres has attracted most internationally renowned consulting firms to build their presence in Hong Kong.
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The Chinese mainland is regarded as offering the highest growth potential for exporting Hong Kong's management consulting services. Rapid export demand is expected from operations and process management and corporate and business strategy.
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The CEPA agreement allows Hong Kong service suppliers (HKSS) to establish wholly-owned management consulting operations with a minimum registered capital requirement of RMB 30,000. Besides, HKSS are allowed to provide project management services other than for construction in services.
Industry Data
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Business Management and Consultancy Services
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Dec 2007
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Number of Establishment
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4,490
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Employment
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27,860
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Source: Employment & Vacancies Statistics, Census and Statistics Department
Range of Service
A wide range of services are provided by the management consulting industry. They can be broadly classified into six sectors:
General management - including corporate and business strategy, business process re-engineering and change management.
Financial management - including analysis of capital investment proposal, development of accounting and budgetary control system, and business valuations.
Marketing management - including formulation of marketing strategy and customer service and pricing policies.
Production management - including logistic study, supply chain, material requirement planning, manufacturing resource planning, and just-in-time production.
Human resources management - including actuarial, salary survey, job evaluation and pay scale assessment, performance management and training.
Information technology management - strategic study and systems development (excluding technical or programming aspects in hardware and software development).
Service Providers
The consulting industry in Hong Kong is renowned for its leading position in the region, particularly in areas of logistics, telecommunication strategy, privatization, mobile strategy, service quality and governance. Most of the world's leading consulting firms have established their presence in Hong Kong. They are attracted by our pool of experienced professionals, easy access to technology and rich client base. Hong Kong was home to 3,882 regional headquarters and regional offices as of 2008. As a renowned international business centre, Hong Kong is well-positioned to provide consultancy services to multinational corporations and other companies in Hong Kong, on the Chinese mainland and in the region.
In addition, amongst the consulting firms in Hong Kong, the majority of them are local, small- to medium-sized general management consulting firms, which are typically set up by former consultants of the international players or former senior executives of multinational corporations. Many of the consulting firms in Hong Kong are engaged in human resources consulting services, business administration and management, overseas business consultancy and marketing and sales. Besides, most of these local firms are serving the Pearl River Delta (PRD) region.
The profession is represented by the Management Consultancies Association of Hong Kong. In addition, the Insitute of Management Consultants (IMCHK), a member of the International Council of of Management Consulting Institute (ICMCI), serves to push the level of professionalism and provides examinations for certifying management consultants with an internetional designation which is the Certified Management Consultant (CMC).
Exports
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Business and Management Consultancy & Public Relation Services
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2006
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Exports (US$ mn)
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2,178
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Contribution to total services exports (%)
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3.1
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Source: Report on Hong Kong Trade in Services Statistics for 2006, Census and Statistics Department
Many of the management consulting companies have served beyond Hong Kong's boundary, mainly the Chinese mainland and the rest of the region. Many of the companies have their headquarters established in Hong Kong. Exports of business and management consultancy & public relations services amounted to US$2,178 million in 2006, of which US$ 210 million, or 9.6%, was ascribed to the Chinese mainland.
Closer Economic Partnership Arrangement between Hong Kong and the Mainland (CEPA)
The CEPA agreement allows Hong Kong Service Supplier (HKSS) to establish wholly-owned management consulting operations with a minimum registered capital requirement of RMB 30,000. Under Supplement IV to CEPA, effective from January 2008, HKSS can also provide project management services other than for construction in services.
For management consulting companies to qualify as Hong Kong Service Supplier (HKSS), the companies must be incorporated or registered in Hong Kong and have engaged in the provision of management consulting services for 3 years or more. As of November 2008, 30 management consulting companies had obtained HKSS certificates out of 37 applications.
The Management Consulting Committee (MCC) of the China Enterprise Confederation (CEC) is the institute member of the International Council of of Management Consulting Institute (ICMCI) in China. MCC supports the development of management consulting industry in China and provides professional qualification examinations of Certified Management Consultant (CMC).
