Globalising to expand knowledge and client base is the challenge for consulting firms and the Asia Pacific region is seen offering ample opportunity for growth for players.

"With the North American markets stagnating, it is Asian countries like China and India which are markets with growth potential. In China, we see 20-30 per cent growth in consulting business a 15 per cent growth in India in the next few years," Vivek R Gupta, vice-president and managing director (Indian operations), A T Kearney, said at a seminar organised by Indian Institute of Foreign Trade.

He added North America accounted for 60 per cent of total consultancy business followed by Europe whose share was 30 per cent. Asia had the lowest proportion in consultancy business and hence the greatest potential.

Gupta said a global consulting firm had an edge as it could offer range of solutions and better quality of work due to international experience.

Speaking on the occasion, Sanjay Jain, country managing director for Accenture, the software consulting firm said that to compete in a global environment, traditional consulting firms should start looking at the partner model.

"Partner Model means that the relationship with the client does not end with providing solutions, it also includes overseeing the implementation of the recommendations given," he said.

Jain said that the business context, which the consulting firms had to deal with was changing over time with corporate clients conducting business in a volatile environment and adhering to stringent disclosure and corporate governance norms.

"Greater uncertainty in markets is resulting in shorter reaction times and focus on short term results, and the consultancy firms have to provide services keeping that in mind," he said.

The seminar also touched on the issue of corporate governance, with Arun Maira, chairman, Boston Consulting Group India Practice being of the view that corporate governance could be brought about through a change in the entire value system, which emphasised on protecting the interests of shareholders.

This change in mind-set could be brought about only if there was a realisation that good corporate governance was important for winning confidence of investors and clients, which could give firms a competitive edge over others.

Maira said that in Indian context, the challenge was transparency of the ownership structure of family run companies that was a feature unique to India.

He cited the example of Enron to stress the fact that following all accepted corporate governance requirements laid down by law did not ensure good governance.