Arthur Andersen Pens Strategy For Consultancy Arm

To this effect, Arthur Andersen is increasing the staff strength of its business consulting division from 80 to 120-130.

Within Andersen Worldwide, high-end business consulting was done out of Andersen Consulting, while Arthur Andersen handled the other businesses like audit and tax consultancy, though it did offer business consultancy to mid-market companies. On August 8, the two separated and the option of getting into high-end business consultancy opened for Arthur Andersen.

Globally, business consulting is a more profitable business (higher-end business being all the more lucrative) than audit and tax consultancy and the window is now open to Arthur Andersen.

In India, anticipating a split, Arthur Andersen had set up the business consulting division in April 1999. Since then it has been pitching for business along with other consultants including Andersen Consulting. The division started with a team of 12, which has now grown to 80.

According to Parikh, Arthur Andersen has drawn up a list of prospective clients in four business areas: financial services; energy and utilities; technology, the media and communications; and pharmaceuticals and healthcare.

But will Arthur Andersen be just another consultancy? "Our unique selling proposition will be that we will offer end-to-end total solutions to our customers," says Parikh. In other words, Arthur Andersen will use its expertise in areas like taxation and audit to offer a complete bundle of solutions to its customers.

"We will look at creating the new economy mindset in a company. Our effort will be to try and identify value drivers in a company," Parikh said. In fact, the motto adopted by the business consulting division is: "Partners in the new economy."

Business consulting, according to Parikh, is not demand-driven. "Instead, we have to approach the companies with what we can get to the table," he said.

According to the terms of separation between Andersen Consulting and Arthur Andersen, the brand Andersen Consulting will revert top Arthur Andersen in December 2000. A decision is yet to be taken if Arthur Andersen will use the brand for its own business consulting division.