The combined entity will invest aggressively in scaling up the India advisory practice and growing client servicing capabilities in India.
Notably, the tax and audit practice—managed through affiliate BSR & Co— will likely remain separate, although this detail is still under discussion.
Termed “Project Himalaya” within KPMG, this endeavour has been quietly underway for several months and is spearheaded by KPMG India’s CEO, Yezdi Nagporewalla, along with select partners.
The new entity, when formed, is expected to soon grow to 50,000 people in its fold, and combined revenue just from India platforms would be more than $1 billion.
KPMG’s CEO shared a glimpse of this proposal with Indian partners at the ongoing Delhi partners’ meeting. KPMG India currently employs around 20,000 individuals in India and an additional 20,000 in KGS, its global capability centers.KPMG did not respond to the ET questionnaire.
As of now, specific details are being worked out, with insiders suggesting that KPMG India will operate under a similar structure in the near future.
The firm has experienced robust growth, notably a 30% increase in the last two years, with substantial contributions from technology consulting and risk service lines. Other service lines, such as tax and audit, have also seen growth exceeding 20%.
If this deal comes to fruition, KPMG India can further enhance service delivery, attract top-quality talent, and offer competitive compensation in a market where the demand for experienced professionals far exceeds the supply. Additionally, KPMG US and KPMG UK will elevate their service delivery capabilities through a robust delivery engine, combining high-touch expertise at scale with the cost advantage offered by India.
This move reflects a broader trend among the Big Four firms, who are addressing the challenges arising from conflicts of interest, a significant concern for global financial regulators.
Notably, EY’s attempt to globally separate its consulting and audit practices into distinct entities, known as “Project Everest,” faced a dramatic collapse due to partner misalignment.
Furthermore, on December 13, 2022, KPMG announced global revenues of $34.6 billion for the fiscal year ending on September 30, showcasing growth from $32.1 billion in 2021.
