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Mumbai: The latest round of partner promotions has pushed the Indian arms of three of the Big Four accounting firms past a symbolic milestone: Deloitte, PwC and EY each now has more than 1,000 partners, associate partners and executive directors. But the rapid expansion is also beginning to test the limits of a partnership model built around audit, deals and tax, as technology consulting becomes the industry’s biggest growth engine.PwC admitted 35 professionals to its equity partnership and promoted 66 to non-equity partner and executive director roles, taking its leadership strength to 1,001. Deloitte elevated 56 partners and 52 executive directors, lifting its tally to 1,076. EY promoted more than 100 leaders into partners and non-equity partners, pushing its leadership ranks beyond 1,200. KPMG, the other Big Four, currently has around 650 partners and associate partners and their number is set to grow with 85-90 promotions expected shortly.Also Read: Big Six tighten grip on India’s audit market despite mandatory rotation
Much of the growth has come through non-equity partners, associate partners and executive directors-all senior firm professionals who typically have signing authority, lead major client mandates and form part of the leadership pipeline, but do not share the profit pool.Technology consulting is driving partner growth across the Big Four, accounting for over half of Deloitte’s partners, more than 40% at PwC, 35-40% at KPMG and over 500 partners at EY.”The challenge today is building a partnership that can accommodate three very different businesses under one roof-our traditional practices, fast-growing technology services and the businesses of tomorrow built around products, platforms and AI-led models,” said Romal Shetty, CEO, Deloitte South Asia. “We are adding more than 1,000 people a month while simultaneously deploying AI at scale. That requires a leadership structure that can manage growth, specialisation and constant reinvention.”Also Read: Big Four firms’ India operations shine amid global slumpThe changing business mix is also altering the economics of partnership. Historically, advisory businesses benefited from stable client portfolios and recurring work. Today, barring audit, partners are increasingly expected to generate business, deepen client relationships and oversee delivery simultaneously. As firms grow, more routine responsibilities are moving to directors and fixed-income partners, leaving equity partnership for those willing to take on greater risk.”Going forward, the new crop of leaders will be those who can embrace and drive change,” PwC India chairman Sanjeev Krishan said. “Firms are at an inflection point where scale, tech and talent are reshaping the business, and leaders will have to navigate disruption, build new capabilities and reinvent themselves more frequently than before.”Aggressive hiring is also creating a new challenge as expanding partner ranks intensifies competition for leadership roles, profit pools and advancement opportunities. Deloitte has added about 160-170 partners and executive directors from outside over two years. KPMG has hired 50-60 partners laterally during the same period, while PwC added around 450 partners over four years.”As the firm continues to grow, preserving our spirit of partnership plays a significant role. As we add capabilities, we are deliberate and selective, focusing on strengthening the firm’s expertise without compromising our values. We will not pursue team lifts unless they align with our core criteria.” said KPMG India CEO Yezdi Nagporewalla.EY did not respond to ET’s questions. To accommodate leadership aspirations of talented partners, firm partnerships have adopted different succession models. Deloitte, PwC and KPMG elect their managing partners periodically but at EY, chairman Rajiv Memani-his father KN Memani was a CEO, too-has held on to his position for more than two decades.Compensation is changing too. According to people familiar with the remuneration structures of these firms, profit shares are increasingly linked to individual performance, business generation and delivery outcomes. The result is greater volatility in partner earnings, particularly during weaker years.The shift is fundamentally changing what it means to be a partner. Traditionally, audit and tax partners built practices around long-standing client relationships, quality delivery, recurring assignments and lean teams. Technology partners, by contrast, are specialists in areas such as cloud, cybersecurity and AI, often leading large delivery organisations and complex transformation programmes where value is driven by specialisation, scale and outcome rather than individual relationships and partner-led delivery alone.(You can now subscribe to our Economic Times WhatsApp channel)
Big Four accounting firmstechnology consulting growthAI in accountingDeloitte partnersbusiness transformation in consultingpartner compensation changesPwC partner promotions
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(You can now subscribe to our Economic Times WhatsApp channel)
Big Four accounting firmstechnology consulting growthAI in accountingDeloitte partnersbusiness transformation in consultingpartner compensation changesPwC partner promotions
(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.)
Subscribe to The Economic Times Prime and read the ET ePaper online.
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