How to determine which department is Front Office (Revenue generating/client facing) ?

Dear WSO members,
I am about to graduate (BSc IT) and I came across this forum which was very beneficial for me. I am kind of interested in strategy consulting. Once when I was an intern in KPMG, one system admin at ITS department told me that none from the department got promoted in the last 2 years and advised me to go for client-facing consulting jobs. He said whichever department that generates revenue for a company will be "properly taken care of " and I cant stop thinking about it. I want to land on the right spot from my first job itself and there is this constant conflict of not to make a wrong choice and end up like the system admin. My questions are:
1. How to determine which departments of a company is Front Office ( as I noticed that they get better pay and promotion chances). I believe FO can be identified by looking at who mainly generates revenue for a company and mostly faces the client. Lets say the examples are Big 4s, how to know which domains are FO?
2. Is consulting considered FO? What about Risk Assurance/ Risk Advisory or just Advisory (I think it's the same as consulting)? It's a bit confusing because in Deloitte there is S&O and I saw in another website that ITS and Operations are Back Office.
3. If I did IT, can I still go into strategy consulting ?

I'm sorry if there are any errors and for the long paragraphs as this is my first posting. Thanks in advance. Cheers.

 

Hi Daniel-Ryan1, whoops, looks like nobody chimed in here.... maybe one of these discussions below is relevant:

  • Move from back office to middle office to front office a FO position. My question is, which of the following moves should I take in order to maximize my ... this country. My long term goal is to end up in a FO role (investment banking, asset/investment ... management). The problem is, I can't network with the FO guys as they are sitting in hubs like London and ...
  • The Front Office of a Back Office is a Back Office definitely felt that it was more BO than FO. By definition, FO is client facing and revenue generating, both ... Hey guys, The question I want to ask is whether audit at a Big 4 is actually considered FO in the ... offer at Big 4, which will more likely let me exit to the real FO at a bank? D
  • Is this a front office position?- ICM group a client relationship management group embedded within Front Office Markets. We are a client facing ... FO BO MO? The Europe, Middle East and Africa (EMEA) Investor Client Management (ICM) group are ... cross-bank relationship team. The EMEA ICM group aims to deepen, develop and maintain relationships with J.P. ...
  • middle office to front office. whats the best strategy? a BB in their Operations program and was placed within a back office group for two years. Moved on to ... I graduated college and I have still not been able to break into the revenue generating side of the business ... a middle office role in sept 2010 and have been there ever since. It will be about 5 years since ...
  • How to Go From Back Office to Front Office to the front office after getting some experience. the front office is where i ultimately want to be. ... this is not a simple transition to make. Moving between back office / middle office and front office at ... Front and Back Office on WSO
  • Breaking out of Ops into the Front Office background how difficult is it to get into entry level banking or buy/sell side research? B.A. Finance CFA ... I currently work as a middle office analyst at a fairly large asset managment firm supporting its ... HY fixed income group. I took this position because of the firm's rep and my hope wasto work my ...
  • Is this a front-office job? direction of a manager in a group of experienced professionals How You Will Contribute: * You will be part ... Solutions (TS) group is responsible for partnering with the lines of business on ensuring they remain ... technology. The Technology Solutions Summer Associate Program is unique in that it allows summer students to ...
  • More suggestions...

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Generally speaking, FO = revenue generating and BO = cost centre (that supports the company, obviously).

As you mentioned, FO is a good place to be just because you know you're actually generating money for the company. There is a clear business case to not only keep you but also help you develop and grow. If the company is hurting on profitability, cuts to cost centres and "right sizing" is typically the first (and easiest) step.

For Big 4, ITS and, ops, internal marketing, etc. is back office. All of the other ones you mentioned are all technically FO because those teams are billed out to clients (S&O, risk advisory, risk assurance, accounting, etc.). Generally, anything client facing at these firms is FO.

Now, that being said, there is "tiering" at the big 4 when it comes to the FO. Some service lines are more profitable than others. Some service lines are more stable than others. For example, accounting/assurance/internal audit is not very profitable, but it is stable (companies are legally required to be audited after all). Strategy within S&O is the most profitable, but it can also be a shaky source of revenue depending on the economy.

Generally speaking, the more profitable your service line, the higher your pay.

Editing to add: just because something isn't front office, doesn't mean that it's not "good". It's always context dependent. People just use terms like FO and BO as a proxy for "perceived value" to upper management. Value is the key metric here. For example, at many tech companies, the data scientists are not really "FO", but most companies still value their insights and invest in those teams.

 

A very good explanation indeed Matthews. Thanks.
Is there any way for us to know that which department/service line is more profitable (if we are looking at other companies as every company is different) ? Because we cant be asking this to the recruiter/ HR person right? Or the formula is fixed where (just my theory) Consulting/ Strategy/ IB are always the most profitable in any industry/ company ? I know it sounds vague and unrealistic but couldn't find a better way to put it together.

 

An idea among others, for traditional service companies (e.g. Big 4, other consulting, banking) you could compare reported salaries (entry-level should be the easiest) across departments/ business units of the same company. Glassdoor, etc. should have that.

As an example, ACN Strat is more profitable than ACN MC and pays better at the entry level in most regions.

 

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