Future of consulting
What do you guys think the future of consulting practice will look like for companies like bcg Deloitte in 5 years?#consulting #tech
Insourcing is very real in the F500. Also the low margin outsourcers are hiring up skilled people in the US & Europe. Big 3/4 reputation continues to erode slowly due to involvement in big scandals/failed delivery, meanwhile outsourcing firms grow credible competition at a fraction of the cost and F500s grow substantial internal consulting teams. Big 3/4 are forced to price compete, entering into low margin high volume outsourcing to offset the high rates of a slowly declining business. Hint: if you’ve been paying attention, you’ve already seen this happening over the past 5 years.
Interesting perspective. I concur with your assessment, although the other change that has occurred is that the big 3/4 focus a lot more on government projects since the dawn of the decade (national healthcare, middle east projects, etc.). I wonder how this will scale in the long run, for example, will the core business dwindle and pave way for the low cost engagements- I'm not ready to believe this.
Government projects are lower margin because rates are capped but it’s one of the few places that will pay for PMO consulting done by locals so that’s why Big 4 in particular latched on. Pull your head out of the sand- clients are on to the games of the Big 3/4. Adapt accordingly.
What does consulting even do it’s such a vague term
Have you ever worked with consultants? They do nothing unless they're internal lol. I used to be one then went internal, and the difference is night and day.
What does engineering even do? such a vague term...
Strategy market will be 99% captured by MBB. Boutique/big 4 firms will have to specialize entirely (OW will only do finance clients, LEK will only do CDD’s, etc). Eventually this will lead to a lot of consolidation. Big 4’s will degenerate into WITCH tier firms. Eventually MBB margins will shrink as companies build out robust internal corporate strategy functions. Pay will correspondingly decrease. Consulting already is not a field for smart people any more, and with the decrease in pay, even fewer smart people will seek out consulting firms. Strategy consulting will no longer be a bunch of 23 year old associates making pretty decks, but just a few ex industry partners advising senior execs based on experience, or hosting educational seminars on the industry for clients. Being a “career” consultant won’t really be a thing anymore.
You have some misunderstanding of MBB. Since the early 2010s MBB has been 80% operations and implementation work. Pure strategy died a long time ago sometime in the 00s. Almost no client pays MBB to build strategy decks anymore
When I was at M, it seemed like the vast majority of hires were generalists. Where do these consultants go? They have no operations or implementation skills.
It will be a slow death, but it’s happening. 3 big reasons. 1) The computer is leveling the playing field. Data is available and strategy is easily taught. 2) Companies realize that all they offer are powerpoint decks built by sleep-deprived recent graduates who have confidence, but aren’t even close to subject matter experts. You’d pay 500k for that? 3) Consultant quality is declining. Firms keep expanding. Thousands of MBB alums, so everyone’s now got a story of an ex-MBB guy they worked with who wasn’t all that impressive
Computers and computer managed data have been around for decades, you should know that since you work for Apple… I suggest you talk to a real executive at your company to understand why they hire consulting services, don’t you think they would notice the lack of value? It’s cute that you feel so righteous in your little world.
@Deloitte No where near to the extent that it is now. Look at how much computing and data visualization companies/tools have grown in the last decade. Just think about how young the cloud really is (i.e. AWS). Computers have existed for a long time now, but the computing power has exploded in the last decade. Any dimwit with a pulse can go in and write a SQL query over massive datasets and create a pretty graph in a matter of minutes today. Was not possible 10 years ago.
They’ll be used whenever companies or governments need to laundry money or avoid taxes. They will be used by the same companies or governments when they need to audit on why and how much money was “misplaced” It’s the perfect business. Snake eating its own tail. They create problems that they need to solve afterwards. Again, and again, and again The other areas of business will erode
A perfect example of how SWEs see the world
In 5 years, it’s moving towards the “global” model with “global” perspectives >>designated streets
spoken like an ignoramus consultant
More and more technology related consulting to cross sale services and products
Dead ☠️
Hi, I have 4.5 years of experience in Market Research and Intelligence with a KPO in India. I am primarily involved in creating custom market intelligence reports (on market entry, market sizing, competitive intelligence, etc.) Overall the opportunities are low and overall pay is also low as compared to tech or consulting industry. I have an MBA and an engineering degree from Tier-2 colleges. I am evaluating options to enter the IT industry and exploring the role of a Business Analyst. Can someone guide or explain how to do that?
Nothing much will change apart from there being more vague charts with numbers thrown in slide decks cuz "big data" and "ai".
I hate consultants. They are vapid, superficial, pseudo intellectuals with insincere personalities and mediocre skills.
@whoopsie! Respectfully fuck off I was a technical consultant (not this MBA crap) and gave my heart and soul to each customer