What's the use of so called consultant companies?
I am not talking about good specialized consultants in react or elastic or something useful, but the one with short names like EY who's only purpose seems to be to use tax money or some clueless middle manager fund to create powerpoints and SAP projects They don't contribute to open source, have own software solutions or creating any platforms.
A lot of regulatory compliance requires using a 3rd party review to get a non opinionated review.
So like I thought, following up some pointless framework called BHT45 by burecratic lawmakers
Justify an already decided direction as a third party approval by rubber stamping after morphing the numbers for the desired outcome.
Layoffs disguised as synergies
Could we take a step back here and leverage our assets to create a deep dive into the low hanging fruit picking possibilities?
That is the low hanging fruit. Fortifying the balance sheet and cash flow are suddenly important again.
Give management justification for making changes while keeping blame for any failure from ever being owned by them
So you do know that though you have $100k in bank still the State wants you to carry auto Insurance? Same thing with consultants, they fly in to tell something we know in much structured and fancy slang. Sometimes they bring in plethora of experience (perspectives) from different set of Industries which may not be readily available or accessible to average minds.
It’s mainly to reassure upper management what they already know. It’s easier to justify a lay-off after hearing it from a McKinsey consultant, for example.
There is so much consulting firms like the one you mentioned do. EY example provides audit services (check 10ks of google,fb), tax services (you need this expertise to keep large corporations runnings), Risk/internal audit - identifying financial risks to figure out issues in operations and avoid things like lay off, management and strategy consulting - advising upper management on what do next and how to do it, technology consulting - this is where you will find your react and PowerPoints are the deliverable you see but a lot of analysis goes behind the numbers you see on it. Executives don't have time to go through the code and the algorithms you may have used to arrive to your conclusion, technology consulting - this where services related to technology and data are provided - think reporting capabilities, providing analytical services (like machine learning to figure out what to forecast), setting up your digital, tech, cloud etc, providing project and program management services and finally the very miniscule set of people that work on react and staff augmentation (hate this one but some companies only do this). Not every company has the expertise they need to run the company and it makes zero sense to hire a team full time to solve a few problem. Same reason you would go to a tax consultant for taxes if you forsee some complications with your taxes and not hire one full time. Also, implementation of SAP is not a simple task. Any ERP implementation requires significant effort and if the company hires people internally to do that, come some loss in revenue, they will hire a management consulting firm who will come in and recommend you get rid of the internal folks since ERP is now installed. So you want non staff aug consultants in your company for either kicking off new projects that you don't have expertise in or setting something new up because they will then leave once work is done and your company can happily reap benefits
This sounds like a sales pitch
I was informing you on how and why consulting works. I guess you were not looking to learn and were just stating your decision. Fine by me. Any description of what a company does is going to sound like a sales pitch in some way. Btw, consulting is a very hard job and I am going to be leaving it soon because I can make better $ with a better work life balance in industry. However, I have immense respect for a lot of the consulting folks who are working 12 to 14 hours days away from home and I always will. Not everyone will understand why a multi billion dollar industry exists.
You do realize writing software isn’t the only useful thing in the world...
Yes you can also make clothes or sell something or be a doctor