BAIN, BCG, Mckinsey etc guys must be in good demand to do simple job of removing people from tech companies. what do they exactly do? Get millions to select whom to fire. Curious why tech companies themselves can't do cost cutting , restructuring themselves rather than wasting millions on external consultants and punishing employees who give blood and sweat to their companies. Really hate this . May be better to join consulting companies than to join tech companies. #intel #meta #paypal #google #walmart #amazon
Consulting companies have good benchmarking data for such cases. It’s cheaper to use them instead of 1) knowing what data is needed 2) buying all the data from different sources 3) a team working on the data 4) eliminate internal bias - this is a grey area. There are always biases introduced
Avoid consulting as a SWE. You will get paid like ass to do boring work for > 40 hours a week
I am ex MBB and can attempt to answer, having been on both sides of the fence. There are multiple reasons why you, as a business leader, might want to engage consultants using your budget. Listing out a few relevant ones below. 1) Consultants are able to cut through the noise of politics, which will be at a crescendo in this situation as every leader would want to protect their own empire at the expense of another’s. 2) Consultants do the cost analysis independently 3) Consultants bring together the industry-wide practices very quickly (in a matter of a week or two). In this context, it would mean the process, communication practices, benchmark T&Cs, etc. In short, senior execs are way too involved in the ‘run’ part of business and consultants provide them bandwidth, view on industry practices/ benchmarks, and ability to make the process smoother by cutting out politics (to an extent).
Bigtech doesnt hire Big3 for cost cutting via payroll cuts. Rest of the market does. Ive worked on both sides- cutting HC as an MBB consultant and now working in tech. Most of the new business coming in now for Big3 will be cost transformation but they are also likely to see new growth and strategy engagements slow down (very likely new engagements in pipeline will get delayed). Net net they wont benefit a lot, at least for now. Next year will be another story.
What about bottom feeders like Wipro Infosys TCS HCL
Firstly, let’s treat these companies with respect. They help us out a lot in tech implementation and BPO. Secondly, no, these firms are not hired by their clients for strategic advice.
These are IT consulting companies and not Strategic Business consulting.
I think it also reduces the company's risk of being sued(and losing) when consultants are involved.
The main reason is when the CxO got asked by the shareholders on accountability : 'because mckinsey say so'. If mckinsey screw up, the blame is on mckinsey rather than the CxO.
Consulting is about shielding management from hard decisions. There is always a market for that
Shopify did it themselves if I had to bet. Last major Amazon layoff was led internally. Elon did Twitter himself. Likely Mark too. Unsure on Snap. Other layoffs were too small to hire an MBB team. Happy to be corrected by someone with deeper knowledge.i mean would you trust MBB to help you frame the decision on 50% of your R&D costs going to AI that generates 0 revenues, informed based on layoff use cases from large banks or blue chip tech like ibm?
My experience.. consulting firms don’t get hired during this time. They only get hired for other short term projects but not for restructuring.
Layoffs and restructuring is boutique work. The theory is, Stripe and Meta share the same boutique consultant for their layoffs comms, the wording is close to identical. McKinsey definitely has global partners who specialise in this type of edge case boutique work. That's kind of McKinsey's thing. You pay through the nose, and you get an A minus service. It's helpful if you're an Arab dictator and you've got absolutely zero personal network. Anyone with an actual personal network will get a referral to a boutique. Big Tech will take pride in the fact they don't use McKinsey. McKinsey is where you go to learn what not to do in your first 2 years after college. The dirty secret is only the screwup companies hire McKinsey.
Very very from the truth