Professional services firms are under pressure. Are we seeing the impact of AI? Or is it some combination of whiplash and a flat economy? What does AI mean for the legacy business model?
Especially the points on 'Whiplash' and 'Flat economy in the developed West'. The latter will certainly play a part as companies scrutinise those annual rate hikes from their consulting suppliers.
4 thoughts.
- We hear about the cuts, but not the context around them or where hiring happens. E.g., Firms may also be hiring more contractors/niche boutiques. Or upskilling/ transferring more talent. Which we don't hear about.
- Big SW companies have a) built up their own consulting teams, and b) have numerous partnerships (with all the big firms, plus many small ones). I remember how hard it was in PwC to make the partnership with one of the big Indian SIs fruitful. It requires a lot of effort and 'selling' internally. On both sides. Which isn't often appreciated where it needs to be.
- Generational shift. People who joined Consulting between 2008-2010 as grads are now venturing out as their own boutiques. Adding to the swell of boutiques, freelancers and in-house Tx teams that grew from the previous generation.
- Productivity. I am currently in a dubious mind as to what this really means and entails for most companies. For so long productivity has just meant 'production', a hollow shell of the original definition which was to be able to produce something of value. "We mistake motion for progress".
These are great points especially about productivity. We tend to focus on a micro level for this measure. As well as losing sight of value, this makes productivity seem like a matter for individuals when it should be about the value teams or organisation produce
Thanks for the insightful article Kenny!
Especially the points on 'Whiplash' and 'Flat economy in the developed West'. The latter will certainly play a part as companies scrutinise those annual rate hikes from their consulting suppliers.
4 thoughts.
- We hear about the cuts, but not the context around them or where hiring happens. E.g., Firms may also be hiring more contractors/niche boutiques. Or upskilling/ transferring more talent. Which we don't hear about.
- Big SW companies have a) built up their own consulting teams, and b) have numerous partnerships (with all the big firms, plus many small ones). I remember how hard it was in PwC to make the partnership with one of the big Indian SIs fruitful. It requires a lot of effort and 'selling' internally. On both sides. Which isn't often appreciated where it needs to be.
- Generational shift. People who joined Consulting between 2008-2010 as grads are now venturing out as their own boutiques. Adding to the swell of boutiques, freelancers and in-house Tx teams that grew from the previous generation.
- Productivity. I am currently in a dubious mind as to what this really means and entails for most companies. For so long productivity has just meant 'production', a hollow shell of the original definition which was to be able to produce something of value. "We mistake motion for progress".
These are great points especially about productivity. We tend to focus on a micro level for this measure. As well as losing sight of value, this makes productivity seem like a matter for individuals when it should be about the value teams or organisation produce