Many firms are reaping the rewards of the use of consultants, according to Statista.com, as annual revenue growth of the management consulting services industry is $1.321 billion and 9.1% annual revenue growth is the average of management consultancies worldwide from 2015-2021. Though the industry is growing and consultants are in demand, there are potential drawbacks for companies.
This is part 2 of a series on hiring consultants for projects, special launches, or workforce optimization, where we examine the disadvantages. Read part 1 here.
The advantages, as we have said, can include cost savings and exposing your organization to new expertise and perspective. Many firms are reaping the rewards of the use of consultants, according to Statista.com, as annual revenue growth of the management consulting services industry is $1.321 billion and 9.1% annual revenue growth is the average of management consultancies worldwide from 2015-2021. Though the industry is growing and consultants are in demand, there are potential drawbacks for companies.
Availability is likely limited, says Thommie Burger, a business expert on LinkedIn. The same traits making a consultant attractive to your firm will lure others. That may mean highly skilled experts are not there on an urgent basis when you need them to be. “They might not be able to abide by your requirements immediately,” he notes, which may not be ideal.
Cost. Hiring consultants comes with financial risks, warns Payal Sondhi at Indeed.com, which makes things even riskier if a project is running on a low budget. Guarantees are not necessarily part of the deal. “A consultant should be hired only if you are sure they will help multiply the productivity/profits,” she says.
You still need someone to perform the work. This requires an experienced contractor or employee, points out Cathy Habas at BizFluent.com. Consultants are merely guides, making recommendations, but many consultants draw a firm line between guiding and implementing, she says. Burger, of LinkedIn, agrees. “A consultant only gives you a strategy; they do not execute it,” he says, “which means you will still need an internal team in place to implement the same at all hours.”
