A recent report has revealed that one fifth of the UK’s annual £10 billion management consulting spend now goes to independent consultants – and that they’re set to the shape the future of the industry.
Independent consultants are often very experienced professionals, who are weary of the bureaucracy seen in traditional consulting firms. They’ve made the decision to strike out solo and take control of their contacts and contracts.
A recent survey of 250 company executives based in the UK, Germany, Switzerland, and the Netherlands, to find out how the growth in independent management consultants is affecting the industry.
The results showed that 40 per cent of companies now use an even split of traditional consulting firms and independent consultants. And, with the work delivered by these freelancers worth £2 billion, the survey revealed four key reasons why companies are going with them over big firms.
Nearly half those surveyed said that flexibility is the biggest selling point that independents, like EF, have over their larger rivals.
This is because traditional consulting firms often struggle to give their clients the freedom needed to thrive in today’s fast-paced business world.
Companies look for new, innovative approaches to keep up with younger, agile competitors. This is a great fit for Essential Finance, as companies look to tap into their skills when needed – without worrying about offering lucrative long-term contracts.
With organisations looking to scale back on costs due to heightened competition, over a third of executives said that price was a vital motivator when choosing an independent consultant.
Organisations said that they often see higher quality work from independent consultants.
More people are leaving employers to go it alone (there are now 4.8 million freelancers in the UK). In the case of independent management consultants, many have cut their teeth at the top firms and then decided to strike out on their own.
At Essential Finance we pride ourselves on the competitive advantage from growing our experience in industry rather than at management consultancies or accounting practices. So we actually have knowledge of how businesses work from within rather as a bystander.
The fourth reason why clients choose Essential Finance is the speed and ease with which independent consultants can take up contracts.
Because independent consultants are responsible for themselves, they need to work quickly and find contracts to make sure they get paid.
Clients often rely on wide-reaching networks and personal recommendations to find independent consultants, but matching platforms also provide increasingly easy access to top-quality people.
As organisations face regulatory challenges – and with Brexit getting ever closer – the work of consultants will continue to be valued.
And if independent consultants can carry on finding (and providing) the edge over larger rivals, their future will be bright.
