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Are Consultants a Waste of Money?

September 3, 2024

Are Consultants a Waste of Money?

Having been in business sales for over 15 years, I’ve witnessed the rise of smartphones, apps, the cloud, and continuous innovations in software and AI that have revolutionized the business world. Unfortunately, I’ve also seen companies fall victim to catastrophic hacks or suffer from a lack of vision, knowledge, and investment in technology—factors that have led to the permanent closure of otherwise great businesses.

The technology consulting landscape, particularly in the upper mid-market space, is often misunderstood. Large consulting firms usually target enterprise-level clients, where their extensive resources and premium pricing align with complex, multi-platform projects. These firms often leverage their brand and diverse expertise to command high fees, frequently subcontracting smaller companies for execution.

Mid-market companies face unique challenges. Leadership understands the importance of strategic technology investment to drive growth, yet hiring a CTO or CIO is often not feasible due to the cost and limited utilization, which may not align with the company’s business objectives. This creates a significant demand for specialized consulting services. To fill this gap, specialized consulting firms provide high-level strategy and leadership to mid-market companies, offering a flexible, cost-effective alternative that delivers expertise tailored to the specific needs of this market segment, without the overhead of larger consultancies.

This is where Technology Advisory Professionals Inc. fits perfectly.

When discussing the idea of hiring an outside technology consultant with decision-makers, I often hear that they already have an internal IT team or an MSP handling their tech strategy and needs. This response is common both within and outside the IT department.

The questions I often ask back are:

“What does your internal team or MSP do for your business?”

“What is their specific value to your company?”

“What do you feel is missing?”

These questions shift the conversation to exploring the value of a technology consultant and how they can be integrated to align with the company’s business values and vision.

Specialized Expertise

Internal teams often wear multiple hats and are expected to be experts in all things IT, which is unrealistic. Consultants bring specialized expertise as needed, providing valuable insights on emerging technologies (such as AI) or complex projects.

Objective Perspective

Internal teams can sometimes be hindered by internal politics, lack of skillsets, or fear of failure. A technology consultant offers an unbiased view of IT systems and processes, potentially identifying inefficiencies or opportunities that internal teams might overlook.

Temporary Resource Augmentation

For large projects or busy periods, consultants can provide additional manpower without the need to hire full-time employees.

Cost-Effectiveness

For specialized tasks or short-term needs, hiring a consultant can be more cost-effective than training overburdened internal staff or hiring new full-time employees.

Best Practices and Industry Insights

Consultants work with multiple clients and bring knowledge of industry best practices and trends to your organization.

Change Management

External consultants can help facilitate major changes or implementations, offering neutral perspectives and expertise.

Training and Knowledge Transfer

Consultants can train your internal team on new technologies or methodologies, enhancing their skills.

Fresh Ideas

Bringing in outside perspectives can spark innovation and create new approaches to problem-solving.

Compliance and Security Expertise

In areas like cybersecurity or regulatory compliance, consultants provide up-to-date expertise crucial for risk management.

Strategic Planning

IT consultants can assist with long-term technology planning and aligning IT strategy with business goals.

While an internal IT team is essential for day-to-day operations and ongoing support, consultants can complement their work by filling specific gaps or providing specialized services. The decision to hire a consultant should be based on your organization’s specific needs, goals, and resources.

Comments or insights are always welcome, as the pursuit of knowledge is a never-ending journey.

Article by: Dave Lang, September 3, 2024

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