Firms See Strategic Benefit from Outsourcing
Although ITO and BPO work is lower margin and considered separate from consulting, it gives firms recurring revenues and a hedge against cyclical projects, especially during economic downturns. In addition, outsourcing seems to be growing in strategic importance for many consultancies. Some are reporting that satisfied outsourcing clients are increasingly looking for higher-value consulting and other services when the need arises.
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Booz Re-Enters Pure-Play Strategy Space
Booz Allen Hamilton’s launch and recent sale of Booz & Company, along with A.T. Kearney’s MBO in early 2006, recreates a vintage 1970s-style strategy consulting marketplace. Three decades ago, strategy was dominated by five major firms – McKinsey, Bain, The Boston Consulting Group, Booz Allen Hamilton, and ATK. As with much of consulting, what is old is new again.
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Firm Focuses on Client Empowerment
Consultancies consistently report that clients demand greater transfer of knowledge to their internal teams during engagements. Clients are less interested in having strategies devised and implemented for them; many now want to play an integral role in solution design/execution, thereby gaining the skills needed to continuously improve.
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