8 Reasons Companies Hire Consultants
Let’s look at the hard numbers---the U.S. government spent $16.9 billion on consultants between 2019-2020.
The global management consulting market was expected to grow from $892 billion in 2021 to $973 billion in 2022.
If you’re wondering how the global management consulting market relates to your goal of launching or growing your own independent, boutique consulting business, here’s the answer—the more organizations hire consultants to help them solve challenges, the more it becomes standard practice, and the more potential opportunities for your business.
Here’s another one…
Data analysis firm Statista reported that by 2027, 50.9% of the U.S. workforce will be freelancing. A more conservative prediction points to more than forty percent of the U.S. workforce becoming contingency, freelance, or consulting members of the workforce.
When you consider the impact artificial intelligence is projected to have on many occupations, that prediction doesn’t seem too farfetched.
Why companies hire consultants
To understand the trends, it’s helpful to understand some of the reasons organizations hire consultants. They hire consultants because:
- The expertise they need isn’t always available internally.
- Employees are already strapped for time.
- Employees have insufficient experience to understand the full scope of the challenge and implement the solutions.
- They are seeking objective opinions and employees are sometimes too close to the problem to find a solution. In some instances, employees may be perpetuating the problems.
- It’s often faster and more efficient to hire a consultant.
- Experienced consultants can more precisely assess the problem and make suitable recommendations.
- A consultant can champion compliance or an organizational change with less pushback.
- Consultants bring varied experiences from other industries and organizations and their insight helps them recommend several options that can work for their client.
As a consultant, the primary reasons companies hire my firm are #1, #3, #4 and #7. Another reason not listed above is because we can train their team. Grant management training is one of our most requested services.
A consultant is an individual with extensive experience in a specific field who is paid by companies and organizations to help the company either identify and solve a problem, navigate an organizational change, implement a new initiative, or improve a business operation.
If you have extensive experience in your field, it’s time to make your independent consulting business a reality.
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