In the year 2020, the Business Advisory Services industry could be experiencing different organizational and technological developments. Some of these phenomena, such as keeping up with emerging technologies’ speed, influence other sectors. However, consultancy still has some of its specific problems.
As most Business Advisory Services in India and abroad start to face more competitive match from new entrants entering the market (e.g., freelancers, crowdsourcing), demand for higher levels of expertise at lower, criteria-based rates would further pressure them.
As such, in order to properly face these challenges, it is becoming increasingly common for professional services to collaborate. This blog discusses these emerging trends in consultancy and Business Advisory Services trends in greater detail, including their suspected causes and anticipated results.
Expert Rita McGrath, a business school professor, claims that Business Consultancy Company/firms face an underlying threat: as it has done in so many sectors before it, the pattern of ‘on-demand’ demands infiltrates the industry. Simply put, consumers demand ever-faster technical solutions to their business challenges, threatening conventional consultancies that currently do not match the abilities of freelancers and crowdsourcing to fulfill these customer requirements.
However, not all hope is lost; these struggling Business Consultancy Company/firms will be able to satisfactorily satisfy customers needing such fast service and trained expertise with a versatile and technology-focused approach, McGrath says.
According to the Harvard Business Review, which analyzed the rising trend of professional services experts leaving existing consultancies to become independent consultants, the desire for these ‘on-demand’ experts is so strong that some experienced consultants also leave their employers to start their own companies.
Surveys show that these independent advisors will, in reality, be happier than their typically working counterparts, making it easier to give the consumer the customization they want with their increased versatility. However, though Beroe notes that, in the future, the freelance sector will inevitably present considerable competition for more extensive Business Advisory Services in India and abroad, the list of challenges does not stop there. Indeed, even the democratization of searching for information can be considered a hazard, as everyone can now gather data with the simple power of searching on the Internet.
It is not a new idea that consumers expect consultants to be highly trained and up-to-date with the latest technologies. However, the exponential speed at which technology is developing in the 21st century can leave even the most dedicated of consultants at a loss. Consultants find themselves frustrated by the possibility of learning all the complexities of the new versions, with most technology firms launching software upgrades every few months.
Some larger Business Advisory Services Firms are now acquiring high-tech start-ups in an effort to meet the mammoth demand for such endless technology knowledge; mergers and acquisitions of digital agencies, for instance, are increasingly becoming popular among leading consultancies.
However, even emerging technology such as Artificial Intelligence and Machine Learning does not assess the degree of consultants’ anticipated expertise. Clients often need a rich understanding of the regulatory environment, and therefore expect consultants in various legal matters to be up-to-the-minute experts. As such, according to Deltek, advisory companies’ consultants now find themselves burdened by the unceasing need to be aware of the new legislation and regulations.
No independent consultant may possibly be an expert in all fields of business. Therefore, as consumers continue to demand the utmost in both scope and depth of experience, larger Business Advisory Services Firms and abroad have found themselves collaborating to better support themselves against the mounting pressure with other businesses, cutting-edge tech start-ups, or independent consultants. Occasionally, in order to meet their business objectives, consumers themselves may either propose cooperation or “multi-source” differing service providers.
This increasing number of collaborations and partnerships is confirmed by TRC Corporate Consulting’s overview of modern consulting, which identifies a wide range of services, providing more adaptable and personalized offerings to clients in place of strict, pre-packaged services.
Customers have begun to seek more value-based outcomes from advisory companies in recent years. Beroe’s consulting industry market report confirms this, with consultants expected to deliver ever-higher value despite no rise in billing amounts.
Worryingly, in a survey of 700 executives, Deltek noticed that the trending demand for higher-value has actually placed overall profitability at risk, with some clients also leaving Business Advisory Services Firms who engage more traditionally (as expressly reported by ALM Intelligence). Independent consultants may, after all, are best suited to meet the demands of consumers who want more personalized and observable value indicators.
Non-traditional pricing and billing models are also growing in demand, in addition to the aforementioned value-based performance metrics. Where conventional advisory companies have pricing and billing that may have been paid annually or upon completion of the project, some customers are now demanding custom billing plans that allow them to measure their return on investment more tangibly. For instance, payment requirements for ‘milestones reached’ enable the customer to derive production value directly from the number of money spent.
In order to meet budget limitations, clients often pursue financial accountability, requiring costs upfront, and frequently request reductions in either price or delivery time. Many clients participate in ‘comparison shopping’ in the light of these different conditions to ensure that their business consultancy company is adequately receptive to any cost issues that might arise. This only helps to lift the pressure on Business Advisory Services Firms who are already overburdened.
The business advisory services’ sector is clearly not resistant to the developments and disruptors impacting other sectors. As such, many advisors have to respond to the headwinds of consumer sensitivities in terms of pricing, scheduling, and technical skills.
After all, adaptability could be the only choice for business advisory services in such a dynamic business climate if they want to survive and succeed. This is attempted by numerous consultancies, working with several clients, revising billing models, and offering the flexibility that their customers are increasingly demanding. The year 2020 brought many challenges for Business Advisory Services Firms. Still, for those who aspire to make ever-increasing improvements and versatility of the standard, it has undeniably been a time of transformation.