Where is the consulting industry going in 2022?

Key Takeaways

Early stages in consulting of shifting from analogue to Digital model is the first look at where is consulting industry going in 2022? AI tools that help consultants analyze bid data to produce effective results. How consulting would help in a sustainable growth? What are the key components of consulting in 2022?

Transcript

Hello and welcome back to Smart Consulting Sourcing, the only podcast about consulting procurement.

I am Hélène, and today we will be talking about Consulting industry in 2022. However, before that, let me give a recap of last week’s podcast.

Check the fit between the consultant’s skillset and the kind of expertise you need to solve your problem.

Don’t forget to check at least two references for each consulting firm in the last round before making your final decision Look at the Grey areas that you are still unsure about the proposal and their consulting services.

Always ask the 4R’s of references from the potential consultants to ensure that the short-listed firms have the expertise they claim to have: the reference must be real, recent, relevant, and related.

And of course, You can leverage the service of a third-party provider like Consulting Quest to check the reference for your consulting project.

Listen to the complete podcast about checking references.

However, this week, I want to discuss where is the consulting industry headed in 2022?

Management consultancies are still grappling with how to deal with digital technologies and emerging business models. The trend for consultancies in 2022 will be to build comprehensive digital strategies and remodel existing business and operational models in a way that keeps the C-level connected to stakeholders.

A number of industries have been compelled to adopt new ways of working as a result of the pandemic. Even the consulting industry, which is predominantly client-driven, has had to adjust to new service, structure, technology, and operation methods.

Early industrial transformation (IX) adopters are already realizing value from enhanced efficiency, resilience, and agility as they work through supply chain, decarbonization, and cybersecurity concerns. In 2022, advanced capabilities in industrial processes will become even more critical.

Based on my experience in this industry and how quickly some organizations move, I believe we’ll see experimental approaches from two years ago become an integral part of daily operations this year.

Artificial intelligence and automated tools are being used to disrupt the digital world.

Expect increasing digitization and a digital response to the growing need to alter operations, structure, and terms of service more swiftly to meet customer expectations. While management consulting remains a labor-intensive business service, other industries have already embraced digital transformation.

Looker, Tableau, Microsoft Power BI, Qlik, SAS, and Domo are some of the tools that assist consultants in processing and analyzing enormous amounts of data. In terms of sales, customers, operations, and supply chains, for example, they help save time and deliver more accurate results.

In the near future, artificial intelligence (AI) will play a significant role in automating administrative consultancy labor, allowing teams to focus on higher-value-add and customer-facing duties.

Future consultants would provide employees, customers, and partners with tools for developing and employing AI safely, accurately, and ethically. This change would then assist clients in identifying new opportunities and developing business strategies.

Consultants are expected to assist organizations in overcoming complicated challenges by utilizing disruptive technology.

A New era of Internal Consultants is also emerging

Internal consultants can use their knowledge and experience much more quickly because they only work with one customer in a particular industry.

Due to the high cost of specialized resources, there is an increasing trend to internalize the consulting role. The fees charged by the main corporations have risen dramatically. With the need to decrease operating costs increasing, CEOs must find new ways to get consulting help at a lesser cost.

They compensate for their inability to make external comparisons by developing a stronger bond with the company, its operations, and its culture. Working with internal teams might also be the ideal option to ensure information security for specific projects that demand a high level of confidentiality.

How is remote working enabling a skill-driven paradigm in the consulting industry?

The shift to remote working has allowed businesses to tap into previously unreachable pools of specialized expertise due to geographic constraints.

Traditional consulting models are anticipated to move to on-demand consulting services, and consultants will be expected to deliver projects using a hybrid approach, which involves staffing a project with personnel from various locations based on capabilities and availability.

Digital networks can be utilized to manage consulting assignments and communicate with teams located all over the world. This would lead to new types of resourcing and offshore, as well as an increase in demand for advanced and professional corporate consulting services.

Let’s have a look at how 2022 has changed the thoughts of macro consulting to dwell into micro consulting?

The management consulting sector is continuing to move toward a multi-sourcing model, with clients preferring not to rely on just one firm. Companies break down major projects into smaller chunks and develop partnerships with a variety of companies, including specialty firms and smaller consultancies.

Large generalist organizations partnering with tiny specialized specialists, management consulting firms collaborating with consultants from outside the industry, and consultancies collaborating with academics, digital agencies, and technology companies are all examples of multi-sourcing.

As a result of multi-sourcing, there is more rivalry among consultants.

But let’s not overlook sustainability

Environmental sustainability has become a global issue, with environmental, social, and governance (ESG) challenges ranking among the top five corporate risks across industries and functions.

If businesses want to improve their social image, they must become more environmentally conscious and comply with new legislation. Governments and the general public demand businesses to be more environmentally conscious. All of this raises the demand for consultants to assist businesses in becoming more socially and environmentally responsible.

Moving on, it’s also important to discuss the rise of splinternet, which is a fascinating concept.

Splinternet is a concept that refers to the Internet splintering and dividing due to a multitude of factors such as technology, commerce, politics, nationalism, religion, and competing for national interests. As a result, there is a greater need for consulting in this area.

In Conclusion,

In 2022, the focus will be on digitization. Artificial intelligence (AI) has the ability to handle, process, and analyze large amounts of data in real-time. By combining the domain expertise of small and medium-sized firms with cutting-edge technology and producing quantifiable results, consultancies could provide greater value to their clients.

The ripple effects of using internal teams, task-based outsourcing, and leveraging partnership arrangements are expected to change the service delivery paradigm of consultancies. One of the primary focal areas that will assist the sector to adapt to the ever-changing consulting business is ESG consulting.

And last but not the least, I cordially invite you to be present at Consulting Quest’s next webinar, which discusses the nuances of managing a consulting project as a client. Know what? If you want to achieve top ROI from your consulting project, you must manage it like a consulting pro.

Do join me in this session to know about steps and techniques that no PMP can tell you.  Whether you’re looking to hire consultants soon or later,  this knowledge will always come in handy in taking control of your consulting project and steering it towards the desired outcome.

The webinar is on the 5th of April 2022 at 5 pm CET, all you guys have to do is go on my Linkedin profile in the Highlight section and register yourself! Hope to see you there.

And that marks the end of our podcast, folks. Next week, I want to talk about Supplier relationship management for consulting. So, stay tuned.

Till then, stay safe and happy sourcing!

If you have other questions about the future of consulting, remember you can contact me directly on LinkedIn or by email because I am always game for a chat!

Bye and see you next week! Au revoir!

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