Hey there, and welcome back to Smart Consulting Sourcing — the podcast that helps you get more bang for your consulting buck. I’m Helene, and every week we explore how to make smarter decisions when it comes to buying, managing, and optimizing consulting services.
Now, today’s episode is one I’ve been itching to talk about because… let’s be honest, it’s the kind of decision that gets made all the time — and yet, so often, it’s based on gut feeling, habit, or… well, inertia.
Yep. We’re talking about the classic question:
Should you make or should you buy?
And no — this isn’t about whether you should bake your own sourdough or order takeout tonight. This is about something way more strategic: deciding whether to handle a consulting project internally or bring in external experts to get the job done.
This is a dilemma that shows up in every industry. In manufacturing, it’s whether to build a part in-house or outsource it. In IT, it’s whether to develop a tool or license one. But in consulting, the question gets… trickier. Because now you’re not just buying a product — you’re buying thinking. Insight. Influence. Change.
And let’s be honest — that comes with a whole different level of complexity.
So, if you’ve ever wondered:
- Can my internal team pull this off?
- Are consultants really worth the price tag?
- When does it make sense to outsource — and when does it not?
You’re in the right place. Because we’re going to break it all down, step by step, with a super practical framework you can actually use to make better, faster, and more strategic decisions.
Let me explain first Why Make-or-Buy in Consulting is a Real Dilemma
Or to start with the beginning: why does this decision even matter?
I mean, can’t we just default to hiring the usual firm? Or hand it off to the internal strategy team and hope for the best?
Well… no. Not if you care about value. And not if you want your consulting spend to drive results — not just rack up invoices.
Here’s the thing: in consulting, the make-or-buy question isn’t just about cost.
It’s about capability, credibility, culture, and even confidentiality.
Let me give you a real-world example. A client of mine — let’s call them Company X — was gearing up for a major cost transformation initiative. Big stakes. Big visibility. Big pressure from the board.
Their first instinct? “Let’s just bring in a Tier-1 firm. We don’t want to mess this up.”
But after digging a little deeper, we realized something important.
They already had a talented internal team with deep operational knowledge. They just needed structure, some training, and a few external benchmarks to steer them in the right direction. So instead of fully outsourcing, we built a hybrid model: their internal team owned the delivery, while external consultants supported in a more focused, advisory role.
The result? They saved a ton on fees, their team gained valuable skills, and the initiative landed — on time, on budget, and with way more buy-in.
Now, that’s not to say you should always go in-house. In fact, in many cases, bringing in external consultants is the smartest — and fastest — way to create impact.
But the point is this: you’ve got to make that choice consciously.
Because if you don’t, you’re just reacting. And in the world of consulting, reactive decisions = expensive decisions.
So, what makes this decision so hard?
Well, let’s look at your two options.
Option 1: You “Make” — meaning you use your internal resources.
Sounds good on paper, right? You already know the company. You’ve got institutional knowledge. It’s “free” — at least in theory. And you get to build your team’s capability in the process.
But here’s the catch…
Internal teams often struggle to break the mold. They’re part of the system they’re trying to change. And that makes it really hard to challenge assumptions or push uncomfortable truths. Plus, let’s face it — when you’re juggling day jobs, it’s tough to give a transformation project the full focus it deserves.
Option 2: You “Buy” — meaning you bring in external consultants.
They’re fast. Focused. Unbiased. They can call out the elephant in the room. And they (usually) come with a toolkit and benchmarks that help you accelerate.
But — they don’t come cheap. And if you’re not careful, you can end up with flashy PowerPoints and very little real-world impact. Not to mention the risk of “consultant fatigue” — especially if they don’t truly get your business or your culture.
Oh — and let’s not forget the confidentiality factor. The truth is, consultants learn from every client engagement. And while that’s part of the value they bring… it’s also something to watch out for. Especially if your project touches on sensitive IP or strategic moves.
So yeah… it’s complicated.
And that’s why we need more than instinct here. We need structure. A way to look at this decision through a strategic lens, not just gut feel.
Which brings me to this: what if we stopped thinking of make-or-buy as a binary decision… and started treating it as a strategic capability?
Something you can build. Refine. And actually get better at over time.
That’s exactly what we’re going to unpack in the next segment: a five-pillar framework to help you build a smarter, more robust make-or-buy strategy.
Alright, so now that we’ve set the stage for why the make-or-buy question is more strategic than it seems… let’s talk about how to actually make that decision the smart way. Because no, flipping a coin is not a strategy. What you need is a solid, structured approach — and I like to think of it as a five-pillar framework. These five pillars are the foundation for smarter, more confident consulting sourcing decisions.
Let’s start with the first one: understanding your project. And I mean really understanding it. You’d be surprised how many companies jump straight into drafting RFPs or calling their usual consulting partner without clearly defining what the problem is. It’s like saying “we need a solution” before even agreeing on what the actual challenge is. That’s a fast track to wasted budget and misaligned outcomes.
So the very first thing you’ve got to ask yourself is — what are we actually trying to achieve here? Is the scope clear? Do we know what success looks like? And more importantly, is this something we’re outsourcing because we genuinely need the expertise… or because we just want someone to blame if it goes sideways?
Another question that often gets overlooked — is the market even ready? Some capabilities are hot and mature, with plenty of proven providers. Others? Not so much. So if you’re trying to buy something that the supplier market hasn’t quite figured out how to deliver yet, you’re in for a bumpy ride. And that’s why this first pillar is so essential. If you can’t clearly articulate your needs, and if you don’t know what the provider landscape looks like, then you’re just not ready to make the call. Period.
The second pillar is all about centralizing your consulting procurement. And yes, I know — centralization sounds bureaucratic and maybe even a little scary, especially if you’re in a decentralized organization. But here’s the thing: when it comes to consulting, centralization doesn’t mean red tape. It means clarity. It means control.
Too many organizations have consulting projects popping up like mushrooms after the rain — one business unit works with this firm, another calls up someone else “because they’ve used them before,” and nobody really knows who’s doing what or how much is being spent. It’s chaos.
But when you centralize, even just in terms of visibility and governance, you gain leverage. You can negotiate better rates, avoid duplication, align projects with broader strategic goals, and make sure that consulting is actually driving transformation — not just papering over problems. It’s the difference between steering the ship… and being dragged along behind it.
Now, let’s get into pillar three — assessing the externalizability of your project. And yes, I know “externalizability” is a mouthful, but stick with me.
Here’s what I mean: not every project can — or should — be handed off to external consultants. Some projects are clean-cut. You can define the deliverables, set clear timelines, and isolate the work enough that someone outside the company can realistically own it. Perfect candidates for externalization.
But then there are those messy, interwoven, deeply political projects. You know the ones. The kind of initiatives where progress depends on fifteen other teams playing nice, or where half the challenge is navigating internal resistance. Throwing consultants into that without a strong internal lead? That’s just setting them up to fail — and you with them.
So you have to be honest about whether the project is truly something an outsider can handle, or whether it’s so embedded in your internal workings that it needs to stay close to home. If it’s not externalizable, don’t try to force it. You’ll end up frustrated, over budget, and no closer to your goals.
Alright, now let’s talk about strategic value — pillar number four. Because not all projects are created equal.
Some projects are clearly strategic. They drive growth, reduce risk, unlock new capabilities — and in those cases, speed and quality are critical. But other projects… well, they’re more tactical. Or they only become strategic because they unlock something else down the line. That’s where the nuance comes in.
You’ve got to ask: what kind of impact are we expecting here? Are we moving the needle in a meaningful way, or are we just cleaning up messes? Is now the right time to do it? Are we doing this because it’s urgent… or just because it’s politically convenient? And if we do this project, will it build a skillset we need again in the future?
Understanding the strategic value of a project helps you prioritize. It helps you figure out whether you should move fast and bring in firepower, or whether you can take your time and build capability internally. And trust me — getting this wrong can have a huge ripple effect on your roadmap.
And finally, the fifth pillar: evaluating the value of externalizing.
Now this is where things get interesting. Because even if a project can be outsourced… the big question is: should it be?
Just because you can buy something doesn’t mean it’s the smart move. You have to look at the value that externalization will actually bring. Will bringing in consultants accelerate the outcome? Will they offer skills or benchmarks you don’t have in-house? Are you just buying validation for a decision you’ve already made?
Also — and this is critical — is the project something that touches on your core capabilities or sensitive information? If it does, you might want to think twice before handing it off. Because while consultants bring value, they also carry risk — and if the upside of going external isn’t clearly higher than keeping it in-house, you might be better off investing internally.
So there you have it — five pillars. Understand the project. Centralize your approach. Assess externalizability. Measure strategic value. And weigh the externalization benefits.
Now… you might be thinking, “Okay, but what if my project doesn’t fall neatly into one bucket or the other?” Great question. That brings us to one of my favorite strategies — the hybrid model.
Here’s the thing — the best answer isn’t always make or buy. Sometimes, it’s both.
A hybrid execution model can give you the best of both worlds. You might have your internal team lead the strategy while external consultants jump in to handle specific workstreams — like competitive analysis, benchmarking, or training.
I’ve seen this work incredibly well, especially when you’ve got strong internal talent but limited bandwidth, or when you want to upskill your team while still moving quickly. With the right setup, a hybrid model can save money, protect sensitive information, and build internal capability in the process.
And here’s the underrated bonus — hybrid models are amazing for knowledge transfer. Your people don’t just watch from the sidelines while consultants do the work. They’re in it. They’re learning. So next time a similar challenge comes up, they’re not starting from scratch — they’re better equipped. More confident. More capable.
That said — and this is important — hybrids only work when there’s clarity. You need to be crystal clear on who’s doing what, who’s leading, what the goals are, and how progress will be measured. Without that, you risk falling into the worst of both worlds — confusion, duplication, and consultants and internal teams stepping on each other’s toes.
So if you’re going to go hybrid — and in many cases, you should — make sure it’s intentional. Make sure it’s well-structured. And make sure everyone involved knows exactly where they fit in.
So now that we’ve walked through the five pillars of smarter make-or-buy decisions, the big question becomes… how do you actually put all this into action?
Well, the first step — and honestly, one that too many teams skip — is to educate your business lines. Because this isn’t just a procurement issue. Or a strategy department thing. Consulting touches everyone — HR, Finance, Operations, Transformation. If you want your make-or-buy strategy to stick, you’ve got to get everyone aligned on what it is, why it matters, and how it works.
The next step is pretty tactical — but absolutely essential. Inventory your projects. Literally list them out. Then map each one by its strategic value and its externalization value. Think of it like a two-by-two decision matrix. The results can be surprisingly eye-opening.
If a project scores high on both strategic importance and the value you’d get from outsourcing, that’s a green light. Bring in external experts and go. If it’s low on both fronts? Let’s be honest… maybe it’s not worth doing at all. And if it lands somewhere in the middle? That’s where you want to explore hybrid options — the sweet spot where you balance internal knowledge with external horsepower.
And finally — implement governance. I know, I know, governance doesn’t sound sexy. But without it, your framework’s just a theory. Whether you centralize decision-making or keep it distributed, someone has to own the process. Every make-or-buy decision should follow the same logic, the same lens, and ideally… roll up into a coherent view of how you’re investing in consulting across the business.
Now — before I let you go — let me hit you with one last thought.
Because here’s the provocative truth.
Most companies don’t actually have a make-or-buy strategy for consulting.
What they have… is a habit.
They call the same firm they’ve always used. They assign the project to the same internal team, just because they’re available. They confuse being comfortable with being effective. And little by little, that comfort zone starts to suck the energy out of transformation.
And that’s how big ideas stall.
That’s how initiatives that should move the needle end up sitting on the shelf — or worse, draining resources without creating value.
So here’s my challenge to you. Don’t settle for habit. Build a strategy. Ask the tough questions. Use the framework. And treat consulting not as a budget line… but as a strategic lever that you can deploy — with purpose.
Because this isn’t just about saving money. It’s about building momentum. It’s about moving faster, smarter, and more confidently toward the future you actually want.
And hey — if you’re not sure where to start? If you want help building your own make-or-buy strategy, my team and I are always game for a chat. Just drop me a note at helene@consultingquest.com. I’d love to hear what you’re working on.
Alright, that’s it for this episode of Smart Consulting Sourcing. If you enjoyed it, share it with a colleague, leave a review, or just hit subscribe so you never miss an episode.
Thanks so much for listening.
Bye… and au revoir.
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