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Trends in IT Consulting: Everyone in the Pool

October 24th, 2011 by admin Leave a reply »

Perhaps the most influential trend to shape the competitive IT consulting market landscape has been the entry of computer software and hardware producers into the consulting business. Experts suggest that the seeds of this trend were planted in the 1990s.

As IT consulting revenue skyrocketed, software manufacturing companies watched their profit margins shrink as global competition intensified and their products became commoditized. Consulting offered a way to advise on technology as well as sell it.

IBM has led the pack in this. It has successfully leveraged its brand recognition and technical know-how to become the world’s largest provider of IT services, thanks in part to its 2002 acquisition of PricewaterhouseCoopers’ consulting arm.

HP is another major player; its 2008 acquisition of EDS, a large IT consulting firm founded by former presidential candidate Ross Perot, made it the secondlargest IT and business services provider. Adding consulting services to their off erings gives hardware and software firms the opportunity to build stable repeat revenue on top of their manufacturing bases.

Insiders warn newcomers to investigate consulting opportunities at hardware and software firms carefully—not all are created equal. Some firms might just be using services as a way to sell more products, and their advice inevitably includes buying more of their products, creating unnecessary costs for the clients they’re supposed to be helping.

Major players, such as IBM and HP, carefully manage their engagements to preclude this conflict of interest and prevent clients from feeling cheated. Carefully question prospective employers about their practices regarding recommending technologies to clients. Recruiters should have straightforward answers.