Virtually all of the IT consulting heavy hitters ,such as IBM, Accenture, Capgemini, and CSC, rely on their sizable technology outsourcing practices to buoy their revenue growth, especially when revenues in their consulting practices lag.
Not only do many consulting firms win billions of dollars doing this type of work, they also can take advantage of the ample cross-selling opportunities to expand their consulting businesses. Firms such as IBM, EDS (now owned by HP), and CSC are among the largest providers of IT and business process outsourcing services.
Not only has the expansion of the BPO market meant more competition among consulting fi rms, it also has indirectly launched a diff erent type of opportunity for strategic consulting firms such as McKinsey, Bain, and BCG.
Although firms in this category do not act as third-party providers of business processes, they might advise companies on issues related to BPO. For example, they might help a client company think about how to select vendors, how to negotiate pricing, and how to manage relationships with third-party providers.
Regardless of the specifi c process that clients outsource, the strategy behind outsourcing is usually similar. As such, pureplay strategy consultancies have capitalized on their own revenue-generating opportunity by off ering frameworks for addressing their clients’ BPO strategies.
INSIDER SCOOP
“It’s a lot easier to sell consulting services to a client if you’ve already gotten your foot in the door with outsourcing work.”
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