Disadvantages
-
The internal consultant
may not bring the objectivity to the consulting relationship that an external firm can.
-
An internal consultant
also may not bring to the table best practices from
other corporations. A way to mitigate this issue is to recruit experience into the group and/or proactively
provide diverse training to internal consultants.
-
Where the consulting
industry is strong and consulting compensation high, it can be difficult to recruit
candidates.
-
It is often difficult to
accurately measure the true costs and benefits of an internal consulting group.
-
When financial times get
tough, internal consulting groups that have not effectively demonstrated economic value (costs vs.
benefits) are likely to face size reductions or reassignment.
Governmental
Spending on Consulting - United Kingdom
From 1997 to 2006, Labour
governments have spent £20 billion for management consultants and at least another £50 billion for IT
systems, up significantly from the £500 million a year spent by the previous Conservative
government.[2] From 2003–2006 spending on consultants has risen by a third, from £2.1 billion in
2003–04 to £2.8 billion in 2005–06, largely due to increases in spending by the National Health
Service. In the past three years £7.2 billion has been spent on consultancy services from large
consultancy firms.[3]
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