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Consultants

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Why is it that we will spend big money for consultants to come in and tell us what we already know.

Recently we finished a really in-depth evaluation of one particular aspect of our data archiving technology and came up with a well supported plan for improvement. We then submitted it to the directors for review.

The directors then hired a consulting firm to repeat the evaluation and come up with a proposal. The consultants came up with the exact same solution we did.

The consultants billed for us for $26,000.00. (This effectively doubled the cost of the final solution.)

The only reason I can think of for hiring consultants is that either:
1. You don't believe you have the expertise in-house. (Which means you didn't need to bother asking your IT teams opinion in the first place. And your IT team would probably tell you this if you ask.)
2. You don't trust IT team to be truthful or you don't have enough faith in them to listen to their suggestions. (In which case you should fire them all and hire a group you can trust.)

Don't get me wrong. These consulty folks were great to work with and the two weeks they spent here were certainly pleasant. I just don't see the value from a business point of view.

I actually worked for a brief time as a consultant for a medical systems vendor. I would like to think that I was worth what I charged. However, now I'm not so sure.

Maybe our administration just didn't like our proposal. But was it worth almost $30,000.00 to get a second opinion on a $30,000.00 solution?

What do you all think? Are consultants generally worth the money? I would like to hear from some of the IT consultants out there as well as in-house IT folks.

5 replies

by bfilmfan

I was a consultant for many years. As I specialized in Microsoft solutions (usually AD and Exchange migrations), I brought value as the in-house expertise didn't exist.

I have been brought in by a client in the past to "vet" a design, just as you would go to another doctor for a second opinion before having major surgery. If I increased the project costs by 100% and the project was completed successfully, then the client spent their money wisely.

I have worked with consultants in the past that did not have expertise or experience in products. Far too often, these were software support consultants working for the vendor who did not know their products as well as I and the in-house staff. Sadly, I've found this to be true about 50% of the time when dealing with vendors to include Microsoft and Novell.

My thoughts on the justification for brining in a consultant:

You don't have the experience.

You don't have the manpower to complete the project.

You want a second opinion of another industry veteran.

by matthew yurksaitis

Good Post & Good food for thought. From working on both sides of the house (in house IT & Outside consultant) one perspective is that maybe it is not so much as question of trust of one's internal IT staff as it may be one of independent verification and results. In today's environment where unfortuneately consumers and shareholders alike have become highly skeptical and suspicious of companies performing "in house assessments & investigations" companies now appear to be employing consulting firms as a measure of verification of results by an "independent firm". IT security also plays a part in this as many businesses may be striving to have thier IT environments evaluated and assessed by and independent third party to help achieve and maintain a level or degree of Information Assurance. The last aspect is usualy for companies with Government contracts, but is becoming more prevalent with regulatory compliance such as HIPAA, GLB, etc..

One other point to consider which may come into play here is Insurance for the company, today many insurance companies also require independent assessments of assets etc.. in order for better rates on insurance.

So maybe it is not so much not trusting your own IT staff, or that there is a lack of expertise in house (which still is a possibility of course). But more one of a business decision to address the skeptical consumer & shareholder concerns or some other regulatory or business facet that has not been readily discussed. - Just some thoughts.

by tony hopkinson

they are a high skilled, well educated, potentially liable and expensive resource whereas you are a mere employee.

Happened to me several times, this, one even paraphrased my original report. It's when you don't agree with the consulant, you can have real problems. That's happened to me too.

There are two reasons for getting a consultant in one is that you don't have the resource in house (or don't believe you have), the other is manager CYA. They'd rather spend an extra 30k that be left holding the can if it goes nipples up, blaming you after all won't work.

by stewarth1

I agree that had the consultant come up with a different solution, (espically one that they claimed was less expensive) I would have been in a tough position. That's why I keep my resume up to date.

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