Adapting to Market Needs: How Consultancies are Investing in Talent and Partner Ecosystems

Consultancies that invest heavily in talent — including structure and skills training, in addition to managing an expansive partner ecosystem — will be better equipped to deliver on market needs. Refreshing portfolios and business line structures enables consultancies to more efficiently provide advisory services around business functions, operations and technology needs.

Consultancies’ Current Focus: AI, Partnerships and Talent

Management Consulting Outlook

While macroeconomic uncertainty remains across markets, the consultancies look to develop core services such as around AI, partnerships and networks of physical centers to strengthen client engagements and continue advisory discussions. Increasing technology complexity, operational cost-driven optimizations and data strategies will draw on consultancies’ core experience to successfully drive digital transformation programs.

 
Maintaining client trust will be paramount moving through 2024 as vendors keep a close eye on branding and market positioning.
 
TBR Principal Analyst Patrick M. Heffernan, TBR Principal Analyst Bozhidar Hristov and TBR Senior Analyst Kelly Lesiczka delve into emerging tech trends for 2025 and their predictions for IT services vendor leadership — Click the image to watch the full video now 

 

Management Consulting Key Trends

Technology continues to threaten the nature of consulting engagements, requiring consultancies to showcase value and deliver on outcomes. Greater investment in talent frameworks, structures and skills will equip staff to lead client discussion and effectively leverage technology to assist workflows.

 

Partnerships remain a core piece of the technology integration, bringing in new expertise and go-to-market opportunities that enable consultancies to meet a wider variety of client needs. Client retention remains a priority across consultancies but will require the firms to effectively deliver value through services.

New CEOS Among the Big Four Will Execute on a Shift in Go-to-market Strategies to Remain Key Contenders

With both EY and PwC getting new CEOs effective July 2024, we expect to see these firms recalibrating their go-to-market strategies to adapt to a tech-dominated era.

 

Judging by Deloitte’s internal restructuring efforts, we expect Deloitte to follow a similar pattern, likely going deeper with a select few clients and executing through leaner organizations enabled by optimized partner-enabled portfolio offerings. Deloitte has a leg up against its Big Four peers in the implementation and operate phases, but that may not last long as these rivals turn to service delivery partners for scale and get closer with key tech powerhouses.

 

Over the next few years, PwC will return to its unified tax, assurance and advisory branding and showcase its value to clients, leaning on its strong reputation to differentiate from peers. The firm’s ability to evolve its consulting offerings by infusing technology assets that have been developed internally as well as acquired through alliances enables PwC to not only guide its clients’ application of AI but also enhance processes and leverage data from across its own business.

 

The next two years will challenge KPMG’s leaders to execute on the promise of transformation during the next wave of macroeconomic pressures, talent management battles and technology revolutions. At the same time, KPMG’s leaders recognize that their priorities are transforming the firm’s go-to-market approach, unlocking the power of the firm’s people, reimagining ways of working, and innovating capabilities and service enhancements.

 

Success in executing these priorities, in TBR’s view, will come as KPMG shifts from building a foundation to scaling alongside the growing needs of its clients and as the era of GenAI presents yet another opportunity and challenge. Striking the right balance between elevating the potential of GenAI as a value creator and accounting for commercial and pricing model implications will test the durability of KPMG’s engagement and delivery frameworks.

Technology Consulting and Operations Consulting Lead Revenue Growth as Consultancies Execute on Cost and AI Needs

Technology consulting led revenue growth among the four tracked service lines as consultancies supported clients’ application of digital workplace services, generative AI (GenAI) and cloud solutions to improve business and drive additional value. As consultancies grow their numbers of technology-specialized advisory talent, the firms will be better positioned to generate revenue in the segment.

 

Operations consulting trailed technology consulting in terms of growth, as clients continued to prioritize cost initiatives and operational efficiency. GenAI is impacting the operations consulting market landscape, as consultancies leverage the technology to deploy large language models and knowledge management tools, which address client needs in a less traditional way.