Traditional business models continue shifting for management consultancies

This week TBR publishes its semiannual Management Consulting Benchmark, and Senior Analyst Elitsa Bakalova notes the following: “Vendors compete for holistic transformation opportunities and expand the breadth of their portfolios and resources to provide clients with offerings that augment consulting value propositions by integrating consulting with IP-based solutions and managed services. As consulting teams continue to diversify, combining consultants with data scientists, designers and solution architects, vendors’ strategies around human resource management will prove increasingly vital to long-term success. Recruitment will need to be paired with employee engagement initiatives, corporate social responsibility tactics and performance management systems that attract and retain top employees.”

Additional assessments publishing this week from our analyst teams

“DXC Technology’s leadership, headed by the company’s new CEO Mike Salvino, is actively pursuing strategic alternatives for three of DXC’s businesses: U.S., state and local health and human services; business process services; and workplace and mobility. TBR believes DXC’s decision to spin off these businesses will provide the vendor with much-needed capital to continue to scale out its digital healthcare portfolio, particularly as it comes under increasing competition from digitally fluent vendors including Allscripts and Cerner in core markets, such as electronic health records (EHR).” — Kevin Collupy, Analyst

“As Deloitte morphs its value proposition toward an ‘as a Services’ firm, bundling proprietary IP in service contracts helps it drive profitable growth. At the same time, attaining and retaining IT trained staff can prove difficult for a legacy consulting firm, compelling Deloitte to explore new ways to increase retention.” – Boz Hristov, Senior Analyst

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