Consulting is a service business. And because it’s a service business, it doesn’t quite receive the same amount of admiration or recognition as a product business would. Today’s startups are focused on creating the next big thing and as such, services is not something you immediately think of, when you hear someone is starting out on his own in this industry.
However, IT consulting, while not appreciated enough, does face its own set of challenges and problems.
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1. Generating new business
Sure, getting new customers is important in the product world. But it’s even more significant for an IT services company. Considering the fact that IT consulting firms primarily work on a contract basis, it’s always important for them to focus on gaining new clients. A contract isn’t permanent. Because of this, while working with one or more clients, efforts are always being put into finding new ones, which can become quite a nerve-wracking effort. The biggest trap consultants get into is getting too comfortable with existing projects and the current client base.
2. Retaining great talent
IT consulting is a highly competitive business. As such, the talent environment is highly competitive as well. Traditional incentives like promotions and salary are not proving as effective as they once were. Today’s employees require a workplace that challenges them and more involvement in choosing what projects they’re assigned to, as well as technology-related decisions within these projects.
3. Innovation
Every IT consulting firm is getting on the innovation bandwagon. But very few of them are actually doing anything really innovative. Building a reputation of being innovative takes more than just making tall claims. Firms need to display what makes them tick, how they work and their ideas on leadership, technology and company culture.
4. Networking
Marketing professionals know just how important networking is. Developing mutually beneficial relationships with other entities in your industry can be the best way to improve your reputation
in the software world. Additionally, it can help bring in new clients by the way of referrals.
5. Catering to new skillsets
Sometimes, when a new project comes in, it can require an entirely different set of skills from what the consulting firm currently possesses. Training usually fixes issues related to this but at times, you may have to hire new employees solely for the purpose of catering to the requirements of a new project. It can be difficult for firms to make the right decisions when it comes to hiring in a crisis and it’s important to not lose focus of the long term goal of the company when this happens.
6. Language barriers
Being a consulting firm in India, we face the issue of being perceived as people who cannot speak English fluently. This is a huge misconception and one that consulting firms have to deal with all the time. I know, for a fact, how important it is for the client to be able to communicate efficiently with a consulting firm and it’s understandable to have fears related to this.
However, fears like this are usually unfounded and I’d say it may be time to step out of one’s comfort zone if only to explore the possibilities of what foreign consulting firms have to offer.
7. What if the timing’s not right?
Cold calls, or more precisely, cold emails, are the worst. And yet, I can tell you that the people drafting them are more often than not, quite sincere. They may have a great proposition, good
referrals and even genuinely believe that they can offer something of value to a certain client.
And yet, the client is not responding. The truth is, the client just may not be ready to accept these services yet. They probably have other issues to deal with that are unrelated to what is being offered. The timing is just not right.
8. Relinquishing control
Consulting is not so much control as it is about influence. An IT consulting firm performs a service for the client. It does not control the client’s way of operations. This distinction is often difficult to maintain and can get in the way of a working relationship between the firm and its client.
Well that’s all for now. Do let me know what other challenges you face as a consulting firm or what problems you have faced, as a client, while working with one.
