How using an external provider can improve efficiency

There are a multitude of reasons why a business might turn to an external consultant, or indeed a team of consultants, to deal with a specific project, rather than looking for in-house expertise. In many cases there can be significant strategic or financial advantage in doing so. In 2010 the UK consultancy industry was worth £8 billion, employing in the region of 40,000 people, such is the demand for expert advice.  So how exactly can using an external provider help?

A Fresh Approach

External consultants bring an objective viewpoint to the problem at hand, one that is often not possible to see when using in-house employees, who may have a personal stake in the outcome. And while an outsider may not have a comprehensive understanding of company culture, this can be an advantage, preventing issues such as bias or blind-spots.

It’s not uncommon for major projects to become bogged down when there are many different departments or people pulling in the direction of their own interests. A fresh pair of eyes can add new impetus to get things moving again.

Unique Skillsets

Most consultants will focus on a specific discipline. For example www.mclarensoftware.com assists firms looking to implement new document management software by drawing up plans and training users, as well as the actual implementation. Then you also have huge consulting firms, such as McKinsey & Company, which employs hundreds of people and covers many areas. For example, you’ll have technological consultants and financial consultants working on internal auditing matters and marketing consultants helping businesses conceive new ways to reach their customers.

Many businesses will either not have an employee with the skills they require, or they have them but are not in a position to take them away from their current role. When hiring a consultant, it’s possible to cherry-pick someone with the exact skills required, from project management to litigation, for the exact length of time they’re needed.

Credibility

When a company employs a consultant with a strong track record, particularly in their own industry, they gain experience and knowledge, particularly useful when benchmarking performance. Along with this comes credibility, which can be vital to persuade internal stakeholders of the need to implement any changes the consultant considers necessary.

In addition to this, external consultants are often able to get a truer picture of what’s going on in an organisation. Many employees, when asked to give their opinion on, for example, internal business processes, or why a project has gone off the rails, may not feel inclined to be totally honest. There could be a perception that if they point out issues with management or colleagues they could be talking themselves out of a job. Using an external consultant, whilst not entirely eradicating this problem, can often mitigate it.

Cost

Whilst not always the case, it is often more cost-effective for businesses to hire an external consultant, than reassign their own employees. Some businesses will also place clauses in contracts so that, should a project need to be cancelled, or over-run on costs, a consultant’s services can be terminated easily and amicably on both sides, something which can prove difficult with a permanent employee.