Many companies, but also outside observers, are interested in why someone hands over their own tasks to someone else to do them. Namely, the question they ask themselves is: “why don’t companies solve their problems on their own, with the help of their own workforce, whether it is about reducing costs or entering a new market. However, there are many reasons why companies really need consultants.  If you have ever considered becoming a consultant or hiring one, read what renowned consultant Alexandra Nuth told about reasons why companies most often hire external consultants.

Why companies hire external consultants?

Thinking outside the box

Without being required to work in a certain way or being related to the business culture and working methods of the company, consultants are able to think outside the box and focus on creative solutions.

They are able to provide revolutionary insights and strategic thinking as opposed to what the client could normally think of.

Independence

Unlike employees, who may be influenced by the company’s business and internal culture, consultants enter the business free of any imposed prospects. In other words, they bring in a new, independent perspective. Also, a successful consultant always approaches the task objectively and impartially.

Expertise

Expertise is one of the most logical and common reasons for hiring external consultants. Most often, their activities are limited to a very narrow area, which allows them detailed expertise and providing the maximum potential of new models and methods needed for the business of any sector or organization.

Credibility

It is not unusual for consultants to be hired during important changes or projects in companies. Sometimes organizations simply need reliable and professional people to monitor them. In an industry that does not require authorized status, reputation often serves as an assurance of quality and credibility, because consulting firms with known results have demonstrated expertise in a wide range of areas. They work with thousands of clients around the world every year to solve a variety of business problems and drive growth.

Hard decisions

Because of being objective, consultants can also be given the task of making difficult decisions. An example is reducing the number of staff that can have a detrimental effect on a team if managed internally. Consultants, on the other hand, can identify where to make cuts, with a sufficient amount of empathy, but also (mandatory) emotional distance.

Cost-effectiveness

The only costs for firms that engage external expertise for individual projects are fees to consultants. Apart from them, they generate neither overhead costs nor computer supply costs, and ultimately no workspace costs. In addition, once the project is completed, the consultants can be “retired”, which means that the organization no longer bears any costs. On the other hand, when hiring a permanent staff member, companies will have to pay a salary throughout the year, which can lead to a complicated redundancy process if it proves that person is unsuitable for a particular job.

Global scale

Some of the world’s largest consulting firms operate in more than 100 countries. Consultants from such firms have a reach in the global market and have the capacity to assist the business locally, regionally, or globally, while most large consulting firms have a wide network of clients in various geographical areas and business domains. This can be a major incentive for companies that are planning to expand business across borders or on different markets.

Undisturbed business

During a transformation project, employees may become overburdened and their primary activities and duties fall out of focus. There may also be a shortage of staff. By hiring external consultants to help lead transformation projects, companies ensure that their day-to-day operations are not disrupted by their staff, while external consultants can implement project-oriented changes.

Capacity

There are situations when a company realizes that it simply does not have an adequate fund of experts in the required areas. An example is the shortage of IT professionals at a time when the whole business is digitalizing. In this case, the company must hire a digital or technology consultant to help meet the urgent needs for rapid capacity building.

Best practices in the industry

The wide range of consultants ’experience will put them in a convenient position to have insight into best practices in a variety of industries. In this way, learning from the best in the industry, consultants can find ways to improve a client’s business, whether it’s expanding into markets, expanding product offerings, helping with the reorganization, or something else.

As you can see, consultants can really contribute to a company in many ways, and the wide range of their areas of interest and specialties is an indication that they can handle difficult situations, so being a consultant is not an easy task. However, it is an exciting one for sure!