Consultancy companies

[dockingtrade]

i saw an article in the sbpost about a fairly significant financial institution hiring a major international consultany company to figure put where to cut costs. Now id assume there financial company has accountants, economist, tax consultants managers etc. Why would the need to outsource this task. Surely they can carry out this themselves instead of paying huge fees for someone to tell them what they probably already know? Or am I missing something?

 

[mathepac]

The work of rationalising / downsizing / redesigning / cost reducing large organisations is often undertaken by external consultants as, in theoy at least, they have no vested interest in the outcome. They didn't work in the organisation in the past and won't work there in the future.

The people you mention, "accountants, economist, tax consultants managers etc" IME are generally amongst the least well qualified to run a programme of change management, business transformation and organisation design. Some of their skills and input will be required during the project, but only as contributors, not as project managers.

The skills required can be found in places like for example, Sheppard-Moscow [broken link removed] (no connection, just an example)