How Gigged.AI Can Address Consulting Firm Challenges in 2024

Technology consulting firms in 2024 are navigating a complex landscape shaped by a variety of challenges highlighted in a recent Forbes article which include talent shortages, inflation, cyber attacks and geopolitical issues that test their adaptability and efficiency. Here’s an overview of some of how these challenges are impacting consulting firms and how Gigged.AI can help address them:

Reduced Bench Sizes and Evolving Hiring Practices

The shift towards leaner operations has made maintaining a balance between available talent and project demands more critical than ever. Firms are streamlining work processes and cutting down on unnecessary expenses, necessitating a more strategic approach to talent acquisition and management. As consultancy firms adapt to these changes, they must also develop expertise around talent recruitment and hiring to attract better talent and yield better long-term business outcomes​​.

Gigged.AI’s Internal Talent Marketplace is a potential solution by managing consulting benches with a skills-based approach. This methodology enables firms to optimise the efficiency of their bench, ensuring that the right talent is deployed on the right projects at the right time. By effectively matching consultants’ skills with project requirements, firms can minimise downtime and enhance productivity, directly addressing the challenge of reduced bench sizes. The technology can be deployed in less than a week with ROI in 4 weeks.

Longer Sales Cycles and Increased Competition

The sales process, from initial contact through to contract signing, has become more protracted, reflecting clients’ desires for more thorough due diligence and the best possible value. This is compounded by heightened competition from an array of new entrants to the market, including boutique firms, specialist consultancies, and independent contractors, all vying for a piece of the pie. This increased competition not only extends the sales cycle but also places pressure on firms to distinguish themselves through unique value propositions and specialised expertise​​​​.

More Competitive Requests for Proposals (RFPs)

RFPs have become more competitive, with clients expecting not just technical competency but also insights into how consulting projects can drive broader business value. This includes a greater focus on digital transformation, where clients look for consultants who can not only implement new technologies but also align them with business strategies to achieve measurable outcomes. The rise of purpose-driven consultancies and the emphasis on corporate responsibility further complicate the RFP landscape, as clients seek partners who not only deliver on the bottom line but also contribute positively to societal goals​​.

Partnering with Gigged.AI’s Account Executives early in the sales process can significantly enhance a firm’s ability to win more RFPs. Gigged.AI’s Open Talent Platform, with its 20,000 strong community of niche tech talent—including architects, AI experts, data scientists, and software developers—provides firms with access to a vast pool of specialised skills. This not only strengthens the firm’s proposition in competitive RFPs but also ensures rapid project initiation and delivery, addressing the challenges of longer sales cycles and competitive RFP landscapes. We helped a major US consulting firm win a 7 figure deal by partnering at the RFP stage.

Decreased Margins

The consulting industry is experiencing a squeeze on profit margins, driven by clients demanding more value at lower costs. An article by Consultancy.uk stated that “corporate buyers of professional services have become more demanding, pushing back against concepts such as billable hours, and requiring fixed fees and with greater transparency on costs.” This has forced consulting firms to reassess their pricing models and look for ways to deliver high-quality services more efficiently. Additionally, the rise of digital platforms and tools has enabled clients to take on tasks that were traditionally outsourced to consultants, further eroding margins. Firms are now challenged to demonstrate their unique value and justify their fees in an environment where cost pressures are constant and the ROI of consulting services is scrutinised​​.

Niche Expertise 

Digital transformation and the need for niche expertise are reshaping the consulting industry. A Deloitte report released in February 2024 stated that “digital transformation is critical, and 74 percent of business leaders think it is the single most important investment now and in the future that organisations can make to drive enterprise value”. Firms are expected to be at the forefront of digital technologies, leveraging AI, data analytics, and other digital tools to enhance their service offerings. This requires not just technical skills but also the ability to integrate these technologies into strategic business solutions. Additionally, the demand for specialised knowledge in areas such as cybersecurity, cloud integration, and data analytics is growing, with clients looking for consultants who can offer deep expertise in specific domains​​.

Gigged.AI’s outcome-based Statement of Work (SOW) model presents a strategic avenue for consulting firms to engage niche tech talent and generate revenue swiftly. This approach aligns project payment with the achievement of specific outcomes, thereby ensuring that client engagements are value-driven and results-oriented. This model can help consulting firms navigate the challenge of decreased margins by facilitating quicker turnaround times for projects and aligning costs more directly with the value delivered.

Conclusion

In response to these challenges, consulting firms must stay agile, continuously innovate their service offerings, invest in talent development, and embrace digital transformation to remain competitive. By leveraging Gigged.AI’s innovative talent management and delivery platforms, firms can not only navigate these challenges more effectively but also carve out a competitive edge.