COVID-19's is having a profound effect on Management Consulting. The increase in efficiencies is forcing Consultants to work remotely from multiple locations, allowing them greater flexibility and availability. COVID-19 has removed much of the overhead that a consultant would carry around with them when working for a firm – travel costs, accommodation costs, time wasted travelling etc – now all this can be done from anywhere in the world via high speed communication networks.
The cost savings that accompany reduced travel costs are being compounded by increased the efficiency of management consulting firms who now have access to a larger pool of consultants on-demand. By reducing their overheads they can offer their services at lower prices whilst simultaneously maintaining quality by selecting from only the very best candidates. This creates an effective 'race to the top' where both clients and consultants compete for business based on quality rather than price alone, therefore benefiting everyone involved except competitors outside the industry.
The on-demand nature of management consulting is allowing one of the largest industries in the world to completely flatten. This is a major step in the commercialisation and globalisation of economies as consultants are now able to work for businesses based on merit rather than physical location
For too long businesses have been constrained by their own nationalities, jurisdictions and timezones preventing them from ever reaching a truly international scale. This has meant that many businesses 'externalise' instead of 'internationalising', this simply means hiring someone or something external such as a consultant to deal with issues at hand thus avoiding having to change business models entirely. COVID-19 will allow these firms to jump right into true internationalization without any need an intermediary.
In terms of the business world, this latest advance will help companies become more like social networks in that their tasks and clusters can be done by a greater amount of individuals across multiple jurisdictions. This model truly gives them access to the best candidates all over the world instantly and without any geographic constraints or limitations whilst still maintaining their high quality service levels at lower costs than before - a dream come true for profit maximization.
For consultants, this has created a new kind of market that allows them greater freedom and control over their business models. In addition, it will likely change how they work as many more independent consultants will emerge outside traditional firms who may need to re-build their systems to accommodate this new type of client base and so forth.
This state of affairs is great for everyone but not many businesses are fully ready for these changes just yet, but with time they should be able improve their services accordingly and continue profiting from all-time record profits in spite of COVID-19.
In closing it's important to note that although COVID-19 has been credited with creating a flatter world, it is too early to tell whether or not this will be the case. As always, adjust as required and never completely commit to any prediction in advance
