What are the reasons for the decline of the consulting industry?

The decline of the consulting industry is by no means unexplained, much less inexplicable.

Summarized here are roughly the following three reasons:

First, the number of consulting companies and practitioners as well as the number and size of blowout growth, price wars represented by the fierce competition within the industry, a high degree of involution, so that the consulting market is deteriorating day by day, more and more difficult to do.

It is believed that many senior practitioners, especially those in pre-sales positions, have experienced this very y. Because of the golden age of consulting business of high profits, consulting consultant income superiority, so that all walks of life of enterprises or individuals have to change the transition to squeeze into the consulting industry. I know peers, in addition to computer-related professions, management-related professions, there are chemical engineering, medical professionals, mechanical professionals, and even liberal arts graduates. A few like-minded senior consultants, you can partner to set up a small consulting firm, and then participate in the competition to take orders to do the project. Some universities have even opened consulting consultant majors, large-scale batch training consultants; many training institutions are also constantly fast-food to train a large number of consultants.

Consulting firms are everywhere, consultants are everywhere, and the project opportunities are only so many cake is so big, said the competition between consulting firms is close to white-hot, you and I live and die posture, is not too much.

Second, whether domestic or foreign, the head of each industry, key enterprises, the size of the enterprise, can be on the system have been on the project opportunity to shrink dramatically, the situation exacerbated by the situation of more meat less industry involution.

Third, as Chinese enterprises continue to participate in the internationalization, and continue to learn from foreign advanced management experience, the internal management level of enterprises is getting higher and higher. For enterprise information technology construction, the degree of asymmetry between the first party enterprises and consulting firms for the system and the implementation of the project's cognition is getting lower and lower. Party A enterprises have more industry within the implementation of the system can be used as a reference to peer enterprises, which peer enterprises to implement the system has been successful, the enterprise has gained development; which peer enterprises to implement the system failed, the level of enterprise management and efficiency have declined; these peer enterprises are asked to consulting firms to help implement the system, and so on, the Party A enterprises can easily get first-hand information. In addition, many party A enterprises in charge of IT itself is a consultant origin. These enterprises in charge of IT they have a deeper knowledge of the consulting industry, consulting industry within a variety of bright rules, subterfuge, a variety of routes, they know. That is to say, in the face of party A customers, consulting companies need to make every effort to spend more effort to get recognition and access to project opportunities, price war is inevitable!