Impact of Coronavirus on the Consulting Industry: Navigating Changes and Opportunities
With the global outbreak of COVID-19 in 2020, the consulting industry, like many others, is facing significant challenges and opportunities. This unprecedented situation has brought about the need for a new perspective and has reshaped the way consulting services are delivered.
The Shocking Impact on Management Consultancies
As businesses and governments struggled with the financial and psychological impact of the pandemic, industries began to normalize business and commercial activities. Management consultancy firms were no exception and had to adapt to this new reality. The lockdowns have led to an increased demand for management consulting services as enterprises sought external assistance to reopen and mitigate the economic slowdown effects.
The Role of Management Consultants in Today's Crisis
Management consultants play a crucial role in navigating the challenges posed by the pandemic. They are well-versed in the latest government policies, rules, and initiatives, which can offer guidance on the necessary action courses. Business growth consultants can help companies develop various strategies for business growth, while organization growth consultants assist in forming better working practices, changing the work management, and developing policies that adapt to the current situation.
Experiences from a Technology Consultant's Perspective
Being a technology consultant for over 13 years, I have witnessed a profound shift in the consulting industry due to the onset of COVID-19. Here are some key lessons and observations from my experience:
Reduced Travel and Increased Remote Work
One major change is the significant reduction in travel. Even before the pandemic, my company began to focus on working remotely. Since the outbreak, I have not traveled at all. Companies like mine now believe that travel is not worth the risk and cost, and clients are in agreement. The increased reliance on digital tools such as Microsoft Teams, WebEx, and similar platforms has become a necessity. This shift is not entirely due to the pandemic but has been accelerated by the need for social distancing and remote work.
Transition to Cloud-Based Technologies
There has been a substantial transition from on-premises technology to cloud-based technologies. Clients are rapidly shifting to Office 365, Microsoft 365, and cloud-based management and remote access solutions. Popular cloud-based tools include ZScaler, VMware Workspace One, Intune, Citrix Workspace, and cloud-based virtual desktop infrastructure. This shift means that consultants are now busier with cloud-enablement tasks than with on-site consulting, resulting in less travel.
Slower Mergers and Divestitures
The current situation is marked by caution, leading to a slowdown in mergers and divestitures. Companies are taking a conservative approach, avoiding sudden moves in times of uncertainty. The future of such major business transactions remains uncertain.
Slowed Business Projects
Except for cloud-based initiatives, planned projects to improve on-site networks and employee productivity have been slowed or stopped. Companies are focusing on cloud-enablement and re-prioritizing projects due to the uncertainty of their financial situations. Many of these projects are linked to large-scale consulting contracts that have been paused or cancelled, leading to a temporary downturn in the consulting industry.
Conclusion
The impact of the COVID-19 pandemic on the consulting industry is far-reaching and multifaceted. While it has presented challenges, it has also opened up new opportunities for innovation and adaptation. Consulting firms that can leverage this period to enhance their digital capabilities and adapt to the new normal stand to benefit in the long run.