The use of management consulting firms has grown significantly in the past couple of decades. At first they were mainly used to trim the waste from large corporations so they could run more efficient operations. This had many cost savings advantages even with the high price of these firms.
The next evolution of the management consulting firms evolved into doing the dirty work the management of a company either did not have the heart to or just did not want to bother with. This was the downsizing of personnel to reduce costs in the lean economic times the world faced. These firms could make judgment calls on the staff without any prejudice to friendship or loyalty because they were outsiders with no emotional attachment to anyone they were giving a pink slip to.
This opened the door for many of the unemployed to advertise their services from years of experience on the open market as consultants in their area of expertise. They now hire out their services to the highest bidder. The main advantage of using these firms is they are responsible for their own business expenses and benefits. This helps to keep businesses operating costs at a minimum.
Because of all the downsizing that occurred, many companies are now very shorthanded. This has opened the door to many of the management consulting experts that are now available. They are now being used as temporary staffing to help fill in the gaps many companies face in the business world. Best of all when the contract is up there are no severance payments. The contracts are just not renewed and no more financial expenditures are needed.
The movement to the use of management consulting firms is the wave of the future to help a company control spirally costs of healthcare benefits. Whether this is a good move or not is determined on how well the advice and work of these temporary employees’ turns out to be. This can be advantageous for a business to use this as a resource. The best advantage is when they do not work out, there is little to no paperwork involved in removing them from your business.