Inefficiencies with Big Company Consulting Models

Recently, we highlighted the rise of boutique consulting firms, and how firms like Croixstone address inefficiencies inherent with traditional, big company consulting models.  Interestingly, Accounting Today published an article with data that shows that nearly 75% of Big Four consulting projects cost more that clients anticipated.

The data comes from a survey conducted by Source Global Research which found that U.S. companies generally expect to pay $2,000 – $5,000 per day for a management consultant.  That said, 70% of Big Four consulting projects end up costing more than the client’s initial estimate, while 18% of the projects cost significantly more.  Only 2% of Big Four consulting projects end up costing less than senior executives at client companies expected.

Read the article published by Accounting Today here (free registration may be required).

Automation, Big Data and the Future for Accountants

So what does the rise of intelligent machines mean for the future of accountants?  

Accounting Today recently endeavored to answer that question with help from two executives from Genpact, a global leader in digitally-powered business process management and services with experience in serving one-fifth of the Fortune Global 500.

Gianni Giacomelli (Chief Innovation Officer) and Prashant Shukla (Vice President, Marketing) of Genpact shared the following insights.

  • A large number of positions now handled by people, including accounting jobs, will be supplemented or replaced in some way by intelligent machines
  • The accounting industry is already seeing a displacement of jobs through outsourcing and robotic process automation
  • By diving into LinkedIn analytics, it is evident that numerous, expanded career paths may exist for accountants in roles traditionally unrelated to finance and accounting
  • One-third of 1,120 randomly selected people with “accountant” roles in their LinkedIn profile have held a role unrelated to finance and accounting
  • Customer service, operations, and sales and marketing were all well-represented in the LinkedIn research
  • Additionally, positions in research, program management, consulting and business analysis stood out

The bottom line?  

The Genpact executives believe that accountants offer skill sets that can help address a wide array of business challenges and the future offers expanded opportunities for these professionals in non-traditional finance and accounting roles.

Read the full article here.