Technology consulting firms help businesses keep up with the new and exciting innovations that drive growth. Technology consultants work with clients to form a digital strategy that will help them achieve their business objectives. More specifically, tech consulting can help increase productivity and business growth, reduce costs, maximize process effectiveness and tech opportunities, and eventually, increase profitability.
What do technology consulting firms provide?
The tech industry changes constantly. Technology consulting services specialize in targeting specific problems that a company's personnel don't have the skills, time, or resources to tackle. By going outside the company to address problems or obtain services, business leaders allow their employees to focus on doing their jobs well.
In addition, outside consultants provide a new perspective based on their experience supporting best practices in a variety of projects. That fresh perspective often helps organizations increase growth and improve overall efficiency.
When do I need a consulting company?
Companies hire an IT consultant when they face a problem or situation that is beyond their in-house capabilities. The company's leaders decide it would be more efficient to hire outside help, or that it's the only solution. When it comes to single projects, businesses find it much more cost-effective to bring in a short-term problem solver than to hire a new long-term employee.
A consultant company also will give a business a second opinion, a technical audit, advisory services, or a plan for restructuring and staging a digital transformation.
How to choose a technology consulting firm
The first step is to figure out exactly what your company needs. This guides a company not only in selecting a firm, but also throughout the entire process. In the seach for a consulting company, there are several crucial factors to consider. Don't hire a technology consulting firm unless it provides these things:
1. An exact match between their expertise and your needs
Tech consulting companies provide a wide range of services, including IT strategy, IT architecture, IT implementation, enterprise resource planning services, systems integration, data analytics, IT security, and software management. Choose a technology consulting firm that not only advertises specific services that meet your organization's needs, but also has a portfolio of projects providing quality technology services and business solutions to satisfied clients in your industry.
What if a consulting firm specialized in something that's only similar to what you need? Keep looking. Unless your needs are so unique that no firm has done exactly what you want, choose a firm that has done exactly what you need and done it well. It's important to ask if the tech consulting firm has the same personnel who performed the exemplary work they tout. What if there is a big price difference between an IT consultant who has done the same work for the same type of company and an IT consultant who has done the same work for a similar company – or similar work the same type of company, or some variation of that? In that case, it would be worth covering this ground in-depth with that consultant's references and with that consultant.
2. A good fit for your budget
Technology consulting firms offer a wide range of pricing based on their industry expertise, reputation, location, and size. One of the country's consulting industry leaders, like the Boston Consulting Group or McKinsey & Company, probably could cover any need or contingency. They won't, however, meet everyone's budget. Smaller business consultants will offer more affordable pricing. However, without the expertise of well-established consultants, your ROI might actually end up being lower.
The smallest consulting firms typically specialize in one specific area, like UX or mobile app development. Project costs range from $10,000 to $15,000 and hourly consulting rates go from about $75 to $175. The top technology consulting firms typically work with government agencies and Fortune 500 companies. Project prices for these global services range from $500,000 to $100 million or $250 to $850 an hour. In the United States, average hourly fees for tech consulting services are $150 to $250 an hour.
Consulting firms also have different methods of pricing. Fee structures can be hourly, daily, monthly, project-based, or value-based.
3. Samples of its work, case studies, and credentials
Top consulting firms and even smaller firms should be able to show a portfolio of their solutions for previous clients as well as case studies. Not only does this establish credibility, but it also gives a broader sense of the firm's capabilities when it comes to addressing the specific needs of a given business. Potential clients should ask if it belongs to any professional organizations and whether its personnel have credentials like Project Management Professionals (PMP), IT Information Library Foundations Certification (ITIL), or Certified Information Systems Security Professional (CISSP).
4. A clear timeline for contract implementation
The maximum commitment for a contract is typically 12 months from start to finish. It depends, however, on the scope of work expected from the consultant and the type or size of the project. A good consultant will provide a solution, plus communicate ways for the company to effectively maintain it. This can be accomplished, in part or entirely, in the form of documentation. Clients should make sure that the contract and fees cover this.
5. Clear and accurate communication
During the initial getting-to-know you phase, evaluate the communication style and skills of the firm or consultant. An individual consultant or a firm's representatives should be able to tell you what they're going to do, who is going to do it (and ask how they choose their team), and when it will be finished. Be clear in your contract exactly how you will stay in contact throughout the entire process. You don't want to be billed for needless calls, meetings or reports. Likewise, you don't want to be left in the dark or hit with surprises. Look at references and online reviews for indicators that a consulting company is strong or weak in their communication with clients.
When you're dealing with contracts, the more you can get in writing, the better. Contracts should cover details such as costs, hours, milestones, deliverables, deadlines, and who pays for outside expenses. If code writing is involved, ask who will get ownership of design and intellectual property. If you retain the rights to the system or coding, know how it works.
No one wants a consultant coming back time after costly time to provide maintenance or damage control after the contract ends. The contract should include follow-up contingencies and the cost-adjustments and pricing for that.
6. Metrics of success
Good technology consultants should be able to communicate how you can measure the success of their solutions. Since their services often involve some kind of digital solution or digital engineering, there's a good chance you can use quantifiable data to judge its efficacy. Your organization may already have advanced analytics in place that can be used as part of that measuring process.
7. A defined implementation strategy
Consultants sometimes present impressive-looking solutions backed up with numerous charts and statistics. However, when they are in-house and getting down to work, clients don't see any practical, actionable steps being accomplished.
In addition, clients can be reluctant to bring up this discrepancy because they don’t want to appear to lack understanding. When choosing a firm, be clear about your expectations for practical solutions with actionable steps.
8. A strategy for addressing mishaps
In the world of information technology consulting, meeting deadlines on a consistent basis is important for building credibility with clients. And missing a single deadline on a critical project can destroy all that trust in an instant. But sometimes unforeseeable problems arise. And, as we noted earlier, things change quickly in the information technology world. If a consulting firm discovers mid-project that it will miss a critical deadline, go over budget, or is heading in the wrong direction, how will it address the situation? Will they adjust their pricing? Can the contract be terminated if the consultant's end is not upheld?
These are all great questions to ask a prospective consulting firm while screening your options. You also should ask if the consulting firm has any sort of disaster recovery plan if something goes wrong, like a critical security breach or loss of data.
9. Follow-up support
Some projects are not really over when it seems that way. If a new system is installed or a new strategy is implemented, a client might want continued support from the consultant. Perhaps bugs will need to be worked out, or additional training will be required. And not everything works out as expected. Ask the consulting firm how they plan to provide predictable follow-up support and how it will address unexpected follow-up needs. if it becomes necessary. A solution is only as valuable as its practical implementation and longevity.
Making the Decision
SDV International is one consulting firm that has a proven record of finding digital solutions for companies and government agencies. SDV International's experts focus on helping clients achieve higher levels of performance by using state-of-the-art technologies and methodologies.