Market Overview: Business Transformation Consultancies

Business transformations consist of fundamental changes in business systems, processes, roles and culture. They are linked to — but distinct from — IT transformations, in that they focus on achieving a business objective, not a technology goal. These projects are highly complex, and most companies lack the capacity and skills to execute all aspects on their own. In recent years, the requirements for business transformations have only increased: Companies are shifting their focus away from cost reduction toward innovation and improved customer experience, a result of new age-of-the-customer requirements. To fill their own competency gaps, companies rely on consultants. Consultancies can be grouped into five categories based on their strengths and weaknesses in different phases of transformation. CIOs need to understand how these strengths and weaknesses apply to their own organizations, before making a sourcing decision.