Waterstone Consulting News & Events

Choosing Consultants: Decisions, Decisions

By Mary Ryan Garcia
Choosing the right IT consultant involves more than simply checking the Yellow Pages for a likely firm. To find out how clients handle the decision-making process when choosing an IT consultant, Des Plaines, Ill.-based Waterstone Consulting interviewed a sampling of mid-market and Fortune 500 executives from a variety of industries.

The firm studied their key selection criteria and expectations concerning consultants. It also asked about the perceived advantages and disadvantages of choosing a Big Five versus a niche consulting firm.

When choosing an IT consultant, clients rely on criteria such as experience in a given technology or system. "The number-one capability clients look for is technical expertise," reports Waterstone president Rick Podgorski.

Other significant factors include responsive, timely service; professionalism; strength of reputation; and the ability to handle systems development and integration for complex areas of a business. "We feel very strongly that the ultimate differentiator is service level, not product or service offering," Podgorski explains.

The survey found that Big Five firms are typically stronger than smaller firms in their breadth of knowledge and are perceived to have clout with certain software vendors.

On the down side, large firms tend to be more costly than small firms. The study found that niche firms are perceived as focusing more on client relationships, providing a better value-to-cost ratio for clients.

Overall, respondents indicated that consultants don't always have enough business knowledge beyond sheer technical expertise. "What's lacking are consultants with deep process knowledge, who can understand the business needs--and the resulting organizational implications--behind the technology implementation," says Podgorski.

He notices growth in client expenditures for solutions that drive real business change, such as improved functionality and enhanced operational efficiencies. For example, during the past couple of years, companies have turned to ERP implementations in an effort to realize such benefits. "Now, the demand is to extend that ERP investment into an advanced solution that helps the organization go beyond its four walls," says Podgorski.