Where We Are in The Consulting World and Where Are We Going
Fellow entrepreneurs, the world is changing — fast. For most of the owners of consulting firms out there, the answer to when your firm needs to change as well is probably ” long ago.”
The consulting market has shifted underneath you as you’ve been wrangling projects and seeking invoices. The irony is not lost here — counseling clients on strategy when there’s no time to think about it for your business.
But this is also natural. Running a great firm is consuming. Serving clients, managing team, and handling all the admin work leaves very little time to think big picture. The good news is…solutions exist!
Today’s Consulting Landscape
The global management consulting industry will be worth ~$400 billion in 2025. Such growth continues despite the economic uncertainties and reflects how vital consultants are in helping businesses navigate complexity.
There are three layers of the ecosystem:
At the highest level, the “MBB” firms — McKinsey, Bain, and Boston Consulting Group — sell top-tier strategic advice to Fortune 500 clients.
The mid-tier includes the Big Four (Deloitte, PwC, EY, and KPMG), which has moved beyond accounting into technology and operations consulting.
By far the most numerous, though, are the boutique specialists. So, it’s no surprise that 75% of consulting firms have fewer than five employees. These are specialized practices that marry domain expertise with our culture of agility and personal service.
This dynamic presents a straightforward challenge for the owners of small and mid-sized firms: you’re never going to compete with the giants on breadth, but you can do well via deep expertise in specific markets where your experience matters most.
Forces Reshaping Consulting
Here are several trends that are reshaping the practice of consulting:
1. AI Changes Everything
AI is fundamentally changing the consulting business. Top firms have begun harnessing AI’s potential to generate insights, decode complex data, and generate client deliverables—all in ways never dreamed of years ago.
“Consultants do in hours what used to take weeks,” writes one industry expert. This is not simply efficiency—it is even picking up in analysis.
Progressive companies are using machine learning to identify trends in large datasets and quickly experiment with many strategic scenarios. These tools don’t eliminate consultants—they enhance human capabilities, enabling them to tackle harder, high-margin problems.
2. Remote Work Becomes Strategic
In recent times, remote consulting has meteorically risen from a pandemic necessity to a competitive advantage. Modern collaboration tools also allow consultants to work with clients located all over the world without them having to hop on a plane every day, thus democratizing client access to their expertise.
This provides benefits for all involved. Clients get expertise without boundaries, consultants get reduced burnout , and service offerings are expanded. As a small company owner said, “I now review insights on my phone between meetings. We’ve increased 40% because I can work with clients instead of filling out forms or waiting in airports.”
3. Specialists Win
The generalist consultant is a dying breed. Today’s boutique firms that stand out target specific industries or functions where they have developed true mastery. This specialization allows smaller firms to compete effectively by providing more profound expertise in narrow areas.
Specialists can charge higher rates in healthcare compliance, sustainability strategy, or digital marketing because they solve complex problems that generalists cannot efficiently address.
4. ESG Moves Mainstream
ESG—Environmental, Social , and Governance Consulting—has swung from a niche to a necessity. Firms today question how to earn more revenue and how to do it in an environmentally friendly and ethical manner.
There’s a strong demand for firms that assist clients with ESG regulations and sustainability practices and communicate their impacts.
The Road Ahead
Moving forward, several forces will help reflect consulting’s evolution:
1. Technology Integration
Successful consulting firms embed technology into their core offerings—they don’t just recommend solutions; they powerfully implement them. As Digital Transformation remains a top client priority, the line between tech companies and management consultancies continues to blur.
For firm owners, this means developing deeper technical capabilities or partnering with technology specialists. It also entails employing contemporary tools within your operations to achieve maximum effectiveness.
2. The Human Element Is More Important Than Ever
Even though technology has and will continue to change & disrupt facets of consulting, , this is a fundamentally human business. Clients want consultants who have equal doses of technical skill and emotional intelligence—who know not just data but organizations and human effects.
“This is the age where AI has democratized information, so the data itself isn’t valuable, but the inference is,” says one industry leader. “Where information is useless—insight comes in.”
3. Flexible Models Emerge
Tomorrow’s consulting companies will be built on much more flexible business models. They will keep core teams but bring in networks of independent experts as needed for specific assignments.
It opens opportunities for collaboration for small firm owners. Forming a character-forming consortium with complementary boutique firms enables you to take on bigger projects without compromising on the specialist skills and personal attention that set you apart from larger competitors. If a client needs expertise across three niches – and you only know one – relationships with other firms will allow you to still win that engagement.
What This Means For You
So today, if you are at the head of a consulting firm, you should prioritize the following:
Leverage advanced technologies: Consider how AI tools can augment your services to enable more capabilities and differentiate your firm. Emphasize how these technologies further compound your unique value.
Go deep instead of wide: Determine what you do best and market there. Don’t try to be everything to every client.
Lay technology foundations: Develop in-house technology expertise or partnerships to assist clients in managing technological change.
Build adjustable capacity: Before you take on more significant projects, build networks of trusted collaborators to fill in beside your core team as needed, helping you execute larger projects without permanent overhead.
The future will be won by consultants who combine genuine expertise with technological sophistication. Leveraging these tools will yield different insights and allow you to provide more substantial recommendations.
After all, you became a consultant to solve complex problems, and the evolution of the industry is providing you with some exceptionally powerful tools to accomplish that mission.
About System Six
System Six streamlines financial operations for consulting firms using technology and our finance expertise, enabling owners to concentrate on serving clients rather than dealing with back-office work. With a well-seasoned team of 40+ professionals with 10+ years of accounting experience focused on 175+ businesses across the country, we give you time back through handling your bookkeeping, payroll, bill pay, invoicing and other diverse finance needs. Learn more at www.systemsix.com
