Network-Based Consulting Firms: An alternative to the traditional firm model
The business model of management consulting has remained largely unchanged for more than a century since the founding of the modern profession. However, as the consulting market reaches maturity, market forces are reshaping the very idea of the firm. Buyers of consulting services are becoming more sophisticated in their sourcing practices to ensure they get greater value from their consulting spend. On the supply side, the advent of the dot com economy has made more and more consultants take the freelancing route to get more flexibility and autonomy in their work lives. The happy convergence of these factors has led to the creation of network-based consulting firms which is redefining the very way value is being delivered.
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