Governments, businesses, and non profit organizations recruit consultants for various reasons. Each project in the consulting sector bounces from a customer's need for assistance which is not solved by internal management. For example, some companies require to revamp their IT infrastructure.
However, they are unaware of the most recent backend systems, and have insufficient staff to handle such a big project. Also companies, after merging, cannot handle staffing as they do not have any prior experience. In such a case, there is a need for an unbiased party to intervene. Some clients also seek advice to terminate their plant.
Sometimes, consultants are recruited due to political reasons. It is difficult to launch big projects, mainly at Fortune 500 companies. For spending a single dollar, the permission of a senior executive is required. Without attaching any consultancy brand name to the project, it is difficult to get an approval. As the consultancy company takes over the project, everyone is assured that the project will succeed.
Even though a large project has been given the green light, there is no guarantee that it will be implemented. The only reason for this is the inertia of the bureaucracy. Senior executives are generally not too interested in the project. In short, companies lose their focus.
Companies hire consultants to monitor huge projects and ensure that the project is under the microscope every time. In most cases, even if the right solution is quite evident, it should be proposed by an external party. Consultants are often hired in this era of downsizing.
When the consultants suggest a reduction in the staff, the company may fire employees at will. For consulting outsourcing and IT field, consultants are like cost-effective workers. They assist the company in hiring employees for a project without expending more money.
Usually, consultants perform a job at a fast rate as they are better performers. Consultants are recruited to perform in the company's place. Consultants may be hired for any reason, they are bound by their performance. In most cases, consultants are very costly on an average.