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Sunday, May 21, 2006

Big IT Consulting Firms Announce Plans for Future

Recently four major players in the IT consulting market made some statements about the future of their businesses. PricewaterhouseCoopers recently stated it would not re-enter the IT consulting industry when its IT consulting non-compete agreement with IBM Global Services ends in September 2007.

Ernst & Young’s consulting arm will grow global revenues of an estimated two billion dollars per year by the year 2010.

KPMG’s non-compete agreement also ended recently and it has become less involved in consulting since that time. Finally, Deloitte and Touche never left the IT consulting market even though the company thought seriously about that option a few years ago.

Many analysts have speculated whether any of these companies will become entrenched in the IT consulting field along with Deloitte, a company that has established many alliances with IT firms and encountered no public profile or regulations related to potential conflicts of interest.

Cath Hardaker, a consulting partner at PKF noted that the three firms besides Deloitte have no reason not to re-enter the IT consulting field. Deloitte maintains many successful relationships with major IT companies including BEA, Cognos, EMC, HP, Hyperion, IBM, Microsoft and many others. Hardaker speculates that the reasons are not legal that are keeping companies out of IT consulting; the issue is more likely a question of readiness. Because there is a gray area between management consulting and IT implementation, firms would have a difficult time without proper planning and resources to define boundaries that would help them earn real money.

Deloitte representative Keith Stone stated that other firms would have a problem with entry barriers because of a very competitive IT consulting market.

Added By: Computer Consulting 101 Professional Kit