Some say, consulting services are increasingly becoming (or have long become) a commodity. Clients are bargaining and forcing lower daily rates, to the point where the consultancies find themselves in a race to the bottom. How are the different consultancies affected by this trend?
1) Within MBB, do they feel the pressure equally? What about the competition of MBB with Big4/Tier2? Concessions to the rates surely must be avoided at all cost to maintain their reputation?
2) How do the Big4/Tier2 react to competition within their league? They price lower than MBB, but why would a client choose e.g. EY over KMPG, or ATK over Roland Berger, when they all have practices with similar capabilities? Is it all about the rates at the end of the day? I assume expecially the Big4 all have 200k employees each, and cover similar areas of work, both in content and geography.
3) My third question is about strategy units within Big4 & Accenture: what's the future of Monitor Deloitte, Strategy&, etc. in a landscape with MBB, and smaller, 'purely' strategic companies? Being embedded in a huge company must both advantages and inconvenient points. Is there a chance of keeping a 'strategic' profile and pricepoint, when differentiation from the 'leviathan' (their mother organisation) becomes more difficult?
I'm interested in where the industry is going in the next 10 years, and how this will affect the job of a consultant at these three groups of companies/units. Cheers