The internal consultant
may not bring the objectivity to the consulting relationship that an external firm can.
An internal consultant
also may not bring to the table best practices from
other corporations. A way to mitigate this issue is to recruit experience into the group and/or proactively
provide diverse training to internal consultants.
Where the consulting
industry is strong and consulting compensation high, it can be difficult to recruit
It is often difficult to
accurately measure the true costs and benefits of an internal consulting group.
When financial times get
tough, internal consulting groups that have not effectively demonstrated economic value (costs vs.
benefits) are likely to face size reductions or reassignment.
Spending on Consulting - United Kingdom
From 1997 to 2006, Labour
governments have spent £20 billion for management consultants and at least another £50 billion for IT
systems, up significantly from the £500 million a year spent by the previous Conservative
government. From 2003–2006 spending on consultants has risen by a third, from £2.1 billion in
2003–04 to £2.8 billion in 2005–06, largely due to increases in spending by the National Health
Service. In the past three years £7.2 billion has been spent on consultancy services from large