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A group of internal consultants can closely monitor and work with external consulting firms. This would ensure better delivery, quality, and overall operating relationships. 

External firms providing consulting services have a dichotomy in priority. The health of the external firm is in aggregate more important than that of their client (though of course the health of their client can have a direct impact on their own health). 

 

 

 

 

 

 

Disadvantages 

  • 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 candidates. 
  • 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. 
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