Corporations Have Reduced External Consultancy Reliance
Executives are increasingly prioritizing internal processes and technology firms over traditional advisors.
Updated on Sept. 28, 2026 in Business Strategy
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Data reveals that 26 per cent of direct reports to C-suite executives are actively reducing their companies' reliance on external consultancy firms. Corporations are shifting their strategies to internalize processes or engage technology providers to navigate major business transitions.
Why it matters
Financial pressures and a preference for technology-first solutions are driving leaders to seek alternatives to traditional consulting services. This shift aims to minimize long-term dependency on outside advisory firms while fostering internal innovation.
Deloitte reported $74.5bn in global revenue with consulting growth slowing to 2.5 per cent, while PwC UK generated £4.4bn. Global consulting market growth is now projected to settle at a lower rate of 5-7 per cent per year.
The players
Deloitte
This is a multinational professional services network that provides audit, consulting, advisory, and tax services to clients worldwide.
PwC UK
This is a member firm of the PwC network, providing professional services such as assurance, tax, and advisory across the United Kingdom.
The details
Two-thirds of senior decision leaders now prefer technology firms over traditional consulting groups for major business shifts, often engaging tech providers before bringing in consultants. Internal deficiencies in mid-level decision-making and judgment, cited by 30 per cent and 16 per cent of respondents respectively, remain the primary reasons firms still retain traditional advisors.
Timeline
Deloitte reported global revenue of $74.5bn for the 12 months ending May 2026.
PwC UK reported revenue of £4.4bn for the financial year ending June 2026.
Deloitte and PwC announced results in September 2026.
Market Landscape
The shift toward technology-first partnerships signals a departure from the traditional consulting model that has dominated corporate strategy for decades. This realignment forces major firms to redefine their value proposition as market growth settles toward the 5-7 per cent annual projection.
Customers of these firms may see a move toward more streamlined, technology-integrated service packages as consultants adapt to tighter budgets. Companies focusing on internalizing decision-making may also face higher initial costs in hiring and training their own staff.
The takeaway
Businesses are increasingly prioritizing internal decision-making capabilities to reduce long-term consultancy fees. Leaders should evaluate whether specific external tasks can be automated through technology firms or internalized to improve overall operational agility.
Further reading
Learn more about the shifting corporate landscape on our Business Strategy page.
Source note: This article includes information reported by CityAM.
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