As business takes on global proportions, the amount of knowledge and expertise required to run it also increases by leaps and bounds. It is not possible for a program code writer to be an expert in the business that would use that program. For example, the person who develops SAP modules would not necessarily know the business process for which that module is being built. So the technical SAP person would take the help of a functional SAP consultant. And both these people would not have any idea as to train the employees in using those SAP modules. Hence there is a consultant who helps in the aspect of instructional designing.

There are many advantages of having a consultant working for a firm. The consultant would be immune to politics within the firm and be objective. They would have a broad spectrum of knowledge of the best practices followed in other firms. They will also function as a bridge between the leaders and the employees as well as the customers of the firm. Consultants can be of three kinds, facilitators, team members and subject matter experts. In the context of outsourcing, consultants are hired because of their knowledge of the kind of service that needs to be outsourced along with the scope of that service. The consultant also identifies, evaluates and selects the vendor. He/she analyses pricing issues and provides advice about them. A 1999 study with 248 companies conducted by Prosci revealed that 65% of those companies hired consultants from outside the firm. Consulting companies place their practitioners on client service. Some of them though, work on internal projects that aid in attracting client work.

Number of consultants working in the corporate sector has indeed increased. But what is more staggering is the number of consultants being hired by NHS. Mr. John Reid, health secretary announced that 9,200 more consultants were working in NHS compared to the figure in 1997, a 42.7% increase. Management consultant is the new player in the business world. The job of the management consultant is to sell advice. Companies like Figgie, Sears, and AT&T have bought the services of consulting companies like Andersen Consulting and McKinsey & Co.

Now compare the scale with the expanding consulting industry in India. Along with local players such as Tata Consultancy Services, companies such as Deloitte, KPMG, Ernst & Young and PWC all look towards growing their business base in the country. Indian consultants are now known as “ConSULTANts”.