Professional Services Organizations and the Role of Consulting in the New Economy

INTRODUCTION In a world where technology and services are converging at a rapid rate, consumer (and client) needs are now dictating market forces more than ever before. Moreover, the distinction between professional consulting service firms, systems integration, and information technology (IT) service houses is blurring rapidly. Systems integrators wish to gain entry into the consulting space, while business consultants now understand the need to be able to deliver technical solutions also. As such, the capability of service firms to deliver technical and business expertise is a necessity in the new economy world of virtual and extended communities and organizations. Examples of the trend toward a concentrated combination of strategic and IT delivery capability are divisions such as the Business Technologies Group (BTG) of McKinsey & Co., the merger of Cap Gemini and Ernst and Young, the recent discussions between PricewaterhouseCoopers and Hewlett-Packard, the split between Andersen Consulting and Arthur Andersen, and the move by KPMG P A Y O F F I D E A