8 advantages of hiring external consultants over internal consultants

When it comes to hiring people to help with business projects, you’ve got two choices: internal and external consultants.

Sometimes, it’s hard to decide whether to pull someone from your own internal consulting team or hire an external consultant.

Let’s break down why hiring external consultants can often be the way to go.

1. Fresh eyes on the problem

External consultants have worked with multiple clients and have seen how different business units operate. They bring unique insights from outside your company and lay down a solid foundation for better company practices. Here’s how this can be an advantage:

• Diverse Perspectives: Having worked with various industries, they can introduce innovative solutions that internal teams might not have thought of.
• Benchmarking Best Practices: They can compare your company practices with industry leaders, helping you adapt strategies that lead to success.

2. No office politics

We all know internal office politics can be tricky.

External consultants work without getting tangled in that web, helping them solve conflicts related and often make quicker decisions.

Here’s what that means for your business:

Neutral viewpoint: External consultants are unattached to any internal teams or alliances within the company, allowing them to provide recommendations without personal biases.

They can look at problems without any preconceived notions or preferences, giving a more objective assessment. And by not taking sides, they ensure that decisions are made in the best interest of the project or organization.

Conflict resolution: Conflict within an organization can be detrimental to progress. External consultants can mediate between conflicting parties, providing objective solutions.

Without being emotionally invested, they can calmly analyze the situation and propose fair solutions. Many consultants specialize in conflict resolution and can use proven methodologies to guide teams towards agreement.

3. Experts at your service

Consulting firms offer professional consultants with specialized skills.

Whether it’s IT consulting, business consulting, human resources, or anything else, external consultants have the expertise you need.

Here’s how they can provide better value:

• Access to specialized knowledge: Is there a specific technology or regulatory compliance that your internal team is unfamiliar with? External consultants often specialize in niche areas and can provide the precise expertise you need.

Flexibility in service: One of the standout benefits of hiring external consultants is the flexibility they offer in terms of engagement and service.

Unlike full-time internal employees, external consultants can be hired to suit the specific needs and timelines of a project.

4. Specialized attention to your project

Hiring an external consultant allows your company to bring in expertise focused on a particular project.

Unlike internal consultants who may be divided between multiple business units or other internal responsibilities, external consultants can provide undivided attention to the task at hand.

Plus, external consultants are often hired for their expertise in a specific field or industry. Their specialization and focus mean that they are better able to achieve the goals and meet the timelines set for that project.

5. Save on costs

While the initial expense of hiring external consultants might seem high, it often turns out to be cost-effective, especially for large companies.

Comparatively, maintaining internal consulting groups or internal consulting teams can be more expensive over time.

Here’s a breakdown of how hiring external consultants can lead to savings:

• Project-based payment: You pay external consultants only for the specific project or consulting work they are engaged in. Once the project is completed, there’s no ongoing salary or benefits expense.
• Flexibility: If your needs change, you can easily scale the involvement of external consultants up or down, without the long-term commitments associated with hiring full-time internal employees.
• Limited human resources responsibilities: Since external consultants are not permanent staff, there’s no need for ongoing human resources management, such as benefits administration or employee development programs.

6. Clarity in budgeting and expenses

When working with external consultants, it’s common for companies to agree on a predefined budget for a particular project. This approach can lead to several cost-related advantages:

• Fixed project costs: External consultants or consulting firms often offer services at a fixed price for a particular project. This clear view of costs helps businesses make profitable decisions.
• Detailed breakdown of expenses: Consultants usually provide a clear and detailed breakdown of expenses related to consulting work. Specialized platforms like the Onsiter VMS can provide a unified view of the number of hours spent, tasks completed, and materials used, allowing internal teams to understand where the money is going.
• Flexible payment schedules: Depending on the agreement with the external consultants, businesses can set up payment milestones tied to specific deliverables. This helps internal consulting groups or internal consulting teams to align payments with tangible progress.

7. Learn from the best

The consulting industry is full of business consultants who are experts in various fields.

When comparing external and internal consultants, external consultants often have the advantage of diverse exposure across industries and trends.

They can offer fresh perspectives and innovative solutions to your business challenges.

Here’s what you can expect:

• Diverse experience: External consultants work with multiple clients, allowing them to bring best practices and valuable insights to your company.
• Competitive edge: By learning from a professional consultant who has hands-on experience in the latest industry trends, your internal team can enhance their skills and strategies, leading to a competitive advantage.
• Transfer of knowledge to internal teams: External consultants can work closely with your internal clients, infusing infuse new ideas and methodologies.

8. Positive change

Change in business is inevitable and often necessary. But navigating change can be complex. When it comes to bringing change, some of the advantages that external consultants can bring to your organization are:

Adaptation to market trends: External consultants specialize in staying ahead of the curve, closely monitoring emerging trends and shifts in the market. They use this knowledge to analyze your current strategies and recommend adjustments or new approaches that align with the latest industry directions.

This proactive guidance ensures that your business is always positioned to take advantage of new opportunities, rather than reacting to changes after they’ve already occurred.

Wrapping it up

When you need to hire a consultant, the choice between internal consulting and external consultants isn’t always easy. But as we’ve seen, external consultants bring a lot to the table. From avoiding internal office politics to providing valuable insights and professional consulting services, they often prove to be the better option.

Whether you’re a small business or part of large companies, considering factors like internal team dynamics, company practices, and what consultants tend to offer can help you make the right choice. The expertise and efficiency that external consultants work with can give you the edge you need.