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The Risks Associated with Hiring A New Technology Consulting Company

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by Justin Scott
VP, Business Applications

In today’s fast-paced business world, technology consulting companies are essential for organizations to make the most out of their technology investments. However, hiring a new technology consulting company involves some risks that organizations must be aware of. In this blog, we’ll dive into the potential risks organizations face when bringing on a new technology consulting firm for their projects. We’ll also discuss mitigating these risks and making informed decisions when selecting a new technology consultant. So, before you sign that new consulting contract, read on to learn more about the potential dangers to avoid when hiring a new technology consultant company.

  • Cost: While using a consulting technology company can be cost-efficient compared to hiring a full-time team, it can still be expensive if there is no mechanism to keep a pulse on costs. One way to mitigate this risk is to find a consulting practice that uses agile development practices so that you can see progress along the way. This allows you to stop spending further if you feel the consultant company is not producing the necessary value. If a consulting company wants to collect requirements and then come back months later to show you the completed project months later, that is a huge red flag. Instead, they should deliver demonstratable parts every 1-2 weeks and have collaborative sessions to get clarifications along the way. They should also be willing to update you on the project and expenses at least every two weeks to ensure the project is on track and within budget. They should also use project management software that shows goals and progress.
  • Integration: Integrating a consulting technology company into your organization’s culture, workflow, and processes can be challenging. The approach may have communication barriers or conflicts that can cause delays or other issues. Make sure to find a consulting practice that regularly collaborates with your teams. Daily team syncs and occasionally meeting in person can go a long way to help smooth over cultural differences.
  • Knowledge Transfer: When the consulting project is completed, your team may not have the same knowledge and expertise as the consulting team. This can make it difficult to maintain and enhance the solutions developed by the consulting company, which can result in a loss of value over time. You can reduce this risk by choosing a consulting company willing to do training and documentation throughout the project.
  • Data Security: Using external consultants for technology projects can expose your business to potential data security risks. The consulting team may have access to sensitive data, and if not managed properly, it can lead to data breaches or other security risks. You want to be sure the consulting practice has structured training around security. For example, in the healthcare space, HIPPA and data privacy training are essential, and you should ask to see what training programs potential consulting companies have. If they cannot produce actual up-to-date certificates for the training for each team member, that is a red flag.

While there are many benefits to using a consulting practice for your next project, there are also some risks. When choosing a consulting company to work with, compare how these companies reduce your risks to costs, integration, Knowledge transfer, and Data Security.

If you are looking for an IT consulting firm that truly understands your organization’s needs, then Provisions Group is the right choice for you. With Provisions Group, you get a partner who meets you right where you are, and scales with you as your needs evolve. Our team of experienced professionals brings the necessary skills and expertise to ensure the successful execution of your IT initiatives. We prioritize a people-first culture, listening to and valuing the needs of your team, which results in higher levels of job satisfaction, improved employee retention, and, ultimately, greater success for your business. So, if you want a partner who truly understands and supports you, choose Provisions Group as your IT consulting firm.

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