Executives Curtailed Reliance on External Consultants
Leaders are prioritizing internal decision-making and tech partners, signaling a shift for professional services.
Updated on Sept. 28, 2026 in Business Strategy
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Large companies have begun reducing their dependence on external advisory firms as executives look to internalize processes and lower costs. This strategic pivot coincides with slower growth for major consulting practices, with global market projections now settling at 5-7 per cent annually.
Why it matters
Financial pressure is driving businesses to move away from traditional advisory reliance, favoring technology firms for major shifts. This trend directly impacts how leadership teams address internal decision-making and judgment gaps previously offloaded to consultants.
Deloitte reported $74.5bn in global revenue with consulting growth at 2.5 per cent, while PwC UK recorded £4.4bn in revenue alongside a 9.8 per cent decline in consulting. Currently, 26 per cent of C-suite direct reports are actively reducing external advisor usage.
The players
Deloitte
A global professional services network providing audit, consulting, and advisory services.
PwC UK
A multinational professional services firm operating as one of the largest accounting and consulting providers in the United Kingdom.
The details
Corporate leaders are increasingly bypassing traditional consulting firms in favor of technology companies, which now function as the primary point of engagement for major business pivots. While 30 per cent of respondents previously retained advisors to address mid-level decision-making gaps and 16 per cent for judgment deficiencies, firms are now attempting to bridge these gaps through internal innovation. This shift forces consulting practices to move from lead advisors to secondary partners, changing the competitive landscape for professional service providers.
Timeline
Deloitte reported global revenue for the 12 months to May 2026.
PwC UK reported results for the financial year ending June 2026.
The financial and market results were announced in September 2026.
Market Landscape
This contraction marks a departure from the multi-decade industry trend of outsourcing critical strategic judgment to traditional consulting firms. The pivot suggests a broader market cycle where internalizing decision-making becomes a competitive priority for large enterprises.
Operators should evaluate if their current advisory spend is masking internal decision-making deficiencies that could be addressed through better internal talent management. Consider reviewing the cost-benefit of retaining generalist consultants against partnering with specialized technology firms.
The takeaway
The move toward internalizing judgment and decision-making is a signal that leaders are scrutinizing the ROI of outsourced professional services. Review your upcoming project budgets to determine if internal teams can absorb roles previously held by external consultants.
Further reading
For more on the current shifts in corporate structural planning, explore our Business Strategy section.
Source note: This article includes information reported by CityAM.
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