As companies are becoming more informed, they’re looking for real help in both updating their business models, and digital technologies to form a digital business. Phil Fersht talks about the challenges for companies and consulting firms looking to include a digital business model. Only a few firms (companies and consulting concerns) have that expertise.

Video Transcript: Transformation Challenges Among Consulting Firms

Client’s today, there’s a lot more free information out there. They’re smartening up in what they want and need to do and they’re wanting some real help with some of these very complex areas of change in the model and this type of thing. They’re often the consulting providers don’t have the skill sets and capabilities to help them.

So their biggest challenge is the same as the client’s challenge. They’ve got to find the skills and the people to do it. At the same time, the clients don’t want to spend tons more money to get the different skill set. So this skills issue is absolutely rampant across the third-party advisors, rampant across the enterprise client, rampant across the outsourcing servicing firms. They’re all trying to get the talent.

They’re all trying to get it at the right price just help their clients change and shift. And I have to say right now that a few are showing promise in getting there, and the providers with more high-end consultative business transformative skills are helping many clients through this change, but it’s often the clients who have lots of money. They like spending money on consultants and the can get there.

There’s a lot of mid-tier clients right now that if you don’t have those resources, don’t have that funding, and they don’t have the help to get there and it’s a big problem and I think it’s going to get worse before it gets better.