To sum up, there are three reasons:
First, the number and scale of consulting companies and employees are increasing rapidly, and the industry represented by price war is fiercely competitive and involuted, which makes the consulting market worse and harder to do.
I believe that many senior employees, especially those in pre-sales positions, have deeply realized this. Due to the high profit of consulting business and the superiority of consulting income in the golden age, enterprises or individuals from all walks of life have changed careers and squeezed into consulting industry. Among the colleagues I know, there are not only computer-related majors and management-related majors, but also graduates of chemical engineering, medicine, machinery and even liberal arts. Several like-minded senior consultants can set up a small consulting company in partnership, and then participate in the competition to take orders for the project. Some universities even offer consulting majors and train a large number of consultants; Many training institutions are also constantly training a large number of consultants by fast food.
Consulting companies are everywhere, consultants are everywhere, and there are so many cakes of project opportunities. It is no exaggeration to say that the competition between consulting companies is close to white-hot.
Second, whether at home or abroad, the head enterprises, backbone enterprises and large enterprises in various industries have been de-institutionalized, the project opportunities have shrunk sharply, and the situation of more wolves and less meat has intensified the involution in the industry.
Thirdly, with the continuous participation of Chinese enterprises in internationalization and learning from foreign advanced management experience, the internal management level of enterprises is getting higher and higher. For the enterprise information construction, the asymmetry between Party A's enterprises and consulting companies in system and project implementation is getting lower and lower. Party A's enterprises have many peer companies implementing the system in the industry for reference, which peer companies have successfully implemented the system and developed their enterprises; Which peer companies failed to implement the system, and the management level and efficiency of enterprises declined; Which consulting company did these peer companies invite to help implement the system, etc. And Party A's enterprises can easily obtain first-hand information. In addition, many IT leaders of Party A's enterprises are consultants themselves. The IT leaders of these enterprises have a deep understanding of the consulting industry, and they know all kinds of clear rules, hidden rules and routines within the consulting industry. In other words, in the face of Party A's customers, consulting companies need to make every effort to gain recognition and project opportunities, and price wars are indispensable!