{
  "id": 10366796,
  "title": "Consultancy firms told to step up as bosses threaten to cut ties",
  "url": "https://urgent.news/2026/09/28/consultancy-firms-told-to-step-up-as-bosses-threaten-to-cut-ties",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-28T05:00:00.000Z",
  "source": {
    "name": "City AM",
    "slug": "city-am",
    "url": "https://www.cityam.com/consultancy-firms-told-to-step-up-as-bosses-threaten-to-cut-ties/"
  },
  "original_language": "en",
  "account": "Consultancy firms are facing increased pressure as businesses grapple with cost-cutting measures, according to a new report by Source. The once-booming post-pandemic consulting industry is now facing an ultimatum: innovate or be replaced. A significant number of direct reports to C-suite executives, 26%, revealed that their companies are actively reducing reliance on external advisors. Catherine Anderson, director of consultancy firm Deliver, emphasized that while consultants bring a fresh perspective and innovative ideas, clients are increasingly relying on them for invaluable insights. Despite this, internal decision-making deficiencies and judgments still play a crucial role in companies' reluctance to let go of external consultants. The rise of tech and data firms is also influencing clients' preferences, with two-thirds of senior decision-makers favoring technology firms over traditional consulting firms to navigate major business shifts. The global consulting market growth is projected to slow down to 5-7% per year, down from the rapid expansion seen during the Covid pandemic. Major consulting companies like PwC UK and Deloitte reported a slowdown in consulting growth, with Deloitte's core consulting operations growing by only 2.5% in the past year. This slowdown has been attributed to the market's single-digit growth pre-pandemic and the post-pandemic pent-up demand, which is now proving harder to capitalize on. Despite this, clients will continue to seek the help of external consultants to guide them through the challenges ahead.",
  "summary": "Stretched corporates are under pressure and looking to slash costs – and consultancy firms are in the firing line, writes Maria Ward-Brennan. The golden age of post-pandemic consulting is fading, leaving traditional advisory firms with a clear ultimatum: innovate or be replaced. The next generation of executives is pushing to reduce dependence on external consultants. [...]",
  "key_points": [
    "26% of firms reducing reliance on external advisors",
    "Technology firms favored over traditional consultants",
    "Consulting market growth projected to slow to 5-7%"
  ],
  "editors_take": "Consultancy firms face intensified pressure to innovate and prove their value as clients increasingly consider cutting ties and favor technology firms for navigating major business shifts.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}