Season 2, Episode 12: How Market Shifts and AI Are Reshaping Consulting

The Consultant's Way Podcast

The Consultant's Way Podcast
Season 2, Episode 12: How Market Shifts and AI Are Reshaping Consulting
Mar 24, 2025 Season 2 Episode 12
The Consultant's Way

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About The Consultant's Way Podcast
The Consultant's Way podcast is your go-to resource for navigating the complexities of the consulting and professional services world. We bring you insightful conversations with industry thought leaders and executives from top Professional Services organizations, sharing their expertise on how to:
• Build high-performing consulting and professional services teams
• Differentiate your offerings and increase organizational growth
• Deliver exceptional client value and drive impactful outcomes

Brought to you by:
McMann & Ransford: A strategy consulting firm with over 30 years of experience helping leading B2B organizations escape commoditization and achieve sustainable growth. Learn more: https://mcmannransford.com/
• The Consultant's Way: Your one-stop shop for training and enabling consultants and professional services teams to deliver exceptional client value. Learn more: https://www.consultantsway.com/

Connect with us:
LinkedIn:
○ Dean McMann - https://www.linkedin.com/in/deanmcmann/
○ Anthony Paluska - https://www.linkedin.com/in/anthony-paluska-5081804b
Email: podcast@consultantsway.com

Interested in being a guest? 
We're always looking for insightful guests to share their expertise. Reach out to us via email or LinkedIn if you'd like to be considered for a future episode.
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In this episode of The Consultant’s Way Podcast, hosts Dean McMann and Anthony Paluska discuss key events shaping consulting and professional services. They start by analyzing the new administration’s efforts to cut government spending, including the cancellation of 22 consulting contracts totaling $45 million. While these cuts mainly affect firms specializing in government contracts, they signal a broader shift toward scrutinizing consulting expenditures. The hosts debate the long-term impact, acknowledging that while some realignment is necessary, the ripple effects could disrupt Washington, D.C.'s economy and lead to job losses. They also note some consulting firms may still find opportunities advising on these very cost-cutting initiatives.

The conversation shifts to the trend of professional services teams in SaaS and product companies expanding beyond implementation. Many organizations now push PS teams toward strategic, consultative roles, increasing their value and making software offerings “stickier” with clients. The hosts question whether this is an industry-wide movement or a trend among firms already inclined toward this shift. They express interest in gathering data to determine if this transformation is a corporate mandate or an organic evolution led by ambitious PS leaders.

Next, they discuss research from Future CIO on barriers to enterprise software adoption. Findings reveal that internal misalignment on desired outcomes, uncertainty about vendor capabilities, and disagreement on key features are major hurdles. The hosts note these challenges highlight the need for tech providers to go beyond selling software and instead help clients clarify business objectives before making a purchase.

Finally, they explore the latest AI developments, specifically DeepSeek’s cost-effective AI model. SAP’s CEO recently praised this innovation, suggesting it could democratize AI access for mid-sized tech firms previously unable to compete with giants like Google and Meta. The hosts agree this shift could level the playing field and accelerate AI adoption across industries. They close by emphasizing the need to stay ahead of these changes and invite listeners to share topics for future discussions.