What are the Challenges Faced by Research Consulting Firms While Implementing Business Strategies?

In the gig-driven economy, business owners happily hire research consulting firms to bring in trusted results and implement their business strategies. They hire consultants as freelancers or employees to bring a third-party perspective to their office. A modern approach to driving business and seeing results is still finding its position in the digital age. So, risks and challenges are still important factors.

Understanding the challenges that consultants face in the current business world is crucial. The economies have grown so exponentially that finding new research projects and retaining existing clients have become harder than ever. Let’s look at a few challenges research consulting firms face while implementing business strategies.

• Market Unpredictability

The global COVID-19 pandemic has instigated turbulent times, bringing unpredictability to the marketplace. Nevertheless, market unpredictability has been a significant challenge for research consulting firms for several years now. The consulting industry has evolved quickly from interpersonal contacts and networks to an online playing ground. The business landscape is growing too. M&As are taking place at a record pace, and varying business models are popping up frequently. This churn in the marketplace is expected to stay, and consulting firms must adapt to its unpredictability.

• Changing Client Behavior

Factors like social media, online search, and other non-conventional channels have changed how business owners find and hire research consultants. Now, firms have to build their reputation online through sophisticated offsite and onsite marketing programs. Direct engagement on social media is another factor to consider. Consultants who are still unprepared to accept these changes will have time run out soon. Therefore, consultants must embrace digital solutions quickly to compete in the rapidly evolving marketplace.

• Increased Competition

Research consulting firms are facing challenges from existing as well as new competitors. Firms that are not established in the industry yet are worried about their survival against competitors with disruptive business models. After all, the research consulting industry is going through a great deal of consolidation, and the latest technologies threaten their existence. No wonder consultants that are not a part of these trends find their future in the darkness.

• Requirement of New Skills

As new techniques and technologies arise in the industry, consultants feel the pressure to adapt to the constant changes. If they fail to do that, the competitors will. Besides that, keeping up with the pace requires the right skill sets. A firm can either upskill and reskill its existing workforce or hire new talent with those skills. Some firms may use both of these approaches, but there are challenges to face. For instance, training old staff consumes their productive time, while hiring new skills is very expensive. Competitive firms recognize the need to hire the right skill sets to compete in the industry.

• AI and Automation 

AI and automation are the highest anticipated challenges research consulting firms worldwide face. Consulting firms with access to the latest technology have a clear advantage over their slower competitors. 

In the current scenario of tremendous changes, these are a few challenges research consulting firms face today. To adapt to the increasing marketplace pressures and move ahead, they must hire knowledge partners who can give them the power of data and the latest technology. By leveraging opportunity in adversity, a researcher can build a resilient and robust brand to stay and build appropriate business strategies.