5 Reasons Big Consulting Firms Are Failing in ERP & Digital Transformation (And What to Do Instead)

For decades, big consulting firms like PricewaterhouseCoopers (PwC), Deloitte, Accenture, KPMG, and Capgemini have dominated the ERP consulting and digital transformation space. Their extensive networks, vendor partnerships, and reputation made them the default choice for organizations embarking on ERP implementations.

But that era is coming to an end.

As businesses demand unbiased ERP consulting, cost-effective digital transformation strategies, and greater project transparency, the traditional big consulting model is proving to be outdated, inefficient, and unsustainable.


The Hidden Bias in Big ERP Consulting Firms

Big Firms Push Specific ERP Vendors—Not What’s Best for You

A major issue with large consulting firms is their bias toward specific ERP software. Instead of helping clients objectively evaluate the best ERP system, these firms steer organizations toward vendors they have financial ties with.

Why does this happen?

  • Revenue Incentives: Big firms earn commissions from ERP vendors for successful implementations.
  • Existing ERP Practices: They prioritize systems where they have the most in-house consultants—whether it’s SAP, Oracle, or Microsoft Dynamics.
  • Lack of Objectivity: Their recommendations serve their business interests, not yours.

Example: Many large consulting firms pre-select ERP solutions before the evaluation process begins, spending months justifying their choice rather than conducting an unbiased analysis.


How Big Consulting Firms Inflate Costs & Extend ERP Timelines

The Cost Problem: Overstaffing & Inflated Budgets

Big consulting firms overstaff ERP projects with unnecessary resources.

The result?

  • Clients pay for excessive headcount rather than true expertise.
  • Large firms deploy junior consultants while billing at senior consultant rates.
  • Projects take longer than necessary, increasing costs without adding real value.

The Conflict of Interest: Maximizing Billable Hours, Not Efficiency

Large consulting firms structure their business around one key goal: maximizing billable hours. Their revenue model incentivizes them to extend projects unnecessarily.

A Fortune 500 company may require 200 full-time consultants for a complex ERP project, but big firms apply the same staffing approach to mid-sized businesses—even if they only need a lean, strategic team.


Why Businesses Are Choosing Independent ERP Consultants

Lack of Transparency & Superiority Complex

Big consulting firms often operate with a superiority complex, treating client teams as passive participants rather than partners.

Common Issues:

  • Lack of transparency – They keep project risks hidden until it’s too late.
  • Resistance to feedback – They act as the sole authority rather than collaborating with your team.
  • Overpromising & underdelivering – They tell executives what they want to hear, not what they need to know.

Solution: Work with independent digital transformation consultants who provide:

  • Full transparency in project planning and risk assessment
  • Clear cost control with justifiable resourcing
  • Unbiased ERP selection focused on your business needs

The Future of ERP & Digital Transformation Consulting

Organizations are no longer willing to pay millions for biased recommendations, bloated teams, and hidden project risks. The shift is clear:

Companies are turning to independent, tech-agnostic firms that provide:

  • Unbiased ERP & digital transformation consulting
  • Strategic oversight without vendor bias
  • Senior consultants with real expertise
  • Transparent cost structures with optimized staffing

Take Control of Your Digital Transformation

If you’re planning an ERP implementation or digital transformation, don’t fall into the trap of big consulting firms’ outdated business models.

Download our Free Digital Transformation Report to explore:

  • The hidden risks of working with big ERP consulting firms
  • Strategies for a successful ERP selection & implementation
  • Case studies on independent consulting success

Click here to download now


Final Thoughts: The End of Big Consulting Firms?

While big consulting firms may still have a place in the industry, their flawed business model is no longer sustainable. Companies that take ownership of their ERP projects and work with independent digital transformation experts will be the ones who succeed in the evolving technology landscape.

Schedule a Free Consultation with Third Stage Consulting

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Eric Kimberling

Eric is known globally as a thought leader in the ERP consulting space. He has helped hundreds of high-profile enterprises worldwide with their technology initiatives, including Nucor Steel, Fisher and Paykel Healthcare, Kodak, Coors, Boeing, and Duke Energy. He has helped manage ERP implementations and reengineer global supply chains across the world.

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