CHOOSING A CONSULTING COMPANY.

What size firm will help you meet your next IT challenge?

As more companies look for outside help with their fast-changing information technology requirements, they're finding that one size does not necessarily fit all needs when choosing the right consulting firm -- and that mid-sized firms can be an attractive alternative to large companies and independents.

Making the right choice is largely a function of compatibility: an alignment between what both the client and service provider expect from a relationship. Before even beginning the selection process, the client must have a clear understanding of their current and future requirements. Only then can they choose the firm that provides the right combination of services, quality, flexibility and cost competitiveness.

So when is a mid-sized consulting company the right choice?

Niche market expertise

A mid-sized IT consulting company generally has more than one office location, but is smaller than firms that have a nation-wide or global presence.

Typically, mid-sized companies offer the same range of IT skills as a larger company. These include:

* strategic planning;

* business process re-engineering;

* e-commerce solutions;

* project management;

* software development, including object-oriented analysis and design using the unified modeling language (UML) and object-oriented programming such as Java, Visual Basic and C++;

* a high level of quality assurance by following accepted methodologies, processes and practices;

* database services;

* outsourcing services, where the consultant assumes accountability for an application to service levels. This may include placing staff at the client's site; and

* enterprise resource application (ERP Solutions) implement and support.

However, many mid-sized companies are also niche market players, having grown through word-of-mouth to develop a number of clients within the same industry. They have developed in-depth business expertise within that market that supports and enhances their ability to meet the majority of a client's IT needs.

For example, if a mid-sized firm focuses on services for the utility industry, there is a real comfort level for clients in dealing with a company that already knows their business.

While mid-sized firms may not have the geographic footprint to provide the one-stop shopping of a global consulting firm, they can partner with a global firm locally or regionally to provide niche market expertise in a way that gives a seamless interface with the client. Large clients that use multiple service providers may also choose to add a mid-sized consulting firm to gain access to the best expertise in a specific area.

Focused responsiveness

A mid-sized firm's combination of smaller size and in-depth knowledge of a particular industry can also work to a client's advantage when it comes to responding more quickly to the new technologies.

Mid-sized firms often work on smaller projects, particularly those related to their niche market expertise. It is simply easier to try out a new technology on a small-scale project than on one that has global implications within a widespread corporate structure.

For example, the architecture for deploying Internet applications is changing. This architecture incorporates three components -- the server side, the communications and the (thin) client. Better applications will be built using the component architecture. Through component architecture, organizations will be able to add, remove or otherwise change business functionality as easily as users change printers on their word processors. The focused expertise of mid-sized consulting firms can often help companies build and maintain applications faster and more cost-effectively.

Cost efficiency

The very fact that many mid-sized firms grow from word-of-mouth, and not from large advertising budgets, is one way they stay cost competitive. They also have a cost advantage because they support a smaller infrastructure than larger firms.

This adds to their ability to react quickly to business changes, particularly within the information technology industry, where new developments and trends such as deregulation require quick adaptation and training of employees. It's simply a matter of different logistics and volumes compared to a larger firm. Mid-sized firms can be more flexible in a shorter period of time.

Building long-term relationships

Providing quality and service should be a priority for small, mid-sized and large firms because they are the crucial elements in establishing their guarantee of success: sound relationships with both clients and employees.

Often, the relationship between a client and mid-sized firm, for example, is a partnership that lasts many years. In forging that partnership, clients are looking for quality work and the ability to adapt quickly to changing needs. But they are also looking for a company that has a good relationship with employees, since

How will I know?

Selecting the right service provider requires careful planning on the part of the client. Before signing on the dotted line, they should have the answers to the following questions:

* Business requirements. What is needed, how quickly, and what are the implications for meeting both current and future needs?

* Cost. What are the short and long-term costs and paybacks? Can the service provider do the job within the budget limitations?

* Performance. Does the service provider have an established reputation for delivering quality services on time and on budget?

* Relationship. What are the client-side expectations from the relationship and what are the expectations of the service provider? Are they clearly understood by both sides?

* Skills set. Does the service provider have the skills set, human resources and technological depth to meet project requirements. -- now and in the future? the consultant's employees can be at their workplace for a long period of time. They like the continuity of dealing with the same people.

Of course, clients are also looking for a company that delivers -- so no matter what the size of the consulting firm, they had better be able to produce on time and on budget.

Making the choice

Easy as it is to build a case for the mid-sized consulting firm, it would he foolish to think a mid-sized firm is always the right choice.

If a company requires 200 people to meet their needs, they may need a larger firm. If a company has global requirements, where they need to integrate the work of their service provider with service providers in other regions or countries, then a global firm is the way to go. When your needs are not that large, a mid-sized consulting firm could be a better fit.

Mid-sized firms are capable of delivering quality services to the service levels you define. They can often meet your needs as readily as a larger organization and in a cost-effective manner. In addition, if you have niche market or special technical requirements a mid-sized company may be your best choice.

And, if your needs are very small scale and/or for a short period of time, then perhaps an independent contractor should be considered.

Niche market knowledge, responsive expertise, cost-efficiency and quality are the core benefits a mid-sized IT consulting firm has to offer a client.

However, customers are also looking for a company that has a stable history, a resource base on which to draw, and a firm that is interested in a relationship, rather than just a piece of work. This is where mid-sized consulting firms that specialize in information technology can really shine.

They not only build long-term relationships, they count on them -- and that's an asset well worth considering when measuring a consultant for the right fit in meeting the next IT challenge.

Evelyn Kelly, CMA, is a partner and general manager for Western Canada of Vercom Systems, a mid-sized consulting firm specializing in software development and services, with a focus on the utility business.