All too often, companies hire outside consultants to suggest ways for the company to operate more efficiently. If companies were to spend more time listening to their own employees, such consultants would be unnecessary.

Several business concerns, nowadays, outsource some of their tasks (headhunting, event management, legal advisory) to external bodies. Consultants are also hired to give advice on how to improve a company's profitability and future growth prospects. This growing practice has attracted both bouquets and brickbats and it may be warranted to discuss the need for consultants in a balanced manner. The following paragraphs make an attempt to do this.

Some of the elementary management mantras suggest that a company or business concern should focus on its core compentence: in other words, specialize in the tasks it can do best. A company that focuses on its core functions can develop them further and hence operate more efficiently, without distractions. It follows that, it might be a good idea for a company to outsource some tasks to consultants or external experts. Such experts who are specially trained for advising other businesses with regard to certain aspects of functioning or operations can surely add value to the company, and vindicate the position of hiring them. For example, if a company has to host an event, it will most likely outsource it to those specialized in event management and public relations. The employees of the company, then, can augment their efficiency by focusing on their strengths and not working on other distracting tasks pertaining to managing elaborate events that include sending invitations to guests, arranging for catering, transportation and so on.

In addition to bringing expert knowledge, external agents could also introduce a new insight to the company, as they look at the latter through an objective lens. Contrast this with the advise of internal employees, which might be biased, sychophantic, or, simply more conservative. Employees of a company may be conditioned in a manner that does not allow them to think out-of-the-box. Further, fear of reprimand could result in hesitation on part of employees to point out errors or suggest radical steps. In such a scenario, a consultant could allow the management of the company to take some difficult decisions.

The above discussion is not to suggest that consultants are indispensable. In certain companies, bringing in external experts could pose a threat to data security, privacy, national security etc. For example, intelligence agencies can rarely afford to outsource tasks to consultants, due to the strategic implications. Moreover, companies could surely benefit if its employees are from a diverse background and can serve as generalists, working on various areas simultaneously. However, for true benefits to be reaped, a healthy discussion and feedback system should be made part of the company's culture.

To summarize, with the growing need to focus and specialize on one's core competence, and the proliferation of consultants, business advisors and the like, hiring consultants doesn't seem to be entirely "unnecessary", as suggested in the given statement. Although the prospect of hiring consultants might be precluded for organizations concerned with national security or classified information, most other companies can benefit from the expert knowledge and objective advice of consultants.