[jasmer]

So that's actually not 'hoodwinked'.

Paying $1B for a site that should cost $50M is 'hoodwinked'.

$150/hr is really not that much money, depending on the importance of the project, and having devs from India is fine.

Almost the entirety of the question in any given situation is 'Did it work out?'

Because if it did, it was worth it.

Companies are not interested in making 'great products' like a startup would, for some secondary thing.

Mostly, it's like construction: they need something built. That works. Not some kind of innovative thing.

They don't have a year to find 'top talent' and go through interesting architectures, or dynamic processes. They wouldn't even know how to do that.

You might be very well downplaying your input: if you are competent, know what you are doing, show up, and can solve the problem, you're probably worth every penny and much more. Now maybe that is or is not the case! Or maybe 'it depends' or maybe, some projects kind of necessarily require 'proper engineering'.

Now, all of what I just said would apply to normal circumstances. In Africa, it's so complicated. McKinsey is also very different office by office. Corruption is harder than we understand, because when it's a random event we can say 'oh, corrupt!' - but when it's normal trade practice aka 5% kickback for the buyer, well, it takes on a different characteristic.

[the_cat_kittles]

your comment just establishes a spectrum- on one extreme, you have what is essentially a helpful project manager, on the other extreme you have a worse than useless middle man. I think the point might be that Mckinsey is more towards the bad extreme than people think.

[jasmer]

For starters - 'McKinsey' actually doesn't do implementations. So you're not going to hire them to build something. Second, it's hard to fathom their value because it's very secretive. There's nary any real objective data.

[eastbayjake]

McKinsey does, in fact, build software with clients: https://www.mckinsey.com/capabilities/mckinsey-digital/how-w...

[jasmer]

Oh looks like they've changed their model. I would trust them to give strategic advice about something, or maybe some insights from an industry expert they might happen to have. Actionable or not, who knows. But I wouldn't trust them to 'build' anything.

[throwaway202212]

I worked in McKinsey Digital. Here's an example of the typical type of project we did:

- Client is a legacy bank

- Client wants to be a fancy new cool digital bank like Revolut

- Client brings in McKinsey to help get them there

- McKinsey (traditional side) does a strategy engagement first (4-8 weeks) to define priorities, budget, etc

- McKinsey Digital + traditional consultants come in to do the implementation. This includes architecture, actual tech building (more on this below), assisting with hiring and HR, coaching, financials, integration/de-integration with rest of business. Essentially everything involved with starting a "new" business.

If you want a single company to come in and literally do everything to build and run a new business I do think you would need an MBB-type company as they can bring in all these different skills (business, people, tech, process etc). I'm very reluctant to praise my former employer.

On the actual tech building side, McKinsey would typically bring only 1-3 technical people as it's cost prohibitive for the client (I was one of those people). McKinsey would help the client hire new people or bring in contractors (i.e. Nagarro and the likes).

[jasmer]

You tell me in 5 years if that actually worked out.

I suspect probably not unless they were following/copying some very tried and true path of an upstart.

'New Models' have so many dynamic aspects, you need 'good people and leadership' to do it, and generally it's hard for them to be truly copied.

Some smart consultants and a well-lead offshore team could make a run at it ... but it's a bit risky I think.

I can see how people might think that would work but I'm skeptical.

[paulcole]

> Paying $1B for a site that should cost $50M is 'hoodwinked'.

That’s not being hoodwinked either. If you’re happy to pay $1B for something and get that thing, then that’s your fault for not shopping around for a better deal.

Bernie Madoff and SBF hoodwinked people. Somebody charging a premium for their services and getting willing customers isn’t.