| As someone that has been on the hiring side, I always prefer to build a full time team, even if that means paying for someone in my team to learn something new. The part that consultants don’t talk about is that you have to pay them to learn your code / company too. Nobody can just jump in and add value immediately. So you’re paying for onboarding hours, you’re paying for other employees to educate the consultant, and so on. Likewise as an engineer, I think the most interesting projects and companies err towards primarily full time people. So if my goal is to work on the most interesting projects, I’d want to work full time. A lot of consultants, for example someone helping with SOC2 compliance, is mostly copy pasting a large document with recommendations and moving some paragraphs around based on interviews with the team. Not different from your average lawyer helping with an estate plan or will. The reality is that for many things you do want the cheapest lawyer, because the project is simple and repetitive. It’s the uneducated that pay more. So yes for a murder trial I want to pay a lot for a lawyer, but for small things I don’t, and you shouldn’t either. I simply don’t buy the analogy. Finally, while consulting might be good for cash flow to hours-worked efficiency, it’s not clear it will make a person wealthier than other forms of income. I’ve met rich employees, founders, but not so much independent consultants. |
That said, here are some of my own, condensed across experiences:
- An executive wanted to use ML, couldn't get enough political capital to build a full-time team (and didn't have the knowledge to interview candidates anyway). A very small consulting firm, sourced from high personal trust networks, got an MVP going. That led to a FT team getting built. Code was a mess but started the flywheel and after several years everyone agrees it was a great ROI
- A large company had a tiny team using a technology that would be standard for FAANG but they had no support or training. Zero progress for about a year. Not important enough to throw huge money at but that link in the chain was becoming a bottleneck for the core product. A consultant came in explicitly as a multi-week trainer, and but the team just never got up to speed. Consultant's code examples grew until they were just direct bugfixes, and though nobody was happy, at least the crisis was resolved.
- A product finally reaches product market fit. Executives decide to hire only after the team is drowning in tech debt. But it has to be full time, and it has to be junior. It takes months, then requires training. Tech debt is twice as bad as the original crisis level when the new hire becomes value positive. For some bizarre reason he leaves after exactly 2 years.
Many consultants have a branding problem: Their biggest victories are fixing a disaster that their clients would rather not talk about publicly. Hard to put on a billboard, if you ever want work from that client again!