The General Services Administration (GSA) has sent a strong warning to federal agencies, urging them to cut “nonessential” consulting contracts worth over $65 billion by March 7. The GSA is targeting top 10 consulting firms that it believes are spending the most with government agencies.
In a statement, Acting GSA Administrator Stephen Ehikian wrote that the agencies must change their spending habits and identify more cost-effective alternatives. This move comes as artificial intelligence (AI) continues to disrupt the consulting industry, forcing firms to adapt or risk being left behind.
The trend is clear: clients are now demanding that consultants deliver on a dual mandate – driving growth and optimization simultaneously. As AI plays a central role in this shift, consultants must rethink their approach to delivering value to clients.
Meanwhile, PwC’s advisory and consulting services have been temporarily suspended in Saudi Arabia due to the Public Investment Fund’s concerns over auditing projects being affected.
In other news, Baker Tilly has announced its top 10 remote accounting candidates for job seekers, while a German court has ruled that EY Germany is not liable for damages in a Wirecard lawsuit. The House has also passed a Republican budget plan that includes deep cuts to taxes and spending.
As the consulting industry continues to evolve, it’s clear that agencies must be proactive in managing their spending and identifying cost-effective alternatives. By doing so, they can ensure that their resources are being used efficiently and effectively to deliver value to taxpayers.
Source: https://www.goingconcern.com/friday-footnotes-consulting-both-drying-up-and-popping-off-parents-pissed-at-rsm-irs-layoffs-nbd-says-ex-commish-2-28-25