In an increasingly competitive and dynamic business landscape, Singaporean companies must develop effective strategies to ensure long-term growth, operational efficiency, and market competitiveness. However, organisations often face a crucial decision—should they rely on an in-house strategy team or engage the services of external business consulting firms in Singapore?
Both options come with unique benefits and challenges, and the right choice depends on a company’s size, industry, objectives, and resources. This article explores the key differences, advantages, and limitations of each approach to help businesses determine which strategy works best.
Understanding the Roles of Business Consultants and In-House Strategy Teams
What Do Business Consultants Do?
Business consultants are external experts who provide specialised advice, data-driven solutions, and industry insights to help companies solve challenges, improve efficiency, and drive growth. They typically:
- Offer independent perspectives on business challenges
- Provide expertise across multiple industries and business functions
- Assist in problem-solving, operational optimisation, and strategic planning
- Support digital transformation, risk management, and expansion strategies
What Do In-House Strategy Teams Do?
An in-house strategy team consists of full-time employees dedicated to analysing business performance, developing strategic plans, and ensuring long-term objectives are met. Their key responsibilities include:
- Understanding internal business operations, goals, and culture
- Collaborating with different departments to align strategies
- Conducting ongoing performance analysis and strategy adjustments
- Implementing and managing company-wide strategic initiatives
While both roles aim to enhance business performance, their approaches, expertise, and cost structures differ significantly.
Key Differences Between Business Consultants and In-House Strategy Teams
Expertise and Industry Knowledge
Business consultants bring broad industry expertise gained from working with multiple companies. Their exposure to different business models and challenges allows them to recommend innovative solutions that in-house teams may not consider.
In contrast, in-house strategy teams specialise in their own company’s operations. They have deep knowledge of internal processes and organisational culture, making them better suited for long-term strategy execution.
Cost and Financial Considerations
Hiring consultants can be expensive, especially for small and medium-sized enterprises (SMEs). While they offer short-term expertise without long-term salary commitments, repeated engagements can add up.
In-house strategy teams, on the other hand, require fixed payroll costs, but they provide continuous support without the need for repeated consulting fees. However, recruiting and retaining high-quality strategy professionals can be costly.
Objectivity and Unbiased Decision-Making
Since consultants operate externally, they offer objective recommendations without being influenced by company politics. This is particularly beneficial for businesses needing an unbiased evaluation of their operations.
In-house teams, while deeply integrated into the organisation, may struggle with internal biases and resistance to change, which can slow down strategic decision-making.
Implementation and Execution
Business consultants typically provide recommendations and roadmaps but do not execute strategies. Companies must rely on internal teams to implement the changes.
In-house strategy teams oversee execution directly, ensuring strategies align with company goals. This hands-on involvement allows them to make continuous improvements based on real-time business needs.
Scalability and Flexibility
Business consultants offer scalable solutions, making them ideal for companies needing short-term expertise or specific project-based support.
In-house teams, while effective for ongoing strategic planning, may be limited by internal resources and workload capacity. Expanding an in-house team requires long-term investment in hiring and training.
Advantages and Challenges of Hiring Business Consultants
Advantages
- Specialised expertise and industry knowledge – Consultants bring external insights and best practices from different industries.
- Unbiased and objective perspectives – They can identify inefficiencies and weaknesses without internal biases.
- Time and cost efficiency – Consultants provide immediate expertise without the need for permanent hires.
Challenges
- High costs – Hiring consultants can be expensive, especially for long-term projects.
- Limited understanding of internal operations – They may require time to understand company-specific challenges.
- Lack of implementation support – Consultants typically advise but do not execute strategies.
Advantages and Challenges of Building an In-House Strategy Team
Advantages
- Deep understanding of company operations – In-house teams know company goals, culture, and internal processes well.
- Continuous strategy development – Unlike consultants, they provide long-term strategic guidance.
- Lower long-term costs – Once established, in-house teams eliminate the need for frequent consulting fees.
Challenges
- Limited external insights – Teams may lack benchmarking data or fresh industry perspectives.
- Hiring and retention costs – Recruiting and training strategic professionals is a long-term investment.
- Potential resistance to change – Internal teams may be hesitant to challenge existing company norms.
Which Is the Best Choice for Singaporean Companies?
When to Hire Business Consultants
Business consultants are ideal when companies:
- Require specialised expertise in areas like digital transformation, mergers, or crisis management
- Need a fresh, unbiased perspective to identify inefficiencies and hidden risks
- Lack internal resources for strategy development
- Want fast solutions without long-term staffing costs
When to Build an In-House Strategy Team
An in-house team is a better option when companies:
- Require long-term strategic planning and continuous improvements
- Need a team that fully understands internal processes and culture
- Want to reduce consulting costs and retain intellectual knowledge within the business
- Have the budget to invest in hiring and upskilling strategic professionals
The Hybrid Approach: The Best of Both Worlds?
Many companies in Singapore adopt a hybrid approach, where they:
- Maintain a small in-house strategy team for day-to-day planning
- Engage consultants periodically for external insights and specialised expertise
- Use consultants to train and upskill their in-house team, ensuring sustainable strategic development
This approach provides cost efficiency, continuous strategy development, and access to external expertise when needed.
Conclusion
There is no one-size-fits-all approach when deciding between business consulting and an in-house strategy team. While consultants offer specialised expertise, fresh insights, and flexibility, in-house teams provide deep operational knowledge, long-term commitment, and lower recurring costs.For most Singaporean businesses, a hybrid model offers the best solution—allowing companies to build internal capabilities while leveraging consultants for complex challenges. By making an informed decision, companies can enhance strategic planning, boost resilience, and drive sustainable growth in Singapore’s evolving business landscape.
