Consultants:

A person who acts as an advisor to users or to the technical staff. Consultants are available for all aspects of the computer industry, including electronic circuit design, information systems analysis and software development. In a business environment, consultants are often used to create the functional specifications from which vendors can respond. Consultants typically come from third party consulting firms, but the title is also used for internal specialists. A consultant is an individual who possesses special knowledge or skills and provides that expertise to a client for a fee. Consultants help all sorts of businesses find and implement solutions to a wide variety of problems, including those related to business startup, marketing, manufacturing, strategy, organization structure, environmental compliance, health and safety, technology, and communications. Some consultants are self-employed, independent contractors who offer specialized skills in a certain field; other consultants work for large consulting firms, such as Anderson Consulting or Gemini Consulting,
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About Consultancy:

The consulting industry has grown rapidly since its origins in the 1960s. In fact, Business Week reported that the ten largest consulting firms in the United States averaged growth of 10 percent annually in the late 1990s and achieved 14percent growth in 2000. Several factors have contributed to the growth of consulting. First, as a result of the trend toward corporate downsizing, many companies have found that they lack the internal manpower to complete all necessary tasks. Second, the complexity of today's business climate—as a result of deregulation, globalization, and technology advancements—has outpaced many companies' level of expertise. Finally, consultants provide a way for companies to get special projects done without adding employees to the payroll. Consultant is not himself employed with his client, but instead is in business for himself or for a consultancy firm, usually with multiple and changing clients. Thus, his clients have access to deeper levels of expertise than would be feasible for them to retain in-house, especially if the speciality is needed comparatively rarely.

The decision to hire a consultant is not one that a small business should take lightly. Consultants can be very expensive, although their expertise can prove invaluable. The small business owner must first decide whether the situation facing the company requires the input of a consultant.
 

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  Consultants work:

Consultant provides expertise to clients who require a particular type of knowledge or service for a specific period of time, thus providing an economy to the client. In other situations, companies implementing a major project may need additional experienced staff to assist with increased work during that period. More recently the term is also used somewhat euphemistically for temporary staff. That resource is only temporarily employed by a company to augment the company's core set of employees without providing any unique expertise. This usually indicates that the consultant could be expended when demand for that particular skill diminishes, though this expendability is sometimes recompensed with higher pay. The consultant is usually employed through a limited company which they themselves own, or through an umbrella company.

Strategy consultants are common in upper management in many industries. There are also independent consultants who act as interim executives with decision-making power under corporate policies or statutes. They may sit on specially constituted boards or committees.
   
 
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