In detail
- Deloitte executive Jason Manstof presented a forecast showing that hour-based consulting work will shrink to a small fraction of the market by 2035, while AI agents grow exponentially.
- McKinsey already derives over 30% of its global fees from outcome-based models instead of hourly billing.
- Consulting firms are experimenting with flat-rate subscriptions and fixed-price solutions, but risk margin erosion on longer projects and cash flow volatility.
Why it matters
For mid-market companies working with consultants, this signals upheaval in pricing models and performance measurement—outcome-based contracts require clear KPIs and carry risks if success metrics are poorly defined.
For you Review your consulting contracts for hidden hourly components and negotiate outcome-based models now to benefit from falling consulting costs.