Companies – The Consulting Report

Challenges Persist in Deloitte’s Role in Medicaid Eligibility Systems Across Multiple States

jirehl — Wed, 17 Jul 2024 12:00:44 +0000

Deloitte, a prominent global consultancy, has faced scrutiny for its pivotal role in managing Medicaid eligibility systems across the United States. With contracts worth billions of dollars, Deloitte is tasked with modernizing state systems designed to determine who qualifies for Medicaid, a crucial lifeline for millions of Americans. However, investigations and audits reveal significant issues plaguing these systems, affecting beneficiaries nationwide.

Reports from state audits and legal filings highlight widespread errors in Deloitte-operated systems, including incorrect eligibility determinations, delayed paperwork, and system failures that disrupt essential services. These problems have resulted in beneficiaries losing coverage, sometimes for extended periods, with serious consequences for their health and well-being. Despite Deloitte's assertion that it works closely with state agencies and that system issues are addressed promptly, critics argue that recurring errors demonstrate systemic flaws that persist across different states. Efforts to address these issues vary by state, with some renegotiating contracts and implementing oversight measures. However, challenges persist as states navigate the complex task of ensuring accurate and reliable Medicaid eligibility determinations amidst increasing enrollment and evolving healthcare needs.

CSO Group and xAmplify Merge to Form Australia’s Largest Cyber Security and AI Consulting Firm

jirehl — Tue, 16 Jul 2024 12:00:43 +0000

With an annual revenue of over $110 million, the combined Sydney-based cyber security consultant CSO Group and Canberra-based automation systems and AI integrator xAmplify have announced a merger, forming Australia's biggest locally-owned agency in the respective fields. With activities consolidated across all states and territories, the new organization—which will be headquartered in Sydney—will have over 160 staff working for more than 110 government and enterprise clients.

The merger, described as a fusion of equals by CSO Group Founder Michael Simkovic, aims to disrupt traditional global service provider models by offering innovative, integrated solutions at the intersection of cyber security, automation, and AI technologies. This strategic alignment not only enhances client capabilities in IT services and sovereign-secure AI technologies but also strengthens Australia's national expertise and sovereign capability in digital transformation. With a focus on delivering value through intelligence and optimization, the merged firm seeks to address evolving client needs amidst increasing cyber threats and the rapid adoption of advanced technologies.

Arthur J. Gallagher & Co. Expands HR Consulting with OperationsInc Acquisition

jirehl — Fri, 12 Jul 2024 12:00:04 +0000

The renowned HR consulting company OperationsInc, situated in Norwalk, Connecticut, has been bought by Arthur J. Gallagher. Founded in 2001, OperationsInc specializes in providing comprehensive consulting and outsourcing services in areas such as people strategy, human resources, payroll, HRIS, talent acquisition, and employee training. With a team of over 150 HR and payroll experts, OperationsInc has served more than 2,000 companies across over 70 industries in the United States and internationally.

Following the acquisition, OperationsInc will continue to operate from its current location, with its experienced team reporting to Steve Coco, Gallagher’s Global Managing Director for HR and compensation consulting. J. Patrick Gallagher, Jr., Chairman and CEO of Arthur J. Gallagher, expressed confidence that integrating OperationsInc’s capabilities will significantly enhance their HR consulting offerings, reinforcing Gallagher’s commitment to expanding its global footprint in employee benefits consulting and brokerage operations.

Consultancies Capitalize on AI Boom as Businesses Seek Guidance

jirehl — Thu, 11 Jul 2024 12:00:08 +0000

Amidst a resurgence reminiscent of the dot-com era, management consulting firms are experiencing a significant uptick in revenue from generative AI-related projects. Companies like Boston Consulting Group, McKinsey & Company, and IBM have pivoted a substantial portion of their operations toward artificial intelligence, responding to a surge in demand from businesses eager to harness AI's potential. For instance, Boston Consulting Group, traditionally focused on strategic consulting, now derives a fifth of its revenue from AI-related work, a stark contrast from just two years ago.

The rapid adoption of generative AI technologies has fueled a flurry of consulting engagements across various sectors. These include developing AI-driven customer support systems, ensuring regulatory compliance for AI deployments, and pioneering AI solutions to optimize business operations. Despite the promise, challenges persist, notably concerning AI's reliability and speed, which can impact customer experience and operational efficiency. Companies like IBM and McKinsey are pioneering solutions while navigating issues such as system inaccuracies and customer acceptance. As businesses navigate this evolving landscape, consulting firms are poised to play a pivotal role in shaping the future of AI integration across industries, despite ongoing challenges and uncertainties.

Survey Highlights Growing Stakeholder Expectations and the Importance of Leadership in Health and Safety Performance

jirehl — Wed, 10 Jul 2024 10:50:59 +0000

Stakeholder expectations for health and safety (H&S) guarantees are rising dramatically, according to a recent ERM study. Over the previous three years, an overwhelming 94% of respondents reported having higher expectations, and 80% believed these demands would only increase. The study, which polled 250 H&S function leaders from a range of industries, focuses on how leadership involvement affects H&S's success. Significantly, leadership participation was cited by 95% of respondents as the best way to promote H&S development, and 34% of respondents said it was essential for improved performance. Nevertheless, only 2% of H&S experts believe they are completely prepared to handle these changing requirements.

The report also underscores the importance of addressing psychosocial risks, with 87% of participants marking it as a growing concern. Despite this, organizations are struggling to keep pace, with many only now beginning to develop strategies and policies to tackle these issues. The lingering effects of the COVID-19 pandemic, coupled with the shift towards remote work, have further complicated the H&S landscape. Increased senior leadership engagement and a better understanding of the business benefits associated with robust H&S strategies are seen as crucial to navigating these challenges and ensuring the psychological well-being of employees.

NFL Partners with Accenture for Technology and Consulting Expertise

jirehl — Tue, 09 Jul 2024 12:00:21 +0000

On May 6, 2024, the National Football League (NFL) and Accenture announced a five-year partnership, naming Accenture as the Official Business and Technology Consulting Partner of the NFL. This partnership aims to leverage Accenture’s technology and data expertise to influence the future of football. NFL Executive Vice President of Sponsorship Management Tracie Rodburg underlined the value of adapting to change and using technology to the game's and its supporters' advantage. Three primary areas—football operations, financial operations, and human resources—will be the focus of the partnership's enhanced data-driven decision-making efforts.

Leading global professional services firm Accenture will use its technical know-how and wealth of industry experience to improve the NFL's corporate and club finance operations, enterprise resource planning, and human resource management. Accenture’s Chief Marketing and Communications Officer, Jill Kramer, highlighted the NFL’s commitment to innovation through AI and data-driven strategies. Noel Winn, Accenture’s client account lead for the NFL, expressed enthusiasm for the opportunity to guide the NFL's future vision and enhance both operational efficiencies and the fan experience. With a global workforce of approximately 742,000 people, Accenture is well-positioned to drive significant technological advancements within the NFL.

EY US Acquires Nuvalence to Enhance AI and Platform Engineering Services

jirehl — Mon, 08 Jul 2024 12:00:12 +0000

In order to expedite the delivery of platform engineering, product development, and generative AI (GenAI) platform-enabled services across numerous sectors, Ernst & Young announced on April 29, 2024, that it would acquire Nuvalence, a technology consultancy. Nuvalence will greatly improve EY US's capacity to create value-driven, AI-enabled solutions. With more than 140 engineers, product managers, and architects from the US, Canada, and Colombia, Nuvalence is an experienced team. Vice Chair of EY Americas Consulting Raj Sharma highlighted the company's enhanced capacity to offer cutting-edge AI platforms and products, realizing customers' AI aspirations.

Nuvalence has a history of using in-depth technical knowledge to tackle challenging issues, empowering businesses to become platform- and AI-centric enterprises. Their work involves, among other things, centralizing digital fleet management, and improving customer interactions across numerous areas. Nuvalence Co-Founders Rakesh Malhotra and Sinclair Schuller expressed their excitement about scaling their mission as part of EY US. This purchase is in line with EY's mission to improve working conditions for all people by using technology and data to support clients' operations, growth, and transformation while promoting long-term value and confidence in the capital markets.

MBB Consulting Firms Face Recruitment Uncertainty Amid Restructuring

jirehl — Fri, 05 Jul 2024 12:00:41 +0000

For fall 2024, there is growing uncertainty in the recruitment picture for MBA candidates looking for jobs at McKinsey, Bain, and Boston Consulting Group.

McKinsey is scaling back its US recruiting efforts, with no full-time offers extended to MBA students from top business schools during the last recruiting cycle, a significant shift from its aggressive hiring spree in 2020-22. The firm has been restructuring its support functions and downsizing its consultant body, evidenced by performance reviews and voluntary departure incentives. McKinsey’s recruitment reduction is in response to flat revenue growth since 2021, leading to a higher number of consultants without client assignments.

Boston Consulting Group and Bain are similarly tightening their hiring strategies. BCG, despite a positive market outlook and a 10% sales growth in Q1 2024, has limited its headcount growth to 6%, focusing more on tech experts due to the burgeoning AI consulting sector. Bain, which expanded its headcount by 50% between 2020 and 2023, is facing more severe challenges. The firm’s revenue per employee is lower compared to its peers, and a decline in private equity deals has exacerbated its overstaffing issues. Consequently, Bain’s recruitment efforts are expected to be minimal in 2024.

KPMG Announces Major Overhaul and Staff Cuts Amid Industry Shift

jirehl — Thu, 04 Jul 2024 12:00:20 +0000

KPMG has unveiled significant changes to its consulting division, aimed at restructuring its operations and adapting to evolving market demands. The firm plans to reduce its senior staff by 200 as part of a cost-saving initiative to reclaim $80 million, with intentions to redirect these savings towards bolstering digital solutions, industry expertise, and innovative delivery methods. This strategic pivot reflects KPMG’s response to declining demand for traditional consulting services, as noted by consulting Managing Partner Paul Howes, who emphasized the need for a transformative shift in business strategy.

This restructuring marks KPMG’s second consecutive year of substantial layoffs, following a similar reduction of 200 roles in 2023, primarily within its consulting sector. The move aligns with broader industry trends, where major firms like PwC, EY, and Deloitte have also undertaken workforce reductions and operational restructuring amidst challenges such as the aftermath of the PwC tax leaks scandal and fluctuating consulting demand post-COVID-19. KPMG aims to mitigate the impact by upskilling 50 employees and reallocating resources to high-demand areas like artificial intelligence, underscoring its commitment to sustainable growth and profitability. The firm expects to finalize the overhaul by August 2024, with affected staff notified by June 21st.

NextGen Fund Consulting: Advancing Institutional Asset Management

jirehl — Fri, 24 May 2024 12:00:41 +0000

NextGen Fund Consulting emerges as a pioneering force in the asset management industry, offering bespoke financial product development consulting services under the leadership of Aisha Hunt. In response to the industry's dynamic landscape, characterized by evolving regulatory frameworks and shifting market demands, the firm specializes in guiding asset managers through the intricate process of launching and nurturing innovative ETF and mutual fund strategies. With a focus on anticipating future trends, NextGen aims to empower institutional asset managers with tailored insights and strategies, positioning them to thrive in today's competitive environment.

Led by Aisha Hunt, whose extensive legal and financial services experience spans over two decades, NextGen distinguishes itself through a combination of deep regulatory expertise and strategic partnerships with leading service providers. The firm's comprehensive suite of services encompasses early-stage product development, launch guidance, conversion and reorganization strategies, and product rationalization initiatives, ensuring asset managers are equipped to capitalize on market opportunities while navigating regulatory complexities. As NextGen Fund Consulting debuts, it represents a pivotal resource for asset managers seeking to drive sustainable growth and stay at the forefront of industry innovation.