Many of these consultancies operate as managed services. This involves the transfer of daily tasks and management of IT systems to a third-party service provider. The aim here is to increase the efficiency of your organization. The service provider is accountable to your organization, which retains control and ownership of the system. This type of transaction is known as business process outsourcing. It has grown in importance thanks to the widespread use of IT systems in most industry sectors.

There are two main categories for IT consulting services:

•#Professional services companies that have a large staff of consultants and experts to assign to your project for a fee. Billing can be by the hour or by the deliverable results. Increasing numbers of their consultants come from developing nations such as India and the Philippines. This is because of the comparative cost advantage for the services firm. And this can translate into savings that are passed on to your organization.

•#Recruitment firms that temporarily staff your organization with an appropriate expert in IT, as per your requirements. These firms may also use the cost advantages of bringing in technology workers from nations with lower pay scales. These service providers typically have time-based fees, which are based on daily or hourly rates.

There are also independent technologists, which can provide expert consultancy based on in-depth knowledge and expertise in a particular niche. This type of consultant acts as a hybrid between the other two main types, providing customized solutions and support, and often working in-house for long periods.