IT Consulting vs. McKinsey, BCG, Bain (MBB) - What are differences and similarities?
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- เผยแพร่เมื่อ 19 มิ.ย. 2024
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Are you interested in a career in consulting but are not sure whether to join IT consulting or an MBB firm? MBB stands for McKinsey, BCG and Bain, the top 3 leading management consulting firms. There are many more IT consulting firms, some examples include Accenture, Capgemini and IBM. Both consulting paths come with advantages and disadvantages, it is important to understand what is right for you to kick-start your consulting career. In this video, I talk about the differences and similarities of working in IT consulting vs. McKinsey, BCG, Bain. Do you want to get into consulting, or do you want to get into it consulting like Accenture or Capgemini? This video will provide helpful insights, also to understand what the day in the life of a consultant and specifically an MBB consultant looks like. Watch this video for strategy consulting insights.
Chapters
00:00 Introduction
01:51 Team size
03:31 Duration of projects
05:29 Skillshare
06:49 Type of work
08:03 Background of colleagues
09:10 Lifestyle and benefits
10:36 Wrap-up
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Hey, would really benefit from Development sector consulting services video. Which are the big players in this field? What is the type of work?
Heinrich, I dont need SkillShare right now but I love your promotion of high quality sponsors of FirmLearning. I always check out your sponsors because I know you introduce us to the best-of-beed leaders in any field!!
How do you make the switch from IT consulting to Management consulting?
Du machst wirklich einen absurd guten Job und schaffst es irgendwie, genau die Videos bereitzustellen, die meine Karrierefragen beantworten. Danke.
Hi David, vielen Dank für deine liebe Nachricht, hat mich sehr gefreut. Immer schön zu hören, wenn die Videos hilfreich sind :) LG! Heinrich
As a technology consultant at Accenture, I found this interesting! Thank you! I think it depends on where you are in IT consulting because a lot of my projects have been team sizes as small as 3 people to as large as 30 people (being my biggest). Depends on how niche the project is in which they only really need a subset of specialized consultants.
Hi Christine, thank you for sharing your experiences from Accenture. Trust this will be helpful to others reading the comments - much appreciated! Best, Heinrich
Thanks for sharing these observations!
Great video as always, Heinrich! Excited for the time management video :)
Thanks Brendan :) Time mamangement video will come (though probably not directly in the next weeks). Best! Heinrich
Henrich, great comparison!! I’d also highlight that there are purely strategy/management focused groups at Accenture or other tech consulting firms like Deloitte/EY etc. While the main revenue comes from execution, defining strategies is a core deliverable at large consulting firms as well! Then public vs. private company carries a lot of differences as well.
Hi Ben, yes agree you are right! Indeed eg. the Accenture Strategy team was not what I meant when discussing IT consulting. These teams run more like typical strategy consulting teams. Best! Heinrich
Thanks for the information. Will love to make a transition from IT consulting to MBB consulting for new challenges. 👍
Great! Lots of success to you for this goal :) All the best - Heinrich
Got the free trial, thank you!
Early bird :) Hope you will like it! Best, Heinrich
Another great video. I agree that IT Consulting is becoming more strategic with many more projects ending at the proof of concept. In my early career most projects were based around defining the problem, solving the problem and implementation of the solution. All stages completed by a single project team.
As IT has become more diverse project teams have also become more specialised.
Hi Derran, thank you for watching and sharing your experiences. Much appreciated! Best, Heinrich
great content and insight as usual - thanks! :)
Thanks, appreciate it!! Best, Heinrich
Thanks for the video! It would be interesting hearing your perspective of the differences between working for a company on internal consulting area and being an external consultant. Regards!
Hi Tiago, thank you for your comment. Interesting topic, might pick this up for a future video! Best, Heinrich
This was quite an informative video. Thank you.
Do you have a video on how to switch career to go to work at a Management Consulting firm? If note, please make such a video.
Thanks for the video!
Sure thing, thank YOU for watching! Best, Heinrich
Would just note that when I was at Accenture Strategy my teams were about 2-6 and duration was 6-12 weeks. So it depends where in the company you work in (e.g. strategy, implementation, operations)
Hi Heinrich, thank you for the video. I saw someone already pointed it out but I would find it really helpful if you could post a video about Accenture Strategy vs. MBB for a career start (similarities and differences, your advice, etc.).
Thank you and great content!
Hi Giulia, thanks for the feedback! Yes, might pick this up in a future video :) Thanks for watching! Best, Heinrich
Great video again!
Thank you!! :)
Early notifications gangggg 🙌🏾🙌🏾
Love it - thank you!! :) Heinrich
My experience as IT consultant is bit different on point #1 and #5. Team size is 2-3 people with occasional task assigned to 1-2 support people. Beside Audit i've never seen in my company team larger than 4-5 people. Working with this team size is quite challenging but you soon realize how many different things you've learned in only 6 months for example. Worklife balance for it consultant in small team is less than 0. With covid-19 i spent a lot of weeks the following routine: wake up, work, eat, sleep and repeate. Nice video Heinrich. Looking forward to the next one.
Thanks for sharing your experiences! Do you want to share where you work / is it one of the large players or a boutique IT firm? Great insights, thanks! Best, Heinrich
@@FirmLearning sure. I work for EY Italy. Technology transformation service line. Many of my fellow master collegues work for IT companies (big4 and system integrators). Their situation is more or less the same. The thing that sometimes change is how many € you get for overtime hours at the end of the month. In my year and an half i got 0€ extra. Deloitte and Engineering usually concede some bonus once every 3-4 months. PwC is heavily investing in the consultant workstation so you can spend 4-500€ on top of your bonuses to buy a nice comfy chair, lights, 2nd/3rd screen etc. Again this is Italy. A drop in the ocean.
@@yomikmc Looking back, would you sat it was worth it having no balance in life?
@@marcom.carioba8776 complicated question. 70% Not, 30% Yes. Sometimes it's a 30 Not 70 yes. My goal was 5 yrs of consulting and then re-evaluate. Im 3yrs in. It's complicated and it's becoming harder and harder (i'm peaking week after week in terms of responsabilities and assignments) but it's too late to quit. It will be a 5yrs journey and then, with that experience and an MBA in my bag i will decide to hold the break, quit or whatever..
Comparing IT consulting (e.g. ACN Technology) to Management consulting is quite apples to oranges.
It would be interesting to many students to hear your take on (how difficult to get in, types of projects, long term career prospects, etc.) McKinsey, BCG, Bain vs. Strategy consulting practice of IT Consulting companies
Hi Jani, thanks for watching and the video suggestion! Yes, trust talking about differences among strategy consulting firms is an interesting topic as well. Will pick this up in future videos! Best, Heinrich
Sounds fairly accurate of IT Consulting. I’ve been on my current project for almost 2 years however previous assignments have averaged several months.
Thanks for sharing your situation! Best, Heinrich
I work at accenture strategy:
- Never worked on an implementation or something IT-focused
- All projects between 1-3 months
- Largest team size was 5
- 80% of the time work late ... :'(
Not sure I am ticking you're IT consulting boxes haha
Hey! Would not consider Accenture Strategy as IT Consulting :) Believe they are rather comparable to the Strategy Consulting firms. More talking about ACN Technology and Management Consulting. Best! H
@@FirmLearning My bad! Never quite understood at what department of Accenture you did your internship, as it is of course an immense company... Great video's!
Hey! Could we have a video with book recommendations for aspiring consultants?
Hi Alex, check out the link with my book recommendations in the video description :) But yes, might make a video about this in the future! Best, Heinrich
Love the video
Thank you! :) Best, Heinrich
I work for one of the top 5 IT Consulting firms and previously worked for a competitor. Team size does vary depending on the project so it can be 1-50+. However, most of my projects have been around 10-15 people and I work in IT Architecture mostly in the early design phase. Hours vary also and this will depend on the type of project and what stage in the lifecycle it is. For example, put systems or solutions live can mean long hours testing and implementing and this can mean early starts and very very late finishes. The hotel living and travelling is both a positive and negative - you just have to get used to it I'm afraid.
Hi Scott, thank you for sharing your experiences. Trust this will be helpful for many people here in the community thinking about joining IT consulting. Much appreciated! Best, Heinrich
@@FirmLearning Hi Heinrich, glad I could provide some insight. IT Consulting is a great career so I really hope people in this community consider it. Great channel, keep up the good work.
Hello Heinrich, thanks to continue sharing all these pills!
I have been working in IT consulting for two years now and I agree with all your considerations.
What would you suggest to make a transition from IT consulting (BA functional role) to management consulting? What it would be fundamental to focus on? (In addition to business case preparation)
Thanks a lot and happy new year!
Hi, thanks for your question! One major thing you could do is using an MBA to do the transition. Without an MBA, trust it will be possible as well. Try to not do too many super tech-y projects but more conceptual / managerial projects as well. If you can showcase your work as being more strategic / conceptual within the spectrum of IT consulting, trust this will make the transition easier. Best! Heinrich
Hello Heinrich,
First of all thank you for your incredible content. I really enjoy every of your videos. However, I have a question: Which career path would you recommend to somebody who wants to experience challenging and varying tasks like at MBB but did not make the hiring process?
Than you! Philipp
Hi Philipp, thanks for your question! If you still want to do consulting, I would look into Tier2 firms (Strategy&, OW, RB etc.) - trust these will still give you a great experience. If you are interested in Finance, a role in investment banking might be interesting as well. Founding a start-up will for sure also be a challenging and rewarding experience. All the best to you!! Heinrich
I think we're working to live not other way around. People can adapt to everything, it's true but I am sure having that kind of life-balance like in those consulting companies will backfire one day. Especially that the most valuable asset that we have is time and health, not money. And seems like those people are trading both, for money that they will have to use later to get health back. Sadly it's much more complicated to buy back time, especially the valuable past one. However, all the best to you Heinrich, keep up the good work sharing your skills and I hope nowdays you have some time for yourself to enjoy as well :)!
Absolutely spot on, can see where you are coming from. Thanks for sharing! Best, Heinrich
Can you make a video specifically focused on Accenture Strategy vs MBB? do you believe the do real "strategy" work and what is "real strategy" in your definition. Being at Accenture some people say we didn't do real strategy so wanted to get your thoughts.
Hi Lazaro, thank you for your comment! Yes, might talk more about the strategy arms of the Big 4 and IT consulting in a future video! :) Best, Heinrich
Great video! Question: how much finance/accounting knowledge do you think is good/required for MBB associate level?
Hi Patrik, have seen many colleagues getting away with very little finance/accounting knowledge. I do believe it is valuable though and it can seriously undermine your credibility if a client catches you off guard. Therefore understanding accounting basics (difference between OPEX and CAPEX, how are both affecting P&L and balance sheet etc.) is highly recommended. Best, Heinrich
another great comparison and summary. Could you talk about firm specific differences between MBB the same you have talked about industry specific differences? Also I have been reading about Private equity as an industry, but frim level info remains scarce. Suggested comparison for next videos:
1. The Blackstone Group Inc.
2. Neuberger Berman Group LLC
3. Apollo Global Management Inc.
4. The Carlyle Group Inc.
5. KKR & Co. Inc.
6. Bain Capital LP
7. CVC Capital Partners
8. Warburg Pincus LLC
9. Vista Equity Partners
10. EQT AB
firm specific information about lifestyle, working hours, culture, type of specialization, compensation, structure of hierarchy is what I am looking for. I know it's not your niche but I believe you probably have the contacts to enlighten us in this regard.
Hi Chulbul, thanks for watching and your video suggestion regarding PE! For sure an interesting sector to talk about. Might pick this up in a future video! Best, Heinrich
Hey Heinrich! Really insightful video :)
I would be joining Accenture Strategy's Management Consulting practice in some months. Is the practice in lines with MBB and other mgt consulting firms, or more similar to its IT consulting counterpart.
Hi Rishav, would indeed rather compare Accenture Strategy with other strategy consulting forms and not so much with IT consulting. Best and lots of success at Accenture!! Heinrich
@@FirmLearning Thank You so much! Your videos have helped me a lot in terms of learning about consulting, and preparing for interviews.
An MBB is great initial experience, but when you compare the hours and wages, you make very little money initially. Pulling 80 plus hours per week plus travel time, at $125K salary, puts you down to $62K without travel time(flights, to and from airports, car rentals, etc).
Hi Vincent, thanks for your comment. Indeed agree that these jobs do not look well on a "per hour salary" comparison, especially on the junior levels. Though of course there are other good reasons for such a career ;) Best, H
Thank you for your great video as always. i have an question. What types of company you to work for a Software Engineer at Accenture or Big Ecommerce comapny?
Depends on your interests / whether you want to become a consultant or rather work in-house for a company :) Best! H
Can you please talk about how you track your billable time and invoice your clients?
Hi Delon, thank you interesting topic! Might pick this up in a future video! Best, Heinrich
Thanks for this helpful video!
I am a Junior IT-Consultant considering to step up into Management Consultancy.
Do you think that 1 year in IT-Consulting gives me a higher chance to get into MBB (/ Accenture Strategy) ?
Is Business Informatics a good study background to get there?
Hi Piet, do not necessarily think that spending time in IT consulting will help you for MBB. If you want to switch, would probably do it now. Yes, that background works! Best! Heinrich
Really insightful video. Can you suggest some course or certification that I can do to be able to do SAP implementation?
Hi Sayantan, frankly not super knowledgeable what the most important certifications for SAP work are. Probably would start researching whether there are any official certifications that SAP is offering. Though trust that lots of the learning will also happen on the job. Best! Heinrich
@@FirmLearning thank you so much.
@@FirmLearning In your opinion what can courses or certification can I take as skill development. I am going to graduate with masters in management to increase my chances of getting in a MBB firm?
Thanks for your informative videos. I commented this on one of your videos before I would like to hear your take about chances of a non-business PhD in consulting. E.g PhD Plant Molecular Biology. Thanks.
Hi Tolu, yes this will absolutely be possible, at least for the big MBB firms. People with STEM PhDs get hired all the time (if the rest of the profile meets the criteria). Best! H
Hello Heinrich love your videos ❤️ but i wanna ask can a undergrad with a Computer science degree get into these MBB or big 4 companies or MBA is a must.
Thanks in advance
Hi Rishabh, yes definitely. In general, MBB firms hire people from all degrees. Most people either have a business or a STEM degree. If the rest of your profile meets the criteria, this will be possible! Best, Heinrich
Hi, would you consider consulting firms specialized in digital transformation as IT consulting or strategy consulting ? It seems like strategy consulting firms also have their digital branches (I think of BCG Digital Ventures and Digital McKinsey).
Thank you very much !
Hi Lionel, this is indeed correct and of course the lines are fluid / hard to make clear distinctions. At McK, what most closely resembles IT consulting is their BTO (Business Technology Office). BCG DV and McK Digital is more about digital business building, digital marketing and strategy, this is not necessarily the core business of companies like Accenture and Capgemini. Best! Heinrich
@@FirmLearning thank you very much ! I really appreciate it. It’s much more clear now. Best !
The money you earn as an IT Consultant depends on your specialty. The things that are hard to understand and implement will be done by people who get paid very handsomely.Other tasks such as using Setting a BI dashboard or whatever is actually quite easy to learn especially when all the data sources are already set up so I expect the consultants or analysts assigned to this task to be earning less.
Hi, thanks for sharing. Yes, agree that specialty IT skills can get you a very high compensation / potentially much higher than MBB consultants. Good point. Best, H
Great video! I really enjoy your content
@Atioar From your understanding, which IT specialty(s) make the most money?
@@wavedba SAP specialists can earn enormous salaries. Also, IT security experts are paid very well
When considering an MSc Finance what is the top 3 European (EU/UK/CH) universities that open the doors to most of the high paying jobs? Would you recommend an mba over a Msc Finance? When would you recommend the one over the other? And at what age does it stop making sense to consider a MSc Finance?
Hi, in general you do the mba only post-experience with an average of 4-5 years of work experience. Finance Master is usually done directly after your undergrad. Strong programs in Europe for finance master are LSE and HEC. Best! H
HEINRICH :) do you have advice on PSG? I have an interview with McKinsey 😉
Hi, do not believe super specific preparation is needed for that. Prepare based on the information available on the internet. If you really want to spend more time on it, use the GMAT Integrated Reasoning prep material to further improve. Best! Heinrich
Interested in Accenture
What's the best way to transition from IT consulting to MBB without getting an MBA? Could market research be a good pit stop before moving on to MMB from IT consulting
Hi Suseel, no do not think that market research will help you (rather the contrary). Make sure to frame your experience as rather conceptual and strategic instead of technical. This will maximize your chances. Best! Heinrich
Hi, What are your thoughts on Infosys Consulting? I got an offer for an AI and Automation consultant but I am not sure.
Hi Rachit, based on what I know, Infosys for sure is a leading IT consulting firm. Cannot judge the work conditions / opportunities for new graduates working there though. Lots of success to you!! Heinrich
Hello!
Is the selection process in MBB Digital is different from "usual" consulting for entry roles?
Hi! There are many different roles in MBB Digital (from consultant to developer). For consultant, the process will be similar to the generalist one, cases will likely focus on Digital topics. Best! Heinrich
@@FirmLearning thank you so much!
Lovely
Thanks Zehbing!! Best, Heinrich
Hi. I am a great fan of your videos. They are really informative. I am starting my career (post MIM degree) at a Big4 firm for oracle ERP consulting. Can you guide me how can I make a switch to VC or Strategy Roles in a startup? Should I use product management job as a pit stop before going there ?
Hi Aayush, will be key to collect some relevant experiences in that direction. Maybe you have an opportunity to occasionally also do a project in another area at your Big 4 firm? Lots of success to you! Best, H
@@FirmLearning thanks for the reply. the firm told us that after 18 months we can shift to a different competency within the firm. I will try my best to get into the strategy consulting division or the Deals Advisory one since I feel these 2 might give me better exits.
How do I prepare for IT-Consulting? Are there books to read, hard skills to learn in order to do the job well?
Hi Maximilian, if you really want to work on the technical side, learning the specific tech skill would of course be helpful :) The rest is general consulting skills (communication, Excel / PowerPoint etc.) Best! Heinrich
Why do you think salaries for MBB are higher compared to IT consulting?
Considering how high the salaries at big tech companies are I'm quite surprised to hear that pay in IT consulting is lower...
Hi, the MBB firms are very vocal about at least having the ambition to hire the very best people regarding academic performance, extracurriculars, relevant experience etc. To be able to get the best people, they also need to pay high salaries to attract this talent. In addition, MBB firms usually have significantly higher Per Diems than technology consulting firms, therefore higher margins to pay higher salaries. Best, Heinrich
@@FirmLearning Oh I see then it's all about what kind of employees they want to attract. Thanks for the perspective.👍
You are in a different room today without the books behind you :)
Hi Alistair, yes! This is my place in Munich. Still not really satisfied with the setup, will need to further improve it..! Best, Heinrich
BI stands for Business Intelligence - not Business Information. ;-)
Trust you are right ;) Best, H
Man erkennt sofort einen Deutschen der Englisch spricht 🤣 Trotzdem super Video und sehr Informativ. Danke dir für die Infos.
Dear Heinrich,
first of all I want to thank you very much for your content, its providing some very usefull insights
and career tips.
Although i would like to ask some questions regarding to the topics you mentioned in your videos just to clarify.
As far as it is visible from the public available information you are a CTO in the company which is probably being owned by your own family over a few generations (given the possible fact, that your last name is also presented in the official name of the company).
I dont doubt your leadership and digital transformation skills, but i wounder how would your describe your chanses "to get that job" without being a part of the owning family (if the stated above is true)?
Is a CTO position in a comparable company a typical "exit case" for managing consultants from MBB firms, given that they have got skills and work experience comparable with yours?
As it visible from the media, the company suffered a balance sheet loss in 2018. Afterwards some part of the company assets were sold in order to invest the resulting liquidity into digitalization (announced in 2019), creating a demand for a digitalization expertize.
Regarding to the high saving rate, which you described in one of the videos. It is possible, that you are a member of an extremely wealthy, well respected and most important very good educated family here in Germany, which owns some businesses and art collections over generations, and is in a constant dialog with some high ranked politicians. It could be considered, that someone with possibly yours background might make use of the family material and immaterial assets, like living in a family owned property paying a rent below the market rate, or making vacation on the family owned sites or using family owned vehicles, or using familys connections.
Is this rate acheivable without any "pre-owned" wealth, living in a big german city like yours and having an entry level MBB consultant salary ( withoud any mortages or debts)?
How would you describe the impact of the familys background on the career chances of a young proffesional?
I want to apologize to you, if some of my questions might sound inapropriate, I am just curious and I have no any other
options to ask someone else.
With all the respect
Alex
P.S.
Disclaimer
All the information displayed above was gathered using only publicly available sources.
This information could also be completely wrong! I do not insist on any of the facts stated above! If the facts are partialy or completely wrong, I want to bring my deepest apologies to everyone who felt offended by them.
Hi Alex,
Thanks for your comment. Wow, you really did some research ;)
It is correct that I currently work for our family business (also talked about this several times on my Instagram). You are also correct that the company is currently in a distressed situation, which was also one of the main reasons that I stepped in at that specific point in time. As this situation is still ongoing with many legal implications surrounding it, I cannot further comment.
Regarding exit opportunities, the size of the company will be much more important than the specific job title. It is of course much more difficult (and not realistic for an MBB consultant/project lead) to become the CTO of a bluechip company (Dax, S&P500 etc.), compared to a start-up. My current employer is a SME business in Germany. Several years ago we already had another board-level person (CSO) who joined the business with a consulting background of similar tenure, therefore yes I believe it is realistic for other people as well.
Regarding your other comments on my financial situation - since I started working I did not receive financial support from my family. Therefore yes, the savings rate I talked about (during consulting or now) is based on my own income. Indeed I believe many of my peers achieve similar savings rates, of course it helps to be in a career that pays high salaries like consulting. While I find your description of my family exaggerated, I am grateful for the education and all other privileges that I received during my childhood and upbringing from my family. All of this for sure positively impacted my life.
Hope this clarifies.
Best, Heinrich
Sieh zu Heinrich. Zeit ist Geld :D
Video kommt am Samstag wie immer :) LG! Heinrich
Business consultants invent the problems, IT consultants solve them.
Hi Martin, trust these statements often have some kernel of truth in them ;) Best, Heinrich
Savage but true in some sense loll
I am studying in 3rd Year Civil Engineering.
Can I get into management consulting?
Hi Abhijeet, yes absolutely! People with engineering backgrounds can definitely get in, in general STEM profiles are quite good for consulting. Best! Heinrich
@@FirmLearning thank you.
Hello Heinrich,
I would really appreciate if you could review my profile on LinkedIn and give me a feedback. I am not able to text you it's blocked. How could I reach you?
Need some advice on career transition.
Hi Nigel, best to write me a DM on Instagram with your questions!! (@firmlearning) please note that I do not do full CV reviews anymore due to the amount of requests. Best!! Heinrich
08:07 everybody in IT Consulting knows Accidenture is messing up so many projects sweeping in some super Senior Consultants in the beginning of projects and then only juniors/fresh hires will follow 💩 dont get fooled
;) Thanks for watching! Best, H
Woow woow 😍💋 💝💖❤️
Thanks for watching!
In the IT consulting world Accenture is considered the incarnation of pure corporate evil lol
That sounds a bit exaggerated ;) Thanks for watching Giovanni! Best, Heinrich
@@FirmLearning Thank you for the amazing videos! They're massively helpful and interesting
This was quite an informative video. Thank you.
Do you have a video on how to switch career to go to work at a Management Consulting firm? If note, please make such a video.