A couple of uses of consultants that I've seen at first hand:
- They helped our company to negotiate the minefield of government R&D tax credits, by interviewing all the developers and assessing how much was R&D compared to the guidelines (which are complicated). I think this was a good use of consultants: You get someone with specialized knowledge, and unless you're an enormous company, you couldn't afford to have someone with this knowledge on staff all the time.
- They ran a survey of our software development practices, which they also ran with many other software companies, and then compared our performance to the other companies. I think if you're a completely useless manager with no idea about software, then this could be good, as it might highlight obvious ways that you could improve your processes. For us, it was a waste of time and money.
The first of these I can see as valid, but it's an optimisation that is only needed because globally, taxation law is a deliberate mine-field deisgned to support consultants. The second is exactly as you read it.
1. Since tax prep is siloed away from development, you don’t know what you don’t know about your company’s tax and regulatory posture. You as a product owner don’t know how it compares with the industry. You don’t know the space of ways it can change.
2. But then, when they find that your development floor looks like everyone else, it’s less than profound. This analysis is most valuable to the outliers; maybe a company that’s merged and bought smaller ones and as a result needs to be told that they’re out of shape.
- They helped our company to negotiate the minefield of government R&D tax credits, by interviewing all the developers and assessing how much was R&D compared to the guidelines (which are complicated). I think this was a good use of consultants: You get someone with specialized knowledge, and unless you're an enormous company, you couldn't afford to have someone with this knowledge on staff all the time.
- They ran a survey of our software development practices, which they also ran with many other software companies, and then compared our performance to the other companies. I think if you're a completely useless manager with no idea about software, then this could be good, as it might highlight obvious ways that you could improve your processes. For us, it was a waste of time and money.