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I would caution comparing IBM to McKinsey. Very different DNA. Also, vs Accenture\Deloitte there is a big difference in that the two don't have their own produc

I would caution comparing IBM to McKinsey. Very different DNA. Also, vs Accenture\Deloitte there is a big difference in that the two don't have their own products to push into boxes in component diagrams - IBM does and execs know it. This puts it very much at a disadvantage. Accenture, Deloitte & IBM are considered Tier 2. The BMW, Mercedes, Audi if you will. McKinsey, Bain, BCG are Tier 1. The Lamborghini, Ferrari, Aston Martin, etc. Tier 2 do their darndest to get into Tier 1 but the nature of the work is very different and the chasm between tiers is hard to cross just like in the car industry. Source: I've done extensive work in both tiers.

mensetmanusman 6y ago
McKinsey just lost their schedule contracts with the feds: https://federalnewsnetwork.com/acquisition-policy/2020/05/gsa-terminates-mckinsey-co-s-schedule-contract/ https://federalnewsnetwork.com/acquisition-policy/2020/05/gs...
Aeolun 6y ago
Probably depends on location? I’ve never heard of Bain or BCG.
- wegs 6y ago
  Nope. McKinsey, Bain, and BCG are the tier 1 everywhere. McKinsey is by far the biggest and best-known, but it's like MIT and Caltech. One is bigger, and one is smaller. The smaller is less well-known, but it's no worse. In this case, the smaller companies are, if anything, slightly higher-end (more boutique). I'm not actually sure the Tier 2 are trying to become Tier 1. It's like comparing Walmart to Tiffany & Co. They're very different business models, but upscale doesn't necessarily beat mass market.
pmart123 6y ago
I would say the model has changed from selling your own software explicitly to writing most of the software (glueing systems+customizations) for Client 1, and reusing most of it when Client 2 roughly asks for the same thing. What about EPAM Systems btw?
wenc 6y ago
Just curious, as an industry outsider -- what do MBB do that make them Tier 1? My experience is the Tier 2 vendors you've listed are more tactical, and typically handle execution (outsourcing etc.). Whereas MBB are more strategic, C-Suite, but the value-add may or may not be significantly different from the former.
- hestefisk 6y ago
  Price point, access, quality of analysts.

mensetmanusman 6y ago

McKinsey just lost their schedule contracts with the feds: https://federalnewsnetwork.com/acquisition-policy/2020/05/gsa-terminates-mckinsey-co-s-schedule-contract/ https://federalnewsnetwork.com/acquisition-policy/2020/05/gs...

Aeolun 6y ago

Probably depends on location? I’ve never heard of Bain or BCG.

wegs 6y ago
Nope. McKinsey, Bain, and BCG are the tier 1 everywhere. McKinsey is by far the biggest and best-known, but it's like MIT and Caltech. One is bigger, and one is smaller. The smaller is less well-known, but it's no worse. In this case, the smaller companies are, if anything, slightly higher-end (more boutique). I'm not actually sure the Tier 2 are trying to become Tier 1. It's like comparing Walmart to Tiffany & Co. They're very different business models, but upscale doesn't necessarily beat mass market.

pmart123 6y ago

I would say the model has changed from selling your own software explicitly to writing most of the software (glueing systems+customizations) for Client 1, and reusing most of it when Client 2 roughly asks for the same thing. What about EPAM Systems btw?

wenc 6y ago

Just curious, as an industry outsider -- what do MBB do that make them Tier 1? My experience is the Tier 2 vendors you've listed are more tactical, and typically handle execution (outsourcing etc.). Whereas MBB are more strategic, C-Suite, but the value-add may or may not be significantly different from the former.

hestefisk 6y ago
Price point, access, quality of analysts.