External consultants may be at a disadvantage because they come from outside and don't know the organization. External consultants are mainly concerned with large-scale operations and when in-depth knowledge of the situation is needed. It can be considered a neutral and independent solution to the problem. External consultants may be at a disadvantage because they come from abroad and don't know the organization.
A disadvantage of consulting is that consultants often lack knowledge about internal procedures. This can lead to labor disputes, since your mode of operation can affect the workflow of your regular employees. Generally, you have limited control over independent contractors; they are only guided by what is detailed in the contract. The sole purpose of external consultants is to present innovative ideas to help companies, while internal consultants are the same people who work in the company.
On top of that, outside consultants never call first if issues are securely resolved by internal consultants. In addition, those interested in pursuing a consulting career should also understand the nuances that exist between internal and external consultants. Even if you already have an in-house consulting team, you can work with outside consulting firms when needed. Instead, external consultants are hired for the sole purpose of taking advantage of their experience and capacity to generate change for a specific business problem.
In a way, external consultants succeed over internal consultants when it comes to taking the last possible steps to recover a huge loss or prevent the company from closing. If you run a multinational company, one of the disadvantages of consulting is that hiring consultants in foreign countries can be a challenge due to language difficulties and cultural differences, so additional resources are required to ensure productive participation. The decision to hire full-time internal consultants or to work with external consulting firms on a project basis is based on several factors, including cost, the experience required, the availability of resources, the urgency, and the credibility of the internal company. Now, in terms of price, choosing in-house consulting will be beneficial, as it is less expensive compared to external consulting.
While internal consultants may not be able to see beyond the company's immediate needs, external consultants can prepare the company for the foreseeable future.