Consulting Firms Ramp Up Tech Capabilities to Bridge Strategy and Execution
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Top consulting firms are looking to strengthen their technology capabilities as clients are opting for a tech-first mandate demanding to bridge the gap between strategy and technical execution. This would also help them win deals against traditional IT services players.
Lines are increasingly blurring between IT services providers and consulting players, especially the Big 4 – EY, Deloitte, PwC, KPMG. While IT services companies are trying to build strong consulting capabilities, consulting firms are scaling up their tech capabilities.
Most recently, Deloitte has launched the Asia Pacific Agentic AI Centre of Excellence (CoE) located in India, Malaysia and Singapore, marking a significant investment to help organisations across the region harness agentic AI at scale. The CoE brings together over 6,000 practitioners across the Asia Pacific region, supporting a pipeline of AI implementations valued at more than USD 1 billion.
"The launch of the Asia Pacific Agentic AI CoE represents a significant step forward in how we approach human-AI collaboration in India. This centre positions us to help clients reimagine the very nature of work, going beyond automation and efficiency to unlock entirely new sources of value. We are already witnessing a shift from AI being used for incremental enhancements to AI serving as a catalyst for fundamental transformation, enabling businesses to redesign workflows, implement autonomous processes and build more adaptive and responsive operating models. Our focus is to help clients navigate this shift responsibly, building an AI-powered future that is innovative and resilient," said Sathish Gopalaiah, President – Technology & Transformation, Deloitte South Asia.
Deloitte said its CoE offers organisations a powerful combination of deep industry insight and cutting-edge technology to drive meaningful AI transformation. The centre will also enable rapid development and validation of Proof of Concepts (POCs) by providing centralised expertise, reusable tools, and structured methodologies. It will streamline innovation by reducing development time and offering a dedicated environment for experimentation.
Few years ago, Boston Consulting Group (BCG) formally launched its new BCG X division, which focuses on technology design, build and implementation services, bringing together nearly 3,000 professionals worldwide under one roof.
In April this year, BCG X launched a new AI Science Institute leveraging BCG X's expertise and talent, supported by a team of 3,000 experts, to accelerate scientific discovery in collaboration with top R&D teams across leading industries and governments.
Last year, PwC India launched a GenAI Experience Lab in Gurugram marking a significant step in exploring GenAI's transformative capabilities.
The facility aims to give users a first-hand look at how GenAI is reshaping industries. The facility offers an immersive environment where visitors can explore the technology's ability to improve decision-making, streamline operations, and boost productivity. Equipped with advanced hardware, the lab is designed to encourage experimentation, creativity, and collaboration around AI-driven solutions.
Analysts believe IT consulting firms are ramping up their technology capabilities to address rising client demands for comprehensive solutions that go beyond traditional advice. "By investing in advanced areas such as AI, cloud, and cybersecurity, these firms can now offer seamless support from strategy development through to implementation. This shift not only enhances their value proposition but also enables them to deliver innovative solutions at a faster pace, keeping up with the rapid evolution of the digital landscape," said DD Mishra, VP Analyst at Gartner.
"This strategic expansion sets consulting firms apart from conventional IT services providers, who typically focus on execution rather than holistic transformation. By bridging the gap between high-level strategy and technical delivery, consulting firms are winning larger, more influential projects and forging stronger, long-term partnerships with clients. Ultimately, this positions them as indispensable partners in driving digital transformation and business success. Besides, Consulting firms can provide strategic insights and domain knowledge, build a client roadmap, and engage effectively with businesses to address their key business challenges," Mishra added.
The boundaries between consulting and IT services are no longer rigid, concurs Nitika Goel, Managing Partner and CMO, Zinnov. "They are converging at the intersection of technology, strategy, and execution. Consulting firms are scaling up their technology capabilities not to compete head-on with IT services players, but because technology is now core to all businesses. Most clients today are either technology companies or deeply tech-enabled and expect their consulting partners to speak the same language, with the same depth."
This shift is most visible in high-impact areas like automation, GenAI, and digital twin implementations - domains where contextual advisory must pair with deep implementation to unlock real outcomes, said Goyal.
"It's also about driving internal efficiencies, faster value realization, and building execution muscle. This capability stacking mirrors a broader industry trend — forward and backward integration across the value chain to create resilience. While services firms like Accenture and Cognizant have strengthened their consulting arms, consulting firms like Deloitte are now investing in tech COEs to deliver transformation at scale. Ultimately, this is not a story of competition, but convergence," she said.
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