Why Vendor Services Deliver More Value Than External Consulting

Nucleus Research finds vendor services deliver higher ROI, shorter payback, and lower costs than third-party consulting across 70+ technology projects.

How does external consulting impact ROI in technology projects?

Projects using third-party consulting averaged 204% ROI, compared to 382% for those without external consultants—nearly a 50% decline in financial return.

What effect does consulting spend have on payback period?

Time-to-value more than doubled, from seven months to over 14 months when consulting services were heavily involved, reflecting slower deployments and added complexity.

How strongly is consulting spend correlated with weaker performance?

Consulting cost share showed a negative correlation with ROI (–0.27) and a positive correlation with payback (+0.42). Every 10% increase in consulting spend reduced ROI by 92%.

Why do consultant-led projects underperform compared to vendor services?

Misaligned incentives, outdated product familiarity, and fragmented accountability increase costs, disrupt timelines, and reduce adoption—eroding long-term project value.

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