Problems and Risks in the Purchasing of Consultancy Services

This article integrates some of the literature relevant to the purchasing of industrial professional services with a view to highlighting the risks and dificulties involved. Many factors con- tribute to increasing the risk involved in the decision, including: the characteristics of services; the high financial risk; the conflict of interest; the length of purchase commitment; organisational risks, the inexperience of decision makers; the conspicuousness of the decision and extent of linked decisions. The decision making process can involve eight stages; problem identification, determining if the problem is to be handled internally or ex- ternally, identifying possible consultants, searching for information about consultants, evaluating consultants, selecting consultants, managing the project and reviewing the consultant's performance. The paper takes the buying process as it main framework and integrates the risks and problems encountered as well as discussing practical ways to overcome them.