Did the “Big-4″ just become the “Big-5″? Time will tell with the latest market consolidation but one thing seems to be clear, there isn’t much room for the midsized player in the consulting and services industry. I have been mulling over what this means specifically to the supply chain consulting market and only one conclusion jumps out at me: this move just made SCM Solutions a stronger player.

Both EDS and HP dabble in the supply chain market but usually as a bundle to much larger deals (like P&G). The merger will have an impact on two components that will ultimately benefit us in the industry: Talent and agility. First, the easiest place to recruit top consulting talent is from the big firms as their HR doctrines require pay scales that benefit the average worker and always underpay the superstars. The best consultants at the new HP/EDS will likely find themselves caught in many layers of bureaucracy and be looking to go independent or join small firms like ours. I know from experience that big company inertia drags top performers down to the mean. The second advantage we will have is agility. This new large firm will be gunning for massive full IT and Business Process services so many of the supply chain specific work won’t be lucrative enough for them to take on - especially ones that require workshops to get started. The engagement process itself will be a limiter for them to jump into midsize deals.

How do we capitalize on this? By doing exactly what Jim Collins suggests: growing at a controlled pace and doubling-down on our core competency of niche supply chain technology and business consulting.