Is There a “Shift Change” in IT Consulting?

Every once in a while, there’s a major shift in our industry, typified by a large number of people leaving the industry, or at least giving up on independent IT consulting. Some retire. Some just walk away. Some allow themselves to be bought out and work for the new company. And some just go get a job.

All of those things are natural, and in small numbers, they happen all the time. The big shift I’m talking about is much larger, and is normally associated with a major change in technology, the economy, or both.

Here are two examples you may have noticed:

1. Windows 2000 and, with it, the introduction of Active Directory in the Windows environment. This was accompanied by boom of Y2K turning into the burst of the doc com bubble. (For some, the killer was not AD but group policies.)
2. Cloud computing, specifically the sudden shift in 2009-2010 after the stock market and housing market crash of October 2008. When the smoke cleared and economy began to straighten out, a lot of companies had moved to the cloud.

I think we’re at the beginning of a third example: The very fast as furious adoption of Artificial Intelligence, accompanied by the rise of massive investment money (mostly private equity and private financing) in our space. This started with vendors but is now moving to MSPs and ITSPs.

Why do I think this is happening now? For one, I meet more and more people who use a phrase I heard a lot in the previous shift changes: “I’m just not going to learn one more new technology.”

Financial uncertainty is nerve-racking. This is especially true for people who are approaching retirement and beginning to realize they’ve lived well off the cash flow of their business, but they haven’t saved for an actual retirement.

Sometimes, it’s also hard to see where money will come from with the new technology. What we used to do has become commonplace and easy. There was a time when Internet connections were complicated and time-consuming. Now they’re easy. There was a time when patch management was complicated and time-consuming. Now it’s automatic.

How will you make money with fast-emerging world of AI? Three factors to consider.

Again and again, we have to learn the new technology, get used to the new economic reality, and restructure our businesses to compete in the new reality. In the big-big picture, this is the same song we’ve heard before. It just seems harder when it’s YOU who are a little older, a little more frustrated, and a little less willing to learn one more technology.

There are three important factors you need to look at to decide what you’ll do. And let’s be real clear about this: If you’re going to leave this industry, make a plan and begin to execute. Once you lose motivation and inspiration, your business’ days are numbers. Move with intention in whichever direction you choose.

The three factors you need to refocus, re-energize, and be more successful in IT consulting moving forward:

Education. You have to learn the new technology. Don’t ignore it. Don’t pretend it doesn’t apply to you. Don’t delay. Especially with AI, the future is coming faster and faster. Make a plan. Execute. Education needs to include you and your staff. In needs to include the technology itself, the business use (strategic) education, and a solid sense of where you company fits in the new picture.

Tend to YOUR business. Don’t worry about “the” economy; worry about your economy. Don’t worry about how others are responding to the frenzy around them. How will your company respond? Take care of your clients. Make sure they rely on you in times of uncertainty. Take care of your employees. Make sure they know you will help them get to the next level in the new reality.

Rely on your community. With luck, that’s NSITSP, but there are many communities. We look forward to working with ASCII, GTIA, Small Biz Thoughts, The Tech Tribe, and a few dozen other communities out there. Each fills a specific role and fills a specific need. More than anything else, the SMB IT community is an actual community. It’s not just national, it’s a global community.

Dive into your communities. Find friends, advisors, subcontractors, and an overwhelming group of people willing to help. Whether you’re trying to solve a technical problem, source some hardware, or find someone to help with a job in another city, your community has what you need. Of course, it works best if you dive in and participate before you need help.

I understand it can be overwhelming. Everyone goes through that. And many of us have gone through it multiple times over the years. Stay educated. Stick to the basics. And rely on your community for support.

Don’t confuse a speed bump with a mountain.

If you’re just plain tired, reach out to people in your community. It might be time to think about getting out. It might also be time to take a day off, get some rest, and put things in perspective. A good talk with a friend, and a good personal recharge of your batteries goes a long way.

Those who know me know that I always emphasize work/life balance. You need to recharge your batteries in order to sustain yourself and your business. Exhaustion builds over time, and it never helps you to make good decisions.

If you need help from this community, post in our forums, or contact me directly. I might not be able to help. But I’ll bet I know people who can.

Hang in there, my friends. With luck, I’ll see you in the reality.

🙂