Billionaire consultancies in the spotlight: How the Trump administration is changing the rules of the game

The traditional model of large consultancies is facing one of the greatest challenges in its history. For decades, giants such as Deloitte, Accenture, and other companies in the sector made billions with government contracts, selling expertise, strategy, and sophisticated reporting. But now, that model may be about to fall apart.

The Trump administration, through the General Services Administration (GSA) and the newly created Department of Government Efficiency (DOGE), initiated a massive review of contracts signed with consultancies. The objective is simple and straightforward: to understand why billions of dollars from the federal budget are being spent on consulting services and what actual deliveries these companies offer. The result? A market previously considered untouchable is on high alert.

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A model that stood up without question

For years, the logic of consulting was simple: governments and companies face complex problems, and experienced consultants offer solutions based on deep analysis. In theory, the model makes sense. The problem is that, in practice, many of these solutions boil down to impactful presentations, endless meetings, and diagnoses that differ little from the obvious.

Mariana Mazzucato, economist and author of the book The Big Con, clearly exposes this systemic flaw. According to her, excessive outsourcing for consultancies It is undermining the ability of governments to act as economic and innovative engines. Mazzucato warns that this extreme dependence weakens public institutions, leaving them unable to develop internal knowledge and their own solutions.

The questioning, therefore, is inevitable: Do consultancies really create value or do they just create a dependency that perpetuates their own contracts?

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The billion-dollar review of contracts in the United States

The Trump administration seems to have embraced that criticism and decided to act. The DOGE began to examine in detail government contracts with the world's largest consultancies. Deloitte, for example, has already had more than US$ 219 million in contracts closed, with allegations that the deliveries did not justify the expenses.

Among the main objectives of the review are:

✔ Eliminate contracts that have no real impact.

✔ Reduce the government's dependence on external consultancies.

✔ Direct investments to more efficient solutions, such as technology and automation.

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The immediate impact for the industry's giants

The first signs of this change have already begun to appear. Deloitte, Accenture, and other major consultancies are seeing their federal contracts cut or renegotiated. This represents a significant threat to companies that rely on the public sector as one of their main sources of revenue.

Some movements are already noticeable:

• Deloitte and Accenture are reviewing internal policies to adjust costs and try to minimize the impacts of the cuts.
• Bench time is being reduced — meaning, if a consultant isn't assigned to a project, it can be shut down quickly.
• New government contracts are requiring more transparency about deliveries and success metrics, eliminating space for abstract reporting with no real impact.

For many of these consultancies, losing public contracts doesn't just affect revenue. Credibility and market positioning are also affected, as the government has always been a strategic client to consolidate reputation and attract new businesses.

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Domino effect: what changes for the consulting market?

The United States government may just be starting a movement that will soon expand to other large companies and regulated markets. If a client as significant as the public sector realizes that it can operate without very expensive consultancies, why wouldn't large corporations adopt the same strategy?

There has already been talk of a migration to models based on automation, artificial intelligence and predictive analysis, eliminating intermediaries and making decision-making more efficient.

Companies that traditionally rely on consultancies for risk diagnosis, strategic planning, and regulatory compliance are seeking more agile and accessible alternatives. The GRC (Governance, Risks, and Compliance) market itself is being impacted, with technological solutions that offer instant strategic insights, without the need for an army of consultants analyzing data manually.

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Opportunity or threat? Who can occupy this space?

For some companies, this change represents a huge problem. But for others, it's a unique opportunity to occupy a space that was previously dominated by few traditional players.

Who can benefit from this market turnaround?

• Companies specializing in process automation and artificial intelligence can replace traditional consultancies in data analysis and strategic recommendations.
• Technology startups applied to GRC offer solutions that deliver efficiency without the exorbitant costs of major players.
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What differentiates these new solutions from the traditional model?

✔ Greater transparency: Clear and objective metrics about the real benefits of the solutions offered.

✔ Less red tape: No need for lengthy consulting processes to generate concrete results.

✔ Data-based decisions: Use of artificial intelligence to provide fast and accurate recommendations.

The future of consultancies: Reinvention or extinction?

The message was given: either traditional consultancies deliver more than reports and presentations, or their contracts will continue to shrink.

The move initiated by the Trump administration may be the beginning of an even greater transformation in the professional services sector.

The traditional model, where consultancies are hired to map risks and suggest actions, is being replaced by companies that deliver these insights in a more agile, technological and economic way.

If this trend is consolidated, the future of large consultancies will be at stake. And the question that remains is: will they be able to reinvent themselves before it's too late?

Do you want to know more about how technology can replace traditional consulting?

Talk to a Vennx expert and discover how to transform your GRC strategy through technology and professional expertise.