Accepted Manuscript

Assessing value creation of HR consultants on e-consulting implementation

T. Poorani, S. Thiyagarajan

PII: S0160-791X(17)30276-2
DOI: 10.1016/j.techsoc.2018.07.008
Reference: TIS 1076

To appear in: Technology in Society

Received Date: 23 November 2017

Revised Date: 12 July 2018
Accepted Date: 21 July 2018

Please cite this article as: Poorani T, Thiyagarajan S, Assessing value creation of HR consultants on e-
consulting implementation, Technology in Society (2018), doi: 10.1016/j.techsoc.2018.07.008.

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COVER PAGE:

Title: ASSESSING VALUE CREATION OF HR CONSULTANTS ON e- CONSULTING IMPLEMENTATION

Author: Poorani.T
Visiting Faculty, Department of Management Studies,

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Pondicherry Central University ,Pondicherry – 605014.
Email: poorani.t@gmail.com
Contact No: 09600927699

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Co –author: S. Thiyagarajan
Asst Professor,Department of International Business,
School of Management,Pondicherry Central University,Pondicherry – 605014.

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Email: sthiyags@yahoo.com
Contact No: 04132654713

Preferred Postal Address: No.179,Calve subraya Chetty St. Pondicherry -605001

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About Authors:

Dr. Poorani T has completed Ph.D in the Department of Management Studies, School of
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Management, Pondicherry(Central) University, Pondicherry. She has a Masters in Human

Resource and Marketing (Dual Specialization) from SSN School of Management , Chennai
(affiliated to Anna University).Her interest areas are HR Consulting ,Recruitment , Training and
Development and Talent Management. She has 6 yrs of industry experience and she is also a
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corporate Trainer.
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Dr. S. Thiyagarajan is a Assistant Professor Pondicherry (Central) University. He has more

than 5 years of experience in teaching. He has published more than 50+ articles in reputed
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national and international journals. His area of interest includes, Finance, Operations and
Statistics.
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ASSESSING VALUE CREATION OF HR CONSULTANTS ON e- CONSULTING
IMPLEMENTATION

ABSTRACT

HR Consulting has become inevitable in the current scenario. However, the consultants are
not equipped enough to withstand the demand and serve efficiently and effectively. In the

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current scenario there exist lots of problems in the consulting firm and this paper focuses on,
the advent of e- consulting and the extent to which it has invaded into the industry to provide

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value creation in business for the consultants and also minimize their problems. A stepwise
procedure had been adopted for ensuring the value creation in business of consultants. Firstly,

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the problems in the HR consulting firms were identified. Secondly, various factors of e-
consulting perception that contribute to value creation in business were analyzed. Finally, a
model was developed to check the extent of the contribution of various factors on value

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creation in business after the adoption of e- consulting. The model signifies the minimization
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of problems and enhancement of value creation in business on the advent of e- Consulting.
This study develops a framework to guide and use of best practice as benchmarking on the
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advent of e- consulting implementation. The framework explains how e- Consulting

implementation can be effectively used by the client and consultant to ensure a win-win
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situation for both Consultants and their Client Companies.

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Keywords: HR consulting, e- consulting, outsourcing, value creation, client company,

consultants
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Paper type: Research paper

1. INTRODUCTION:
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HR Consulting Industry- Current scenario:

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Human Resource Outsourcing (HRO) is estimated to reach US$199.6 Billion by

the year 2017, driven by the increasing need for alignment between business operations
and HR, cost reduction, compliance management, understand changing policy
framework and access to key technologies. Various HR functions are outsourced by
companies to Consultants. Surveys show that nearly all organizations have outsourced some
parts of their HR functions to consultants (Gurchiek, 2005). Thus, Consulting is a form of
service that had emerged as a result of outsourcing activity. The human resource
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consulting industry has emerged from mere management consulting and addressing human
resource management tasks and decisions. HR Consultants of today are responsible for
assisting Clients with strategically integrating effective HR processes, programs and practices
into their daily operations.

HR Consultants vs Outsourcing clients -Fish out of the pool:

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Consultants/external partnering has the potential to deliver capability, knowledge
and innovation via the expertise that employees bear, which when bought in by an

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organization, can tremendously reduce the threat experienced (Gurney et al., 2009) and in
many aspects the associated burden of risk can be shifted away from the organization (Cooke

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et al., 2005). The outsourcing need is booming and so is the consulting industry. The value
of a good consultant depends on how he or she adapts to the changes with respect to the
volatile market opportunities (Bernard Marr, 2017) and augments face‐and‐brain time

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with technology (Dan, 2005). Growing problems in HR areas like globalization, increasing
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business needs & recruitment requirements, drastically changing trends that require robust
T&D structure, dynamic recruitment and efficient management of resources available, have
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resulted in the dependence on HR Consultancy. However, the outsourcing companies were

not satisfied with the effectiveness of the service delivery. The critical issues for effectiveness
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of consultancy service focus primarily on the client-consultant relationship and the consulting
engagement process (Appelbaum and Steed, 2005; Bennett and Smith, 2004; Fullerton and
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West, 1996; McLachlin, 1999; Jakki et al., 2011). Thus, companies have started
implementing e- consulting to ensure that they meet the requirements of their clients.
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e- Consulting seen as an elixir for HR Consulting service delivery:

e-Consulting will be based on providing the consulting services through internet to

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businesses, groups and individuals irrespective of their location and to better satisfy the needs
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and expectations of their customers and facilitate full-fledged talent acquisition and talent
development. It will focus on the various challenges that will be faced during each stage of
the business which includes handling of Customer services, processing of the services and
measuring the effectiveness of the services. e-Consulting practices, when adopted by
Consultants can help in carrying out a hassle free business with their Clients. e- Consulting is
a refined form of e- business for delivering consulting service requests. It acts as a platform
to bridge the gap between the Consultants and their Client companies. In most of the cases
the Client companies get the Consultants registered to this platform or website of the
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Consultants to avail their services. The requests are posted to the Consultants via online and
the tracking / processing of requests are also done online.

e-Consulting – the starting trouble:

However, even though many consultants have adopted e- consulting as a tool to meet
their customer demands, many of them neither hold the right perception towards their

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implementation of e- consulting nor do they know the exact focus points of where e-
consulting can be used. This paper thus highlights the importance of e- consulting adoption,

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the focal points and the extent to which it can impact the value creation in business for the
consultants on a long run.

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2. LITERATURE REVIEW:

HR Outsourcing - boon or bane debate:

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In the present context, outsourcing to consultants is being seen as boon or bane
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debate. In terms of reasons for outsourcing different HR processes, cost reduction/cost saving
and getting expertise solutions was found as the most vital reasons (Bob and Philip, 2004;
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Monica Belcourt, 2006) and other specialized services include sharing risk, increasing
productivity (Mihir Dashi et. al, 2012; Sarosh and Aruna, 2010; JoAnn Greco, 1997), speed
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and flexibility (Heiner et.al, 2013). In terms of reasons against outsourcing different HR
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processes, slow resolution times, financial cost to the company, giving rise to quality
problems, slow response time and loss of control featured as dominant reasons against
outsourcing of different HR processes (Heiner et.al, 2013). Thus mixed reviews exist with
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respect to outsourcing and the studies have been carried out in various industrial sectors like
Manufacturing, Telecom, IT and BPO. There are many studies on Management Consultants
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and IT Consultants. However very few studies exist on HR Consultants that describes on the
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competencies required for a consultant to serve their clients well (Robert, 1999; Niels et.al.,
2013; Wei-Chuan Wang, 2002; Ana and Carlos., 2008; Poorani et al., 2015; Stuart, 2010,
Michael Parks, 2000). There is humpty number of challenges faced by consultants.

Challenges faced by Consultants:

The major challenges faced by Consultants include: (i) Establishing the client-
consultant relationship (Andreas and Alexander, 2002; Claude et.al., 2001; Robin Fincham,
1999; R. Lopes da Costa, 2013; Carroll and Ronald, 2006) (ii) Management issues (Taylor
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III, Alex, 1998; David P. Gustafsone et.al., 1973; De-Graft Owusu-Manu, 2012; Ana and
Carlos, 2008). Most of the studies related to consultants are done in US and UK. And there
are only very few studies in Indian Context. On screening the various literatures, it was
evident that service industry related studies had been broadly using 8P’s (Price, Place,
Product, Productivity, Promotion, Process, Physical evidence and People) as parameters to
measure internal problems (Hameed Abdulnabi Al-Debi and Ashraf, 2014; Purashraf and

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Bidram, 2012; T. Suchitra Rani and Dhanya, 2005; R.F. Lauterborn, 1993). Porter’s 5 forces
has been used to measure external problems as they are the standard measure for analyzing

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the external challenges and there are studies relating to outsourcing and consulting
effectiveness measurement using this 5 forces model (Tanakorn Rachapila and Sittha, 2013;

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Mohammad Bolorian Tehrani, 2014; Ahmad Reza Kasraia et al., 2012; Anne L. Powell,
2001). However, using these aspects on Consulting in the advent of e- consulting for HR
requirements has not been attempted in the research aspects. In our study, we have attempted

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to use the concepts of service marketing as a theoretical basis for constructing the scale to
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measure the problems faced by consultants.

The theoretical background of the study:

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On exploring the ‘e’ options available in the literature with respect to ensuring virtual
transactions for HR management, it was found that there are studies with respect to the
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procedures on implementation of Virtual HR/e- HRM practices adopted by Companies

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(Gregory, 2011; Marie Karakanian, 2006; Snell, et al. 1998, 2001; Seema and Rinku, 2013;
Bell et al., 2006; Shilpa and Gopal, 2011). Secondly, the challenges faced on implementing e-
Consulting were studied by looking into e- Business/e- Commerce implementation (Emma
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parry, 2011; Sven Laumer et al., 2010; Dave Ulrich, 2000; Prasad et al., 2000). According to
Prasad et al., (2000), there are various aspects to be considered when e-consulting is
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implemented: (i) the economic aspects include cost justification, internet access and telecom;
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(ii) infrastructure aspects includes skill shortage; (iii) technical aspects include Reliability,
Security, bandwidth, protocols and integration; (iv) Social aspects include cultural diversity,
Privacy/security, trust, absence of “touch/feel” and (v) legal aspects include Intellectual
property rights, legal validity of transactions, taxation issues and policing/regulation. Several
studies on e- Business emphasize value creation as the most vital aspect of business
(Christoph, et al.,2000; Amit and Zott, 2012; Chaharbaghi and Willis, 2003; Hedman &
Kalling, 2003). There are various studies on the aspects of web based learning (Gary James,
2002; Cifuentes, 2001), virtual trainings (Kevin Krise, 2002; John Buzhadt et al., 2005; Cindy
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Huggett, 2014; Poorani and Rajeswari, 2014) and e- recruitment (Rajat Agarwal, 2004;
Pavitra Dhamija, 2012; Parry, 2009) that contribute towards the integration and
implementation of e-consulting. Thus e-Consulting will be based on providing consulting
services through internet to businesses, groups and individuals irrespective of their location
and to better satisfy the needs and expectations of their customers. Thus it has its root on e-
Business and enables consultants to effectively carry out their business in the ‘e’ mode.

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From the literature, the evident gaps were identified: (i) Very few studies on e-
consulting and its influence on value creation. (ii) To our knowledge there are no studies that

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exist in Indian context on comparison of time frame on e- consulting adoption to understand
the effect of e- consulting on value creation in business. This study tries to focus on

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Relationship, Internal and External Problems, and primarily on value creation that can be
augmented through implementation of e- consulting in the long run.

3. METHODOLOGY:
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This paper primarily aims at benchmarking value creation in e- consulting business
for HR consultants by verifying the impact of various problems, mentioned above, on e-
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consulting and then focusing on identifying the vital factors of e- Consulting perception that
can contribute to value creation in e- Consulting business by applying path analysis
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technique. t- test method was adopted to understand how value creation happens in the advent
of e Consulting in the long run. The data for the study are primary in nature and were
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collected from HR consultants in India who have started adopting e- Consulting practices
(handling requirements and serving clients on Virtual mode) for the outsourced HR
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requirements from their clients. Questionnaire were developed and circulated to the
consultant, for the purpose of data collection. 250 HR consultancies were indentified on the
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basis of purposive sampling among the major cities (IT hub) in India (Chennai, Bangalore,
Pune and Mumbai), criteria being the Consultant should have adopted e- consulting for a
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period of at least 6 months and the consultant should be willing to participate in the study.
The authors personally visited the consultants for the purpose of data collection and the
questionnaire was issued to the person in the companies who are directly involved in the
transactions. Out of 250 questionnaires circulated only 200 were found to be complete and
appropriate for the study.
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The questionnaire was segmented into 3 parts. First part of the questionnaire dealt with
problems pertaining to 3 parameters, Relationship problems, External problems and Internal
problems. Scales were developed to measure each of the problems. The rating scale used in
the questionnaire was a 5 point Likert scale (1- Strongly Disagree, 2- Disagree, 3- Neither
Agree or disagree, 4-Agree, 5- Strongly Agree). From a consultant’s point of view, providing
‘virtual training’ is a form of ‘service delivery’. As per the study of BCG report in 2004,

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external, internal and relationship factors has been considered as the major contributors
towards value creation in business. Hence to measure the problems faced by consultants in

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getting their services delivered, service marketing concepts were capitalized.

Relationship Problems: It measures the various problems pertaining to relationship aspects

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of Consultant and the Client (outsourcing company). In order to measure the same
SERVQUAL parameters (Responsiveness, Assurance, Tangibility, Empathy and Reliability)

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have been used to understand the issues faced by Consultants with their Clients. Apart from
the SERVQUAL parameters, one additional variable namely Relationship Risk was used to
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address the critical aspects not covered by SERVQUAL parameters. A study by Tanya (2017)
indicates a direct relationship with service quality and e- mode of HR management.
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Internal Problems: It measures the various problems pertaining to internal aspects of

Consultant and the Client (outsourcing company). 8P’s were used as the parameters to
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estimate the difficulties faced by Consultants in getting the requirements (Recruitment or

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Training) implemented for their Clients. There are both common questions and specific
questions in this scale under Talent acquisition and Talent Development respectively (Henry
and Volker, 2018)
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External Problems: It measures the various problems pertaining to external aspects of

Consultant and the Client (outsourcing company). In order to measure the external problems,
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the Porter’s 5 force model parameters used were: Bargaining power of Customers,
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Bargaining power of Suppliers, Threats of Substitutes, Threat of Industry, and Threat of

Competitors. Delloitte had come up with an extensive study in 2009 on the contributors of
HR strategy through value creation in business and external parameters (Porter’s 5 force
model) that we have considered in our study is a part of it.

Next part of the questionnaire is dealt with e- consulting perception of the HR consultant.

e- Consulting Perception: It measures the various areas of focus under e- consulting. 4

factors emerged as the factors contributing to e- consulting perception. They are:
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(i) Business demand focus- It focuses on aspects related to dealing with the business
demand such as coping up with business demands, coping up with globalization,
vendor management and staff management. (Delloite report, 2009)
(ii) Customer service focus- This cadre to ensuring quality, customer satisfaction and
whether on long run the customer will find e- consulting adoption helpful for
them. (Boston Consulting group report, 2004)

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(iii) Optimum resource utilization- It ensures aspects of optimizing resources like staff,
time and location (Nissen, 2018)

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(iv) Relationship focus- It focuses on relationship aspects of the consultants with their
clients. (Jamieson et al, 2018)

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The final part of the questionnaire had 5 parameters to measure Value creation in business.
Value creation in business: Cost Minimization for clients, Quality of Service delivery,
Timeliness of service, Providing Customized service and Growth /Profit for the company

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were the 5 measures used to assess the value creation in business on the advent of e –
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Consulting.
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Hypotheses: The following Hypotheses were framed with the help of Literature on
Problems (Shubenkov, M. V, 2015; Raquel Adriana Pin Gafuri et., al, 2017) and Value
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Creation (Jesus Rodney A Stewart 2004; Meijerink, Jeroen et., al 2013; Kohansal,
Mohammad Ali et., al 2016; Cambra-Fierro et., all 2018).
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HO PRIE: There is no significant difference in Relationship,

. Internal and External Problems between companies that have newly (Less than 2
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years) implemented E Consulting and seasoned (More than 2 years)

Companies in E Consulting
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HO EP: There is no significant difference in e- Consulting perception between

companies that have newly (Less than 2 years) implemented E Consulting
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and seasoned (More than 2 years) Companies in E Consulting

HO V: There is no significant difference in Value Creation between companies that
have newly (Less than 2 years) implemented E Consulting and seasoned
(More than 2 years) Companies in E Consulting
HO VRIE: There is an effect of Relationship, Internal and External Problems on value
Creation
HO EPRIE: There is an effect of Relationship, Internal and External Problems on e-
Consulting perception
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Table 1: Mean Difference between consultants who had Implemented e consulting in < 2
and >2 years
Implementation of
Variable name e consulting Frequency Mean Df t value Sig.
Classification
Less than 2 Years 127 3.221
Relationship problems 198 -1.182 0.239
More than 2 Years 73 3.283
Less than 2 Years 127 3.240
External problems 198 0.428 0.669
More than 2 Years 73 3.214

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Less than 2 Years 127 3.297
Internal Problems 198 -2.060 0.041
More than 2 Years 73 3.424
Less than 2 Years 127 3.416
e- Consulting perception 198 -3.443 0.001

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More than 2 Years 73 3.678
Less than 2 Years 127 3.582
Value Creation 198 -2.815 0.005
More than 2 Years 73 3.871

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Less than 2 Years 127 3.619
Relationship Focus 198 -2.373 0.019
More than 2 Years 73 3.844
Less than 2 Years 127 3.439
Optimal resource Utilization 198 -2.643 0.009

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More than 2 Years 73 3.709
Less than 2 Years 127 3.228
Customer Service Focus 198 -3.652 0.000
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More than 2 Years 73 3.613
Less than 2 Years 127 2.980
Business Demand Focus 198 -2.618 0.010
More than 2 Years 73 3.171
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Table 2a: Descriptive statistics

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Variable name Mean Median Mode Skewness Kurtosis

Relationship problems 3.244 3.220 3.26 0.312 -0.108
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External problems 3.231 3.270 3.40 0.122 -0.339

Internal Problems 3.343 3.310 2.99 0.379 0.391
e- Consulting perception 3.512 3.530 3.47 -0.495 0.902
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Value Creation 3.688 3.800 4.00 -0.453 0.263

Relationship Focus 3.701 3.833 4.00 -0.480 0.353
Optimal Resource
3.532 3.600 3.40 -0.564 0.759
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Utilization
Customer Service Focus 3.369 3.333 4.00 -0.346 0.382
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Business Demand Focus 3.050 3.000 3.00 0.006 1.113

Table 2b: Reliability and Normality Tests

Variable name Kolmogorov-Smirnov (KS)

Skewness Kurtosis Reliability
Test for Normality
Relationship problems 0.312 -0.108 0.809 0.087
External problems 0.122 -0.339 0.729 0.200
Internal Problems 0.379 0.391 0.904 0.200
e- Consulting
-0.495 0.902 0.909 0.200
perception
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Normality and Reliability tests were attempted on the scales pertaining to Relationship
problems, External problems, Internal problems and e- consulting perception and the results
were tabulated (Table 2a and Table 2b). From Table 2a and Table 2b, it can be seen that the
data for all the scales are normally distributed as the significance values are more than 0.05
and the Null hypothesis of Data not different from normal distribution cannot be rejected

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therefore the data is normally distributes and all Parametric and Advanced Multivariate
statistical can also be applied on the data. The results of reliability of the scales were assessed

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using Cronbach’s alpha and the calculated values are above 0.70 signaling consistency. Face
validity was established with the help of experts from the field.

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Table -1 represents the results of t test performed between 2 groups of consultants. One group
had adopted e-consulting in the recent past (< 2 years) and the other group had adopted e-
consulting for more than 2 years. From the results it is notable that internal problems, e-

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Consulting Perception, the 4 factors of e- Consulting Perception and Value Creation show a
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significant difference in their mean scores as the t statistics are significant at 5% from this the
Null Hypotheses HO PI, HO EP and HO V are rejected. Whereas the same cannot be said for
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the HO PR and HO PE because the t statistics are not significant at 5% Based on the mean
score values, it can be inferred that the group that had adopted e-consulting for more than 2
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years have more favourble perception towards e Consulting and also feel there is more of
Value Creation on implementation of e Consulting than those consultants who had adopted e
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Consulting in the last 2 years. But both the groups have a favourable perception towards e
Consulting and feel there is Value Creation on implementation of e consulting as the means
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scores of both the groups are above 3 (theoretical mean) for all constructs as well. Secondly,
the consultants who face more internal problems also have a favorable perception towards e-
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consulting (the consultants who had implemented e consulting for more than 2 years). This
indicates that e- consulting is seen as an elixir for minimizing the internal problems.
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However, relationship problem and external problem have no significance difference in mean
scores between <2 and >2 years groups.
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Figure 1: Value Creation Model (Path Diagram)

REL 0.248***

0.042
INT VAL 26% R2
0.024 0.008
0.302***

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0.187**
EXT -.0.096
0.027**

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-0.057 0.069
E Con
Perception

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10% R2

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*** Significance at 1%, ** at 5% and * at 10%
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From the above path diagram it can be seen that there is a significant (1%) positive
effect of relationship problems on value creation, so HO VR is rejected, and it is concluded
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that a unit decrease in relationship problems (negative measure, more the score less is the
problem) will lead to 0.248 units increase in value creation. Whereas there no effect of
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relationship problems on the e- consulting perception so HO EPR cannot be rejected. On the

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other hand, Internal problem seems to significantly (1%) effect e- Consulting perception
positively, therefore HO EPI is rejected and the inference is, 1 unit increase in internal
problems (negative measure, more the score less is the problem) will lead to 0.302 unit
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decrease in the e- consulting perception. But it does not affect value creation so HO VI cannot
be rejected (5%). External problems do not seem to influence value creation or e- Consulting
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perception in any way hence both HO VE and HO EPE cannot be rejected (5%). e-
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Consulting perception is measured on 4 constructs (discussed above) of which only Optimal

Resource Utilization and Customer Service Focus have a significant (5%) positive influence
on value creation that is 1 unit increase of Optimal Resource Utilization and Customer
Service Focus will lead to 0.187 and 0.027 units increase in value creation respectively. The
overall model has an R2 26% where by Relationship, Internal and External Problems and e-
Consulting Perception constructs together explains 26% of the change in value creation.
Whereas the (first model) Relationship, Internal and External Problems explain 10% of the
chance in e- consulting perception.
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4. DISCUSSION:

The major finding of this study is that when consultants adopt e-consulting, in the
long run they have a favourable perception towards e- consulting which in turn leads to more
value creation in business (Poorani and Rajeswari, 2014; Poorani and Thiyagarajan, 2017b).
This is in accordance with studies on Virtual HR (Snell S A et al., 1998, 2001; Gregory R
Berry, 2011) that states that virtual HRM creates value to business. Relationship problem is

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mostly associated with the client (Company) and Consultant relationship therefore a
reduction in this problem or an improvement in relationship between the two will have an

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effect on value creation as both the parties feel that they are in a better relationship. A win-
win situation for both whereby the business will flourish and will lead to value creation of it,

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which is the ultimate objective and a definite indicator of performance of any business.
Various studies that focus on client- consultant relationship also emphasize on the same

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(Robin Fincham, 1999; Andreas and Alexander, 2002; R. Lopes da Costa, 2013). According
to (Tanya, 2017) Relationship and internal factors play a vital role in virtual mode of HR
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implementation. External problems have less to do with e- Consulting perception as the
coefficients are insignificant (10%).
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Internal problems are the problems faced by the consultants internally on which they have a
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control and which has a direct impact on the quality of service delivered (Training needs).
When internal problem increases, perception towards e-Consulting decreases because the
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Consultants now feel that they have more problems in their hand (internally) to manage so it
is unnecessary to go into e-consulting which involves additional cost and other associated
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problems. This is only a myth however the reality is that most of the internal problems
(people, place, price, process and productivity) get aligned with the advent of e- Consulting.
Number of staff gets reduced. Place becomes convenient due to video conferencing. Price
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gets reduced as more audience is covered and process gets simplified. Productivity is more
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because more number of people can be trained at the same time. Thus advent of e Consulting
can rectify most of the internal problems. It has been proven that e- Consulting (e-
recruitment) ensures shorter recruiting cycle time (Hays, 1999), low cost (Williams and Klau,
1997), better quality of response (Welch, 1991), reduction of unqualified candidates (Pin,
2001) and less intrusive. Executives understand the real costs associated with a 1½ day trip to
attend a 1½ hour meeting, they appreciate how today’s audio-video-web conferencing
solutions help them save money, reduce wear and tear and stress in their business and
personal lives, and boost personal productivity at the same time (Davis and Weinstein, 2005).
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With respect to the factors of e-Consulting perception, Optimal Resource Utilization
which ensures efficient utilization of resources in delivering e- Consulting service will
directly increase value creation in business for consultants. Better people management can be
ensured with e- Consulting since most of the jobs are done online, the number of staffs
required drastically reduces and also tracking and maintaining records becomes easy. This is
in accordance with the study made by Shilpa and Gopal, (2011) which concludes that, any e-

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HRM installation exercise, if taken up in the right perspective, keeping all the challenges in
mind can take an organization towards success and manage better the company’s most

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important resource- its people. Cost cutting can be made effectively as several requirements
can be catered simultaneously and on a global basis.

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Leading companies are using six analytical tools to improve the connection
between HR investments and business returns: employee databases; segmentation of

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talent; targeted investments; customization of the employee value proposition; long‐term
workforce planning; and talent supply chains (Jeanne et al., 2011). Secondly, Customer
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Service Focus which ensures level of importance given to service requirements or demands
of the clients and their delivery mechanism. Thus, it is important that the consultants
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concentrate on understanding and reframing the mindset of Customers and promote e-

Consulting services accordingly. Similarly, clients also need to ensure that they select the
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right Consultant for their Company (Poorani and Thiyagarajan, 2015). The results thus
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emphasis that if these two factors of e- consulting are managed efficiently then there is an
obvious increase in value creation of business.
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From the t- test results it is evident that within 2 years of adoption of e- consulting
may not show much visible changes or improvement in value creation. Consultants thus need
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to be persistent and consistently equip themselves towards using e- Consulting effectively in

order to reap the fruits of the same in long run. Due to fear and various myths that exist on
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emphasis of face to face conventional transactions many consultants have not adopted e-
Consulting. Secondly, it requires high set –up costs and also the consultants need to undergo
training to adapt and use it in the right way to garner the benefits of e- Consulting (Poorani
and Thiyagarajan, 2017b). However, when the Consultants consistently implement e-
Consulting appropriately, it will be evident that it contributes to value creation in business in
terms of 5 aspects namely, Cost Minimization for clients, Quality of Service delivery,
Timeliness of service, Providing Customized service and Growth /Profit for the company.
 ACCEPTED MANUSCRIPT
5. CONCLUSION:

This study significantly helps the consultants to realize the various problems that existed
with respect to e- consulting service implementation and the problems that can be minimized
on long run on adoption of e- consulting. Thus it majorly focuses on the fact that if the
consultants have a right perception towards e- consulting usage and use it in the right way,
they can resolve the relationship and internal problems and also ensure that value creation in

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business is achieved. In simple language, this study provides direction on how e- Consulting
can be used to bridge the gap between the client and consultant to ensure that transactions

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related to outsourcing activities can be made a win-win situation for both Consultants and
their Client Companies. The limitation of the paper is that only selected HR Consultancies

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with a purpose and willingness to participate from major cities of India were taken into
consideration. Future studies could be on performance evaluation and metrics aspects on

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value creation in e- Consulting.
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HIGHLIGHTS:

Purpose- HR Consulting has become inevitable in the current scenario. However, the
consultants are not equipped enough to withstand the demand and serve efficiently and
effectively. In the current scenario there exist lots of problems in the consulting firm and this

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paper focuses on, the advent of e- consulting and the extent to which it has invaded into the
industry to provide value creation in business for the consultants and also minimize their

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problems.

Design/methodology/approach- A stepwise procedure had been adopted for ensuring the value

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creation in business of consultants. Firstly, the problems in the HR consulting firms were
identified. Secondly, various factors of e-consulting perception that contribute to value creation

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in business were analyzed. Finally, a model was developed to check the extent of the
contribution of various factors on value creation in business after the adoption of e- consulting.
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Findings- The model signifies the minimization of problems and enhancement of value creation
in business on the advent of e- Consulting.
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Research limitations/implications- The evaluation of the framework was limited by the number
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of samples involved.
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Originality/value- This study develops a framework to guide and use of best practice as
benchmarking on the advent of e- consulting implementation. The framework explains how e-
Consulting implementation can be effectively used by the client and consultant to ensure a win-
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win situation for both Consultants and their Client Companies. In addition, there are limited
empirical benchmarking frameworks.
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