So when do people use consultants ?

Consultants are just temporary resources that companies use to get things done, or they should be. In the past some consulting firms have been accused of bad practice by effectively becoming virtual employees that have taken over their clients business ! Good consultants will be able to articulate clients problems and then describe an approach and apropriate methods to getting those problems resolved. Issues arise when clients dont understand how to best to work with and motivate consultants, or think that simply hiring contractors will somehow work. Contractors, dont get me wrong, are fine when the problem and the solution is really understood by the client, but where this is not the case, hiring a consulting firm will always deliver better value for money and get better results.