EY, BCG, Accenture & consulting Firms’ earnings from U.S. Government $18Bn+

• Elon Musk’s Department of Government Efficiency (DOGE) is on a mission to slash $2 TRILLION in government spending!

• Bad news for consulting giants (Accenture, BCG, Deloitte, EY, Guidehouse, KPMG, McKinsey) who raked in $18B from Uncle Sam—up from just $5B a decade ago.

• Consultants… Musk is coming for your billable hours!

According to data from The Economist – Consulting Firms’ Earnings from the U.S. Government exceeds $18 billion….

EY: Earned nearly $70 million since 2020 for a reform initiative at the Department of Housing and Urban Development (HUD).

Boston Consulting Group (BCG): Secured $380 million since 2022 from the Defense Health Agency to support its “Workforce 3.0” initiative.

Accenture: Bagged $700 million from the Department of Education since 2019, developing and maintaining a student aid website, mobile app, and virtual assistant.

Booz Allen Hamilton: A true public-sector powerhouse, with $9 billion from the federal government in the last fiscal year alone. They derive nearly all their revenue from public-sector contracts!

After its association with opioid manufacturers, McKinsey’s exposure to federal contracts has become minimal, generating less than 1% of its global revenue from these deals.

On average, the federal government accounts for about 8% of the revenue across these firms, making it the single largest client.

The Disruptor: Palantir

While traditional consultancies face potential cutbacks, Peter Thiel’s Palantir is on the rise.

The AI-driven analytics firm, known for its deep ties to the Department of Defense, has seen its government revenue skyrocket 45% year-over-year in Q4 2024.

Since Trump’s re-election in November, Palantir’s stock has more than doubled, while firms like Booz Allen Hamilton have seen sharp declines.

Why Palantir is Winning the Government’s Trust

AI-Driven Efficiency: Unlike traditional consulting firms that rely on advisory services, Palantir integrates AI into government operations, streamlining data and eliminating inefficiencies.

Cutting Out the Middleman: Musk and Thiel believe traditional consulting is a “total racket.” Palantir’s technology reduces the need for external consultants, allowing agencies to run leaner.

A Direct Threat to Consulting Giants: While Palantir still collaborates with firms like Accenture and Deloitte, many experts believe it will soon replace them as the go-to AI-driven consulting powerhouse.

What’s Next?

With Palantir rising and DOGE pushing for massive spending cuts, the future of traditional consulting in Washington looks uncertain.