Title: The inpact of external consultants and internal employees on company profitability. 

Authors: Cherie Ringman and Felicia Svensson Schiller 

Published: 2025-05-20

Supervisor: Fazle Rahi

Examiner: Savvas Papadopoulos

Background: As the IT and tech industry is rapidly developing, the need for flexibility within organizations is increasing. A combination of internal employees and external consultants is therefore used by many companies to meet demands for efficiency and specific expertise. This raises questions about how the personnel structure affects company profitability, especially in the IT and tech industry which constantly adapts to changes.

Purpose: The purpose of this study is to examine companies’ use of internal employees and external consultants within the IT and tech industry in relation to profitability. Through this work, the authors aim to gain a deeper understanding of how these resources affect the organization’s financial result.

Research question: How does the choice between external consultants and internal employees affect company profitability in the IT and tech industry?

Methodology: This study has used a quantitative method with a deductive approach. The data has been collected from the Retriever Business database and is limited to companies within the IT and tech industry.

Conclusions: The conclusion of the study shows that there is no relationship between external consultants and internal employees and company profitability. The study contributes a basis for further research on the effect of personnel structure on profitability.

Keywords: External consultants, internal employees, profitability, return on equity (ROE), operating margin.