As AI automates consulting work, the Big Four β€” Deloitte, EY, KPMG and PwC β€” are pushing into managed services, threatening to wrest lucrative, long-term contracts from established outsourcing firms.

The shift became clear earlier this month when Deloitte cut 170 consultant positions in Australia while announcing plans to hire more than 500 people for its managed-services division.

β€œIt turns consulting firms into outsourcers,” says Bhupendra Chopra, co-founder of Kanerika, an Austin, Texas-based technology consulting firm.

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