Why Consulting Firms Are Building Their Own Cybersecurity Practices

In this episode of Service Business Talks with Fexingo, Lucas and Luna explore why top consulting firms are aggressively building in-house cybersecurity practices rather than continuing to outsource to specialized boutiques. They focus on McKinsey's 2024 acquisition of cyber firm CloudSecur—a $350 million deal that signaled a strategic shift. The hosts break down the economics: demand for cybersecurity consulting grew 27% year-over-year in 2025, and margins on these services approach 60%, far higher than traditional strategy work. They also discuss the talent war, with firms offering equity packages to lure CISOs and ethical hackers. Luna challenges whether firms can maintain independence when advising on security products they may have built or recommended. The episode closes with a look at how this move reshapes competition with pure-play cybersecurity consultancies. #Consulting #Cybersecurity #McKinsey #CloudSecur #Strategy #ProfessionalServices #BusinessPodcast #FexingoBusiness #InHouseBuild #MergersAndAcquisitions #TalentWar #CyberRisk #EthicalHacking #Margins #RevenueGrowth #FirmStrategy #ServicesBusiness #PodcastEpisode Keep every episode free: buymeacoffee.com/fexingo