Interesting on that first point, that's not what i would have expected. So what are you seeing from these product-minded engineers that leads them to choose a consultancy over a product company?

For "underdog" consultancies, i've always felt that they win by

1) sending their A team where an incumbent would be sending in their C team. That would make sense, as the incumbent's A team is on a more important client, whereas this small client "is" the underdog's important client.

2) carving out niches and specialties. So you serve less clients and projects, but also build up a reputation. You kind of become an incumbent of sorts, just for that niche.