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Average SAP Consultant hourly rate

  • 18-03-2009 1:02am
    #1
    PK2008
    Registered Users Posts: 2,219 ✭✭✭


    Not sure if this is the right forum (so mods if you think it might better elsewhere please move)

    but basically Im just looking to find out what would be the average billing rate for an IT Systems Integration consultant (SAP)

    I need to scope a project and I only need the average rate- its only high level/ball park scoping I need to do.

    Ive tried googling but to no avail- any idea's? Id be particularly interested in the average rate of a "big 4" consultant (Deloitte & Touche etc)

    Can anyone point me in the right direction?


Comments

  • #2
    philtaylor
    Closed Accounts Posts: 273 ✭✭philtaylor


    How long is a piece of string? Depending on the project, level of experience. Avg figure say 750 euro a day. An independent contractor would come in cheaper do but that comes with a **** load more risks.


  • #3
    mountainyman
    Closed Accounts Posts: 2,268 ✭✭✭mountainyman


    PK2008 wrote: »
    Not sure if this is the right forum (so mods if you think it might better elsewhere please move)

    but basically Im just looking to find out what would be the average billing rate for an IT Systems Integration consultant (SAP)

    I need to scope a project and I only need the average rate- its only high level/ball park scoping I need to do.

    Allow 1000 a day from a management consultancy.


  • #4
    Dabko
    Closed Accounts Posts: 575 ✭✭✭Dabko


    mountainyman wrote: »
    Allow 1000 a day from a management consultancy.

    Please excuse my ignorance but what profession (in a nut shell) commands this kind of cash per day?
    Im obvioulsy in the wrong industry!:D


  • #5
    deepriver
    Registered Users Posts: 346 ✭✭deepriver


    consulants and 3 party contractors usually charge 3.5 times their standard in house contract wage

    example

    if the company was to hire you they would pay you say 50,000 per annum, if they were to hire you as a contractor (ie you cover your own office expenses, prsi, pension etc) you could expect up to three times that amount 150,000

    so work out a daily rate based on that... and dont undersell yourself


  • #6
    deepriver
    Registered Users Posts: 346 ✭✭deepriver


    Dabko wrote: »
    Please excuse my ignorance but what profession (in a nut shell) commands this kind of cash per day?
    Im obvioulsy in the wrong industry!:D

    lawyers, solicitors, accountants, IT professionals, project managers, engineers, the list goes on...

    it wouldnt be unusual for a mid-level contractor to pull in a larger wage than a CEO, depending on the length of times involved


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  • #7
    byrne0f56789
    Closed Accounts Posts: 201 ✭✭byrne0f56789


    I think the game has changed for consultants now. The ball is burst and everyone will be negotiating down fees.


  • #8
    murphaph
    Registered Users Posts: 19,017 ✭✭✭✭murphaph


    byrne0f56789 wrote: »
    I think the game has changed for consultants now. The ball is burst and everyone will be negotiating down fees.
    Especially public sector spending on consultants. That will face the chop mostly and a lot of pressure will be put on the ones who keep their contracts. We all have to deal in reality.


  • #9
    deepriver
    Registered Users Posts: 346 ✭✭deepriver


    murphaph wrote: »
    Especially public sector spending on consultants. That will face the chop mostly and a lot of pressure will be put on the ones who keep their contracts. We all have to deal in reality.

    well the reality is, where charging a 3.5 rate, one third of that is the actual wage cost, the second third is to cover additional expenses of being a third party contactor and reflects the short term nature of the arrangement, and the third part represents the profit of the contractor company. Thats been a pretty conventional approach since consulting has been occuring in this market for 30 or forty years and has rode out recessions and booms before, although it is entirely possible that rates could come down in an economic depression, 3.5 rate is a good bench mark to base fees on


  • #10
    PK2008
    Registered Users Posts: 2,219 ✭✭✭PK2008


    Thanks guys, I mailed one of the Big 4 and they said it can range from €60 to €300 per hour.

    Nice work if you can get it eh:D


  • #11
    Sleepy
    Registered Users Posts: 24,140 ✭✭✭✭Sleepy


    PK2008, don't be afraid to negotiate hard if you go ahead with the project. I sometimes work on a competing ERP system and know our rates are pretty flexible at the moment ;)


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  • #12
    murphaph
    Registered Users Posts: 19,017 ✭✭✭✭murphaph


    deepriver wrote: »
    well the reality is, where charging a 3.5 rate, one third of that is the actual wage cost, the second third is to cover additional expenses of being a third party contactor and reflects the short term nature of the arrangement, and the third part represents the profit of the contractor company. Thats been a pretty conventional approach since consulting has been occuring in this market for 30 or forty years and has rode out recessions and booms before, although it is entirely possible that rates could come down in an economic depression, 3.5 rate is a good bench mark to base fees on
    Yeah I understand the 3.5 figure (insurance is expensive for a start) but the base salary cost I would expect to fall, and with it the 3.5 times figure.


  • #13
    T-Square
    Registered Users Posts: 759 ✭✭✭T-Square


    Dabko wrote: »
    Please excuse my ignorance but what profession (in a nut shell) commands this kind of cash per day?
    Im obvioulsy in the wrong industry!:D

    Think any highly skilled profession, e.g.
    Programmers
    Test consultants
    System Integrators (SAP see above)
    Tax consultants

    it's a long list, and requires years of experience,
    so you can't just step up to the plate and demand to stick your snout in the nose bag.


  • #14
    T-Square
    Registered Users Posts: 759 ✭✭✭T-Square


    murphaph wrote: »
    Yeah I understand the 3.5 figure (insurance is expensive for a start) but the base salary cost I would expect to fall, and with it the 3.5 times figure.

    You aren't getting it.
    The 3.5 stays the same,
    the base salary decreases.


  • #15
    murphaph
    Registered Users Posts: 19,017 ✭✭✭✭murphaph


    But deepriver said...
    deepriver wrote: »
    consulants and 3 party contractors usually charge 3.5 times their standard in house contract wage
    ...so if the in house contract wage falls, surely the figure which is a 3.5 times multiple of it falls too?

    If the 3.5 figure stays the same and the wage taken by the consultant falls, who's taking the extra bit of pie?


  • #16
    DublinWriter
    Registered Users Posts: 9,555 ✭✭✭DublinWriter


    PK2008 wrote: »
    Ive tried googling but to no avail- any idea's? Id be particularly interested in the average rate of a "big 4" consultant (Deloitte & Touche etc)
    Look at the contract SAP jobs on www.jobserve.co.uk for an indication.

    There are several factors to consider. Geographic location of the company is factor number 1 - rates for I.T. contractors in the South of England is a lot more than the rates for similar people in the North of England.

    From experience, rates in Ireland (i.e. Dublin!) tend to be low and around the median point of UK Nationwide rates.

    Secondly, what specific area are you dealing with regarding SAP?...BW? Specific modules? ABAP? BA work?...again jobserve will give you a good indication of rates.

    Thirdly, big 4/5/6 companies will charge a lot more for a body than individual contracts charge for their own services. It wouldn't be unusual for them to charge €1K+ per day.


  • #17
    T-Square
    Registered Users Posts: 759 ✭✭✭T-Square


    DublinWriter wrote: »
    Thirdly, big 4/5/6 companies will charge a lot more for a body than individual contracts charge for their own services. It wouldn't be unusual for them to charge €1K+ per day.

    Sometimes €2K+ per day, sometimes as low as 600

    Consultancies can charge more than contractors,
    because if the guy they send in,
    turns out to be a idiot,
    the consultancy can swap him out in hours,
    and have another consultant take the reigns.


  • #18
    PK2008
    Registered Users Posts: 2,219 ✭✭✭PK2008


    Im not a SAP consultant myself, Im just doing some high level estimates/scoping for a project,

    One of the big 4 got back to me and said its usually between 60-300 (avergaes at about €100 per hour) so I'll be scoping off that- just needed it to create ball-park figures

    Thanks again


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