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18-03-2009, 00:02   #1
PK2008
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Average SAP Consultant hourly rate

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?
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21-03-2009, 19:02   #2
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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.

Last edited by philtaylor; 21-03-2009 at 19:04.
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27-03-2009, 01:42   #3
mountainyman
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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.
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01-04-2009, 13:37   #4
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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!
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03-04-2009, 14:34   #5
deepriver
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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
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03-04-2009, 14:36   #6
deepriver
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Please excuse my ignorance but what profession (in a nut shell) commands this kind of cash per day?
Im obvioulsy in the wrong industry!
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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03-04-2009, 21:21   #7
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I think the game has changed for consultants now. The ball is burst and everyone will be negotiating down fees.
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04-04-2009, 11:24   #8
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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.
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06-04-2009, 10:03   #9
deepriver
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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
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08-04-2009, 20:15   #10
PK2008
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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
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09-04-2009, 00:37   #11
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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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09-04-2009, 11:01   #12
murphaph
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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.
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10-04-2009, 11:22   #13
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Please excuse my ignorance but what profession (in a nut shell) commands this kind of cash per day?
Im obvioulsy in the wrong industry!
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.
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10-04-2009, 11:24   #14
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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.
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10-04-2009, 17:54   #15
murphaph
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But deepriver said...
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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?
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