Average SAP Consultant hourly rate

PK2008

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?

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.

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.

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

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

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

byrne0f56789

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

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.

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

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

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

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.

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.

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.

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?

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.

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.

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