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What Do IT Consulting Services Cost?
IBISWorld estimates that the average price of IT consulting services is $146 per hour in 2017. This price represents the average rate that midsize vendors charge for basic IT network design, and it excludes the additional cost of hardware, software and travel fees associated with on-site visits. Prices vary widely from $40 to $400 per hour depending on the project’s complexity and duration, as well as the supplier’s reputation, experience and location.
The complexity of the buyer’s needs plays a large role in determining the price the buyer will pay for IT consulting services. Complex projects require consultants with more technical skills and, in many cases, specific certifications. Few suppliers meet these qualifications, so those that do can charge higher prices. Thus, vendors charge lower fees for simpler services, such as consulting on the types of equipment or software to purchase, and higher fees for services such as network design and construction. The duration of a project also affects service prices. Longer projects have higher overall costs due to the greater number of hours billed, but generally have lower hourly pricing because suppliers are assured a greater amount of work.
The reputation of the IT consulting firm also affects the price of these services. The more recognized and well known the company is, the higher the fee will be. Larger, more recognized firms charge higher consulting fees than smaller firms or independent consultants. Although many buyers prefer to enter into contracts with established suppliers, those with limited finances should consider purchasing from small firms or independent consultants to get lower prices. Similarly, the experience level of the consultant will impact price. A senior consultant with years of relevant experience will cost a premium (often in excess of 100.0%) over an entry-level junior consultant.
The location of the supplier often plays a significant role in service prices as well. Suppliers located in highly populated, business-dense areas are able to charge a price premium due to the greater proportionate demand in those areas. Conversely, suppliers located in rural areas generally charge lower prices commensurate with a lower cost of living and wages.
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