Re: What is Consulting?
Posted: Jan 16, 2006 2:55 PM
> I am doing consulting for awhile. It seems the consulting
> industry has been shifted to low end. A consultant used
> to get high hourly rate around $100+/hr and can live a
> a rather good life. Now it is usually $50/hr for a 3-6
> month contract, working along with some offshore
> consultants. And on site you see outsourcing firms work
> from offshore with a rate of $5/hr. And usually clients
> let you go because they don't have fundings for you even
> you solved their problems and did a good job.
> How can we ask those guys with $5/hr pay being expert in
> consulting business.
> I suspect that eventually, consultants means temp workers
> earning $6.75/hr (that is minimun wage) with no health
> insurance, no paid vacation time and they are supposed to
> be experts in Java, peral, C++, Oracle, etc, by client
Unfortunately, I know about off-shore consultants first hand. There are a few of them on the development team Ive lead for the past several years. First of all, they are no longer as cheap as you think they are. We are being charged about half of what a really solid experienced domestic consultant or staff developer (not just a body, but a brain as well) would cost. However in my opinion they are (a) not even worth half the money we pay due to the lack of real experience, cultural differences and accountability; (b) the rates are slowly but surely going up and soon (when we're through killing our domestic IT resources) will equalize; and (c) I am forced to train and mentor those so called "consultants" to get them to perform adequately on my projects, as I'm sure many technical leaders, architects and project managers have done as well. So, not only outsourcing IT work to numerous off-shore vendors is damaging to our economy in general and the IT profession in particular (and especially to those true consultants who have brought real value to the clients for years), bit it's also a significant drain in my project budget without any considerable and/or timely return on the investment. All my 3 off-shore consultants are rookies, and some of them are mediocre rookies at that. I'd be more than happy to trade all of them for 1 serious and dependable pro. God, it would get me a lot more done while saving my firm serious money in the process. However, the off-shore consulting shops are the only vendors we can deal with based on our corporate policy and after having interviewed dozens of their consultants, I am stuck with my rookies for awhile. To make matters worth, I know that by the time I'm done training them into somewhat skilled developers, they'll be gone as has happened to me on many occasions...