A top-down approach to project calculations through the analysis of budgets and man-week data
Cost structures and the composition of professional services teams on client engagements
Complementary bottom-up approach with data on daily rates and seniority levels in PSFs
Spending EUR 4.000 or more per day on a single resource seems ridiculously expensive. However, such price tags are common among professional services firms (PSFs) and especially in Management Consulting. One might easily question the justification for such rates. Such critics are nourished by a certain opaqueness of the market structure and pricing methodologies of PSFs. With this article and our related whitepaper, we want to shed some light on the cost structures and daily rates of PSFs in 2020 and possible implications behind them. Despite high rates, companies around the globe are contracting PSFs to solve their business challenges. The Consulting industry alone has grown roughly 7-8% p.a. over the last 5 years and accounts for almost € 40 billion in the DACH market. At APADUA, we offer a software suite to digitally manage PSFs as a strategic category in Procurement.