SQL Server Performance

Money Matters

Discussion in 'EditorsBlog' started by shanetasker, Sep 8, 2008.

  1. shanetasker New Member

    I was reading an article in the weekend magazine that comes with my local paper about crime statistics and it was reported that as many as 83% of all crimes are associated with money in some form or another. Many of these crimes are opportunistic such as someone being in debt and robbing a convenience store as they saw no other way out of their situation. The gist of the article was that money will motivate people to commit acts that they normally would not consider.
    In the workplace I think a lot of employers take advantage of their staff in a similar opportunistic way. I am sure many of you have hired a consulting company or maybe you have even worked for one. What often happens is that when a consultant comes in is that the consultant has just graduated from college and you are paying an exorbitant hourly rate for their services. However, the consultant is often lucky even to see 20% of the hourly rate that they are being charged out for. Although this is not a crime, it is certainly taking advantage of the client and the consultant. I believe there is a place for companies to make a profit by I don't think they necessarily need to take advantage of their staff and customers in the process.
    - Peter Ward
  2. Deekay New Member

    I partially agree. I am not an employer, but I have felt this way before when working for another company. The thing is, the owner's are the ones putting up the risk and the investments to keep the business going. Also, there are other expenses such as accounting (to manage the consultant's pay) that is not directly billed to customers, receptionists and support for taking the calls and appointments in the first place, required tax contributions for employees, electricity, rent, etc. If there are any lawsuits for the work performed incorrectly, this will be against the owners of the company, and not the consultant they sent.So yes, sometimes, the owners are getting away with murder, but then again, they have all the infrastructure and risk to deal with.Where I think things are really getting out of hand is when someone goes off on their own and they still charge the $120-200/hr when they don't have all this overhead to cover...they are the ones that are really gouging the customers.
  3. TommCatt New Member

    Any business practice can be misused.Some years ago I played around with the idea of starting a consulting service. The idea was to charge the customer based on skill level. If all they needed was entry-level, that's all they paid for. If they needed expert-level skill, they paid appropriately. I had thought a fair split for the consultant was 25/75. I am surprised that consulting companies can operate otherwise.As for paying $120-200/hr for an independent consultant: If he was worth that much coming through a consulting company then he is worth that much coming in as an independent. There is no gouging going on there. More power to them.
  4. Well said everybody. I agree that the consulting company has some overhead and risk -- but I also agree that consulting companies tend to overcharge for their services. I think it all depends on what the consulting company is provided to both the customer and the consultant. Most consulting companies I have worked for have provided nothing more a go-between between me and the company. Although I think that's a valuable service in itself, it doesn't warrant taking more than 10-15% of the rate in my opinion. On the other hand, it the consulting company is helping to manage the project, gathering new work from the customer, and helping you find new work when you have completed the project that's different in my opinion. My greater concern when it comes to rates and salaries is the fact that the many consultants and employees are driving down the rates and taking much less for projects or positions than is wise. Therefore the entire industry is losing ground financially because of this trend. For the past few years I have working as an independent and I have appalled at the rock-bottom bids of the projects that I have been bidding on. I would like to the trend change and remind all IT professionals to strive to get what is deserved for their valuable skills.
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