IT Consulting Fees

Just as there are many different varieties of IT consulting, there are options with your payment methods. You should learn the options you have before you decide to pay a fixed fee or bill hourly.

Hourly Billing: Pros and Cons

  • Many of the IT consulting tasks are hard to justify cost on an hourly rate (Relationship building, proposals, and learning new software).
  • Clients tend to dislike hour billing.
  • There needs to trust between the IT consultant and business owner.
  • Hourly billing works well if the scope of the project is unknown, or if the project is open-ended (web design).

Fixed Fee Billing: Pros and Cons

  • Consultants are able to freely implement solutions and may be inclined to think of more long-term solutions.
  • You don’t have to micro-manage the billing hours, and worry about payroll services discrepancies.
  • Your business and IT consultants are partnered based on results.
  • Best if you're able to accurately assess the amount of work needed for a project.

Many companies are now moving towards a fixed price-consulting model, expecting the delivery of services within a defined time and price structure. Loose, hourly/daily payment models are generally in favor of the consulting firm. There is no incentive to complete assignments within a given time, and there is often project and cost overruns. Fixed fee IT consulting services however, are not popular yet with IT consulting firms, but those who do provide these fixed fee services are growing.

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