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home | Consulting Rates
Consulting Rates
Consulting & Advisory Services Firm Rates

This section includes Monadnock Research Research Notes, articles, and general advisories about consulting and advisory services firm rates and rate studies.

Monadnock Research Publishes Compilation of 2011 Consulting & Advisory Services Rate Research
Monadnock Research (Vol IV, No 42) - 3 Dec 2011
This report (2011 Consulting and Advisory Services Rates - Vol IV, No 42) provides the Monadnock Research analysis of consulting rates from a series of comprehensive studies on negotiated client rates from organizations across a number of industries. Rates have been analyzed and presented across the entire range of consulting practice areas, including: Strategy, Operations, Human Capital, Information Technology, and Financial, Transaction and Risk Advisory. "We thank the many client organizations that made this series of consulting rate research possible," said Mark O'Connor, Monadnock Research CEO and Cofounder. "We believe that the analysis presented in this research report, and that of the previously published practice area reports, represents the most comprehensive study of consulting and advisory services rates ever published." The report is more than 225 pages in length, with over 190 charts and tables. For clients that have purchased individual practice area reports published throughout 2011, this report contains full detail for each of those reports. More information, including a detailed table of contents, can be reviewed on the report summary page: http://www.monadnockresearch.net/products/item54.cfm (460 words) . . . More
Lions Gate Sued for Non-Payment Under Terms of Performance-Based Consulting Agreement; Highlights Challenges Small Firms Face in Client Litigation
Monadnock Research (Vol IV, No 41) - 1 Dec 2011
MR - A small consulting firm based in Los Angeles, GBB Consulting, has sued Lions Gate Films over non-payment in a performance-based fee arrangement associated with Nicole Kidman's film, "Rabbit Hole". The suit, filed on 22 November 2011, alleges breach of contract. Kidman was nominated for an Oscar and won a Screen Actors Guild (SAG) award for her performance in the film. GBB claims it wasn't compensated for its services and role in helping to secure Kidman's award and nomination. While the claimed damages are only around $115,000, the case highlights the challenges many small firms face in working with larger organizations with significant resources in high-stakes engagements. Research Note includes a copy of the complaint and MR perspective on the consequences of playing hard-ball and cost-shifting to small and mid-market firms in the current economic environment. (740 words) . . . More
2011 Strategy Consulting Rates
Monadnock Research (Vol IV, No 37) - 28 Oct 2011
This study presents an analysis of hourly strategy consulting rate structures for global 1000 clients across a number of industries. Rates from 70 firms were analyzed across the strategy consulting category, including a total of 119 firm-rate structures. Each section presents descriptive statistics for each of the Monadnock Research professional areas, including mean, median, range, min, max, and the number of rate structures analyzed. Each labor category is described in full detail, including experience and education requirements, and includes a percentile analysis of hourly rates. Rates from firms that were a subject of this analysis for the strategy consulting rate category included: McKinsey & Co., the Boston Consulting Group (BCG), Bain & Co., Booz&Co, Accenture, Deloitte, LEK, Roland Berger, Oliver Wyman, Capgemini, IBM, and PwC. Research Note includes 6 graphics, 15 tables and 8,230 words. The companion report is more than 80 pages and contains 52 tables and charts. . . . More
2011 Operations Consulting Rates
Monadnock Research (Vol IV, No 30) - 23 Sept 2011
This study presents an analysis of operations consulting rate structures for clients across a number of industries, including manufacturing, healthcare, pharmaceuticals, biotech, high tech, communications, energy, financial services, public services, and metals and mining. More than 85 percent of the rate structures were from global entities, and all were from organizations that fall within the 1,000 largest global organizations. Rates from 75 firms were analyzed across the operations consulting category, including a total of 126 firm-rate structures. This report presents statistics across 15 professional classifications, including a percentile analysis for each labor class. Rates from firms that were a subject of this analysis for the operations consulting rate category included: Accenture, ADL, A.T. Kearney, Bain, BCG, Booz&Co, Capgemini, Celerant, CSC, Deloitte, Huron, IBM, McKinsey, PA Consulting, PRTM, and PwC. Research Note includes 5 graphics and 15 tables - 8,000 words. . . . More
2011 HR Consulting Rates
Monadnock Research (Vol IV, N 23) - 23 July 2011
This Research Note includes the findings a client study of Human Resource (HR) consulting rate structures across a number of industries. More than 85 percent of the rates analyzed were from global entities, including a total of 45 firm-rate structures. All were from organizations that fall within the 1,000 largest global organizations. This report presents statistics across 15 professional classifications, including a percentile analysis for each labor class and detailed descriptive statistics. Rates from firms that were a subject of this analysis include Accenture, ACS, AON Hewitt, Booz&Co, Capgemini, Deloitte, Hay, IBM, Mercer, North Highland, Plus Delta, PA, Point B, PwC, and Towers-Watson. (1 graphic, 16 tables, 6,980 words) . . . More
2011 IT Strategy Consulting Rates
Monadnock Research (Vol IV, N22) - 7 July 2011
This is the Strategy Consulting companion Note to the IT Consulting Research Note published in June. This study analyzes comprehensive IT strategy consulting rate structures of clients across a number of industries, including manufacturing, healthcare, pharmaceuticals, biotech, high tech, communications, energy, financial services, public services, and metals and mining. More than 80 percent of the rate structures were from global entities, and all were from organizations that fall within the 1,000 largest global organizations. Rates from 63 firms were analyzed across the IT Consulting and IT Strategy Consulting service categories, with 110 rate structures. Rates from firms that were a subject of this analysis include: Accenture, Atos Origin, AT Kearney, Bain, BCG, Booz, McKinsey, Capgemini, CSC, Deloitte, IBM, KPMG, Oliver Wyman, PA Consulting, PRTM, PwC, TCS, and Wipro. This Research Note presents statistics across 14 professional categories, including detailed descriptive statistics, a percentile analysis for each labor category, and strategy rate differential premiums for each labor category. (2 graphics, 14 tables, 6,350 words) . . . More
2011 IT Consulting Rates
Monadnock Research (Vol IV, N19) - 26 Jun 2011
This Research Note presents the findings of a comprehensive IT consulting rate study across a number of industries, including manufacturing, healthcare, pharmaceuticals, biotech, high tech, communications, energy, financial services, public services, and metals and mining. More than 80 percent of the rate structures analyzed were from global organizations that fall within the 1,000 largest global entities. Rates from 63 firms were analyzed, including 110 separate rate structures. Firms that were a subject of this analysis include: Accenture, Atos Origin, AT Kearney, Capgemini, Cognizant, CSC, Deloitte, Hewlett-Packard, IBM, Infosys, KPMG, North Highland, Oracle, PA Consulting, Point B, PwC, SAIC, SAP, TCS, and Wipro. IT Strategy Consulting rates are presented in a companion report. This Note presents findings across 13 professional categories, including descriptive statistics and a percentile analysis for each labor category. (1 chart and 26 tables - 5,375 words) . . . More
Location-Based Rating Schemes for Consulting Services
Monadnock Research (Vol IV, No 13) - 28 Apr 2011
MR - Some firms are willing to negotiate location-based rating schemes for strategic clients. So what are the average differences in rates for work provided exclusively at the client site when compared to rates for the same work provided at the firm site? Monadnock Research recently concluded an analysis of location-based rating (LBR) from more than 30 consulting firms that proposed 56 separate LBR schedules. Our study included analysis of 242 rate structures from 153 large and very large consulting firms providing services to the U.S. public sector to find those 56 schemes. Of the 153 firms, discounts were offered by 34 firms, primarily by level of professional providing services exclusively from the client facility. The study included rating schemes for IT Consulting, Management Consulting, Financial and Business Advisory Services, Human Resources Consulting, and Marketing Consulting. Research Note includes 2 graphics and firm-level rate analysis for the 34 firms and 56 LBR schedules. (840 words) . . . More
2011 Big Four Consulting and Advisory Services Rates
Monadnock Research (Vol. IV, No. 10) - 17 Mar 2011
MR - This Monadnock Research Note summarizes the findings of a recent client study into Big Four consulting and advisory services rates. Since we find that rate data for the Big Four is not particularly useful unless it is presented across individual rate categories, this Note provides median rates for firms across the following 12 categories: Strategy; Operations; Accounting and Financial Strategy; Legal, Forensic and Risk Advisory; Internal Audit and Compliance; Transaction Advisory; Tax Advisory; Performance Services; IT Audit; Human Resources; IT Consulting; and IT Strategy. Research Note includes 4 charts. (850 words) . . . More
SAP Seeks Dismissal as Party in Marin County Suit
Monadnock Research (Vol. IV, No. 5) - 23 Feb 2011
MR - SAP has filed a motion to dismiss it as a party in Marin County California's U.S. Federal suit against SAP and Deloitte. SAP 's motion claims that the County's case should be dismissed because it fails to make a claim upon which relief can be granted, and does not support the allegations. Marin County claims that Ernest Culver, the County's former Assistant Auditor-Controller and SAP project director was interviewed for employment by Deloitte while he was inappropriately authorizing expenditures for services, and was offered numerous meals as bribes. SAP's motion provides evidence that the County provided written consent before SAP interviewed Culver for the position it now holds. SAP also filed to take punitive and exemplary damages off the table. Research Note includes copies of motions to dismiss and to strike punitive and exemplary damages, as well as other case materials including Deloitte and SAP agreements with the County, with fee schedules. (1,130 words) . . . More
Big Strategy 2011: Consulting Rates and Guidelines for Working with the World's Largest Strategy Specialists
Monadnock Research (Vol. IV, No. 2) - 15 Jan 2011
MR - Literally thousands of firms consult in the area of strategy, but a very small number of large firms view strategy as their core focus. This Research Note focuses on "Big Strategy," or who we view as the world's largest strategy specialists. Working with these firms is different. And there are a number of reasons why it is important for consulting clients to understand the differences. This Research Note provides our estimates and perspectives on: 2011 mean and median rates, and rate ranges by category of professional; average strategy engagement duration; unique project characteristics; what makes firms in this category unique and distinct from large multi-line firms providing similar services; and how to effectively maximize engagement value. Note also provides important keys to better understanding how the rate structures of strategy specialists can be assessed and compared to hourly rate structures of other providers of strategy consulting. (three graphics - 3,045 words) . . . More
Deloitte Reports Flat Global Revenues for Fiscal 2010; Downward Pressure on Rates
Monadnock Research (VIII N40) - 15 September 2010
MR - Deloitte Touche Tohmatsu Limited, the newly minted U.K. global operating entity for Deloitte worldwide, had global member firm revenues of $26.6 billion (USD) for the fiscal 2010 period ended 31 May. Aggregate revenues grew by 1.8 percent in U.S. dollars and were essentially unchanged in local currency terms. While business volume increased from fiscal 2009, realized rates declined. A 15 percent increase in consulting revenues due to the combined impacts of the BearingPoint acquisition, and growth in technology integration, operations, and strategy consulting masked an otherwise challenging year. Deloitte now has one of the largest public services consulting practices in the world, with combined public sector revenues increasing by 38 percent in FY10. Asia Pacific revenues grew 9 percent, making it the fastest-growing region for the sixth consecutive year. Deloitte's Korea, India, Brazil, and South Africa practices each experienced growth over 20 percent. Research Note includes 3 charts. (1,210 words) . . . More
Willis Stands Firm; Refuses Contingency Commissions from Insurance Carriers for Brokerage and Advisory Work
Monadnock Research (VIII N27) - 29 July 2010
Monadnock Research Note - Willis Group Holdings, the global insurance broker and advisory services firm, has sharply criticized Aon and other HR services firms for their decisions to resume acceptance of contingent commissions. This Research Note explores the issues associated with contingent commissions, including the potential conflicts of interest they may pose to providers of services in the areas of insurance risk management, financial, and human resource consulting, and actuarial services. (1,220 words) . . . More
Maverick Spend: Strategies for Controlling Unauthorized Consulting Expenditures
Monadnock Research (VIII N24) - 1 July 2010
MR (VIII N24) - Capturing and managing by-pass spending ("maverick spend") on consulting services is a significant challenge for most global sourcing and procurement organizations. But controlling spend in other procurement categories is generally met with much less resistance. Complexity of this service area combines with a dynamic participant marketplace, and the political influence of decision stakeholders, to set consulting apart from other procurement areas. Understanding the consulting category and its many facets and history is crucial to building an effective program to minimize maverick spend on services. This Research Note presents our perspectives and observations on best practices, and our findings from a recent Monadnock Research study on the practices of twelve organizations representing an estimated $7.6 billion in spending on consulting services annually. (5 Charts, 4,425 words) Link to purchase White Paper for non-subscribers: http://www.monadnockresearch.net/products/item37.cfm . . . More
2010 Large Firm US Public Sector IT Consulting Services Rates Increase by Nearly 3 Percent
Monadnock Research (VIII N12) - 19 March 2010
Rates for IT consulting services provided by the largest firms to US public service organizations in 2010 increased by just under 3 percent over 2009 levels. The mean hourly rate for services across all categories for the 100+ firms surveyed was a little more than $170. This Research Note is the second in our series of rates by practice area and summarizes our analysis of fees under the U.S. GSA's Schedule 70, Sections 135-51, IT Professional Services (ITPS). It also analyzes the consolidated hourly rates of each firm across Monadnock Research's 8 labor rate categories, for the largest of the 3,650 firms providing services in the ITPS category. (1,633 words, 5 Charts) . . . More
Fair and Reasonable Prices for Services More Difficult to Determine; Enhanced Competition at Contract and Order Stages Recommended
Monadnock Research (VIII N11) - 17 March 2010
MR - This Research Note summarizes the key findings and recommendations of a two year study conducted by the U.S. GSA's Multiple Award Schedule Advisory panel into procurement policy regulations, solicitations, and contract provisions, which highlights distinctions between services, solutions, and products. Some key study findings include: (1) It is more difficult to determine fair and reasonable prices for services than for products; (2) Meaningful competition occurs at the contract schedule (MSA) and order levels; (3) The value of a price reduction clause as an effective procurement tool is questionable; (4) Order data is not systematically collected as it should be to leverage client purchasing power; and (5) the best method for determining a fair and reasonable price for services and products is to enhance competition at the contract and order levels, and to ensure that the process of contract and order formation is transparent to both procurement and all authorized ordering activities. Report makes 20 key recommendations to re-architect inter-agency procurement policies, processes, and workflow to increase competition and transparency, and to set the stage for transformation to strategic sourcing within the world's largest organization. (1,653 words) . . . More
2010 US Public Sector Business Consulting Services Rates Increase by 3.5 Percent
Monadnock Research (VIII N10) - 12 March 2010
Rates for business consulting services provided to US public service organizations in 2010 increased by 3.5 percent over 2009 levels. The mean hourly rate for services across all categories was a little under $200. But less than one-fifth of business consulting services firms included executive-level positions in their negotiated rate schedules. This Research Note summarizes our analysis of rates for the business consulting services category under the US GSA's Schedule 874, Mission Oriented Business Integrated Services (MOBIS). It also analyzes the consolidated hourly rates of each firm within MR's 8 labor rate categories, including details on the categories themselves, for the top 5 percent of the 2,000 firms providing related services. Over the next eight weeks we will publish our analysis of rates for financial and business advisory services, human resources and administrative services, advertising and integrated marketing services, and information technology professional services. (1,850 words, 4 Charts) . . . More
Consulting Category Management: Trends & Best Practices
Monadnock Research (VIII N1) - 1 January 2009
Monadnock Research conducted a number of interviews with consulting category management executives at leading organizations during 2009. This 60 page report provides details on the trends, best practices, and strategic priorities at 7 organizations with leading consulting category management practices. The report also provides details on the Monadnock Research Value Leadership Framework for consulting category management. Purchase report here: http://www.monadnockresearch.net/products/item32.cfm . . . More
US Public Services: 2010 Large Firm Consulting Rates
Monadnock Research (VII N49) - 6 November 2009
The US General Services Administration (GSA) is the world's largest consulting services procurement organization. This 500 page report provides consulting rate details for all professional levels and consulting categories for more that 125 of the largest providers of management and IT consulting services to U.S. Federal, State, and Local government clients. Purchase report: http://www.monadnockresearch.net/products/item30.cfm . . . More
Gain Sharing Agreements
Monadnock Research (VII N19) 13 April 2009
Gain-sharing agreements are on the rise, but their application is still rare. This Research Note discusses professional services agreements with gain-sharing clauses and related topics, including: terms and conditions, ideal characteristics of successful project candidates, suggested deal structures, recommended audit and measurement strategies, and addressing project delays. (subscription required) . . . More
Win-Win Strategies for Negotiating Consulting Fee Schedules
Monadnock Research (VI, N34) - 19 December 2008
(MR) Recent fee research from Monadnock Research and the Wellesley Hills Group indicates that firms have higher rates of 100 percent fee realization at lower levels of their professional ranks. This may actually increase overall project costs by creating an incentive to staff projects with less experienced staff and negatively impact project value. This Monadnock Research Note recommends an alternative negotiation strategy for clients to ensure that engagements deliver anticipated value on-time and on-budget. (subscription required) . . . More
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