Are IT Consulting Rates Stagnating?

Do you feel like your IT consulting rates have been rather stagnant in recent years? Many IT consultants have found it hard to increase their rates lately, and there are a few clear reasons why this is the case. This article explores those reasons.

1. Global Recession - The global economic crisis shows little sign of abating, and in this kind of financial climate, nobody is likely to look kindly upon those increasing their IT consulting rates. The situation is no different for individuals employed by companies; many people have experienced salary freezes recently. With less money to go around, competitive pricing has never been so important.

2. New Competition - Another side effect of the economic crisis is that many large companies have laid off huge numbers of staff. In the absence of other job vacancies, some skilled people have set up on their own, and they are keen to attract clients - which means keeping their rates low. These people are now your new competition.

3. Cloud Services - Cloud services like Microsoft Office 365 and Google Apps have given SMEs more options as to how to set up their IT provision, and new businesses with some internal technical knowledge can now get a workable infrastructure up and running with less specialist help.

If you’re keen to increase your IT consulting rates, you need to be smart about how you do it. Most importantly, be aware of your competition; while you may not be prepared to work for a certain hourly rate, you can be sure that your clients won’t have to look too hard to find someone who is.

Do you feel that your IT consulting rates have remained stagnant lately? Share your views in the Comments box below. 

And to follow-through on the tips introduced in this short article, be sure to download your free copy of the special report on How to Start a Computer Consulting Business: 6 Proven Ways to Build Your Initial Client Base. 

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