A consulting firm or simply consultancy is a professional service firm that provides expert advice and training for a fee. Consulting firms may have one or more consultants to cover a broad range of spheres, for example, management, marketing, financial services, law engineering, etc. There are several reasons that a business can look for this kind of service that includes:
- Access to specialized skills and information;
- Diagnostics and drawing up of a treatment plan;
- Assistance with problem-solving and implementation of recommended solutions;
- Facilitation of client learning to resolve similar problems in the future;
- Improvement of business performance and organizational effectiveness.
Why use a consultancy firm for your business?
A consulting firm can serve as a "think tank" for your business, offering it to load up with extra years of experience and know-how. Any task that your company faces can be solved by a temporary professional third-party consultant who has the knowledge and training to help solve your company's pain and come up with new solutions that can help your company to grow and scale. Whether your company is facing legal, IT, financial, operational, sales, marketing, or corporate challenges, there is always a consultant to meet your needs. Unlike a permanent employee, who may be subject to overhead costs, such as providing benefits, or even having to supply a computer and a workspace, consultants solve the task within a certain timeframe and can be retired afterward, meaning that a company no longer incurs costs.
What is the average cost for a consultancy services?
As a rule, consulting firms, especially those operating in the upper market segments, consider their rates as one of their key competitive assets and therefore do not disclose the fee structure. By controlling their fee structure, they can minimize the threat of reputational risk, public debate, or the need to review their fees with clients. In addition, fees typically differ by region, client, and service offering. As a result, there is relatively little publicly available information on the fees charged by consultants.
The highest consulting fees are charged by Global Strategy consulting firms such as McKinsey & Company, Boston Consulting Group, Bain & Company, Strategy&, Roland Berger, and A.T. Kearney.
The mid-market fee range applies to global consulting firms such as Hay Group, Mercer and Willis Towers Watson, FTI Consulting and Navigant, and the Big Four (Deloitte, PwC, EY, and KPMG).
Global technology firms Atos, Accenture, Capgemini, and CGI, which base their business model on IT consulting services, also command good fees comparable to the Big Four.
These firms find themselves in the consultant revenue range between $150,000 and $250,000 per year. While independent contractors that make up a large group of self-employed consultants have an annual fee income of less than $50,000 per year.
On average, service fees can vary widely, from $100 an hour for a temporary consultant to $1,200 for a consultant from a leading consulting firm. In essence, there is no cap on the hourly rate consultants can charge (with some exceptions in the public sector). Therefore, they have the right to charge as much as they think they are worth and as much as the market can bear.
Explore at Finscanner Marketplace
Finding the right consultancy firm may be the most difficult part. You should search for a firm that has expertise in your industry or experience with the kinds of problems your business faces. Also, make sure they have solid referrals. In addition, you should vet the consultancy firm through all necessary certifications that are relevant to your industry and make sure you are comfortable with their fees.
Looking for a professional consultancy firm? Pay attention to the Finscanner marketplace — a reliable place to find hundreds of services for your business needs. With our expert knowledge and extensive data, you can get access to a wide range of companies in no time.
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