Revenue per consultant in the consulting industry

Hello!

I don´t think anyone will be able to give you the specifics -1st of all since it´s difficult to know, and if you do, you would be sharing very sensitive information, something that is never going to happen in a forum-. 

The way it´s calculated is per headcount, and the different tenures have a different price. Then, it´s a simple P X Q in terms of people and days. 

Cheers, 

Clara

At Kearney, this is also not public data. What I can share is that the revenues per consultant vary much depending on the region. This is first of all because utilization is higher in certain regions and secondly when there is a lack of local talent fees tend to be higher (for all firms). A good proxy is to look at salaries on Glassdoor. It doesn't provide you with a great answer on revenue but it does indicate the differences per region. 

Hi There,

First of all, I don't think those MBB numbers in Wikipedia is valid. Secondly, to answer your question - professional fees of IBM/Capgemini/Accenture in emerging markets can go as high as 5-8x MBB (at the same level).

Consulting contracts are usually fixed-fee, built up from some set of X consultants by Y days.  The more senior the consultant, the more their daily rate, so partners can easily be 10,000 per day (though they only spent a few hours at a time on a given case). Expenses are usually added on at the end, say 10% of the contract.

For top tier in the US, I'd say junior consultants bill for 2,500 per day and upward from that. Manager level is around 6k. Note this is the rack rate, where usually firms give some "discount" on their fee in the initial proposal. Bigger implementation-type IT or HR firms like Deloitte would be 30-50% less than this. It also varies by industry - banks and financial service firms are willing to pay more than retailers, for example.

MBB can charge even 4x higher than Capgemini, Accenture, ...

Hello,

It's not a public data, since fares of consulting companies have a strong strategic role for winning new projects. Just to give you an idea, however, a new hire could be paid some thousands of euros per day (depending on the country), which is far higher than Big4 or service providers.

Best,
Luca

Hi there,

The rate card is confidential information that shouldn't be shared by any consulting firm employees or even alum. The actual revenue could vary depending on the specific project, how much competition during pitching round, whether it is an "investment" for building new client platform etc. 

In general higher tier firms charge a lot more than lower tier firms, e.g. could be 2x, 3x...

best,

Emily

Hi A,


Well. It mostly depends on the region rate and on the company. I would say that in Germany for example, daily rates for MBB consultancy might be 2.5-3 K Euro per day, while for Tier-1 companies like RB, Kearney, Oliver Wyman is 2K Euro per day. Boutique companies can also offer high rates 1.5-2.0K. Other firms like Accenture and Big4 companies have lower rates for the entry position consultancy, 1.2-1.8K Euros per day.

Then you can multiply it by roughly up to 200 productive days, which excludes your trainings and vocational days, so your working and chargeable days multiplies with your utilization rates 0.9-0.95 and you will get your turnover per year. 

Hope it clears up the situation!

Good luck,

André

They can be very different, as not only fees per consultant are different, but also the type of projects and team composition can be very different. This is depends a lot on country.

Having said this… revenues per consultant in STRATEGY consulting are very different from IMPLEMENTATION consulting, particularly if it is IT.

One is about selling a solution to a complex problem and clients decide based on potential value created, the other is about selling man-hours and clients decide based on cost. So VERY DIFFERENT business models.

I gave 2 types of extreme situations. You can have implementation work at MBB, and there's a lot of “value add” in other consultancies. But the mix you have determines different economics in revenue per consultant (and also differences on much you get paid, how you are staffed, internal processes, etc.).