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Clara

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8

Revenue per consultant in the consulting industry

Hey guys,

just interested to know how much annual revenues per consultant are in different stategy consulting firms, like MBB, tier 2, tier 3?

I just saw some MBB data at wikipedia, but would also be interested to know how much revenue the consultants from other consultancie can make. How does that compare to the ones of professional service providers like IBM, Capgemini, Accenture?

Thanks!

Hey guys,

just interested to know how much annual revenues per consultant are in different stategy consulting firms, like MBB, tier 2, tier 3?

I just saw some MBB data at wikipedia, but would also be interested to know how much revenue the consultants from other consultancie can make. How does that compare to the ones of professional service providers like IBM, Capgemini, Accenture?

Thanks!

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Book a coaching with Clara

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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

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

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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).

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).

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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.

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.

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.

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.

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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 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

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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

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

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

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

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

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

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