Building Project Team from Client's Resources
There can be significant difference between hiring team from consulting company
and using own team with expert consultant only. Following simple calculation
shows example of such difference.
Lets assume daily cost of employee 130€, daily cost of junior consultant 600€,
daily cost of an expert consultant 800€, project team consisting of 3 people
(junior consultants or employees) and 1 expert consultant, duration of project
4 months and post-implementation support 8 months.
Team consisting from own resources plus hired expert consultant
Hiring cost: 3 people x 2 months salary x 130€ per day = 15.600€
4 months implementation, staff: 80 days x 3 people x 130€ per day = 31.200€
4 months implementation, expert: 80 days x 1 person x 800€ per day = 64.000€
8 months support, staff full time: 160 days x 3 people x 130€ per day = 62.000€
8 months support, senior consultant, 31%: 50 days x 800€ per day = 40.000€
*** TOTAL *** 213.000€ first year
Team consisting from all purchased consultants
4 months implementation: 80 days x (800€ per day expert + 3x600€ per day junior
consultant) = 208.000€
8 months support: 70 days x 800€ per day per senior consultant (44%) + 160
days x 600€ per day per one junior consultant (fulltime) = 152.000€
*** TOTAL *** 360.000€ first year
(assumed that internal staff needs little more external support when
not involved in implementation - usually need for support is greatly higher.
Also in first case is 530 mandays of support, in second case only 230 mandays
As you can see, difference in this case is almost 150.000€of savings
when using own hired resources with twice as much of post-implementation support.
It even may not be necessary to hire new people, because support of legacy
system can be re-trained. Therefore savings could actually be much higher.