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 of support)

As you can see, difference in this case is almost 150.000of 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.