Everything You Need to Know About IT Consulting Hourly Rates In 2022

IT consulting is rapidly growing, and experts are in high demand. But how much does IT consulting cost?

IT consulting hourly rates

If you’re looking to get in touch with an IT consultant, you should already be aware of multiple variables affecting your final hourly rate, including the location, size, and staff expertise of the consulting firm.  That’s why we’ve put together this post estimating average IT Consulting Hourly Rates in 2022 to help give you an idea of what to expect from different firms across the globe.

Let’s get started!

Why Do You Need IT Consultancy?

With the help of IT consultancy, you can take your business to the next level.

IT consultancy can help you assess your needs, design your ideal solution and ensure everything goes smoothly once the new technology has been implemented into your business.

“If things didn’t work out last year doing them a certain way, you should hire someone who has done it before to teach you how to do it this year. This is the secret of high achievers.”

― Richie Norton


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Here are the top reasons determining why you need IT consultancy for your business: 

it consulting needed

Saves Time & Money

IT consulting is a great way to save time and money. When you hire an IT consultant, they can take care of the day-to-day tasks that your in-house staff cannot handle. 

It can save you money by eliminating the requirement for a large IT staff. They have everything you need in one place, including experts available to troubleshoot any potential problems.

A consultant is someone who saves his client almost enough to pay his fee.

Arnold H. Glasow


Read Also: Finally Revealed: Top Business Benefits of IT Consulting Services


Better Solutions

IT consultancies provide a broad range of services to their clients. These include project management, software development, and training. With so many benefits and experience, it’s easy for them to find the right solution for your needs. 

Whether you need a quick fix or want to develop an in-depth plan, they can always help you in a better way.

Instant Expert Help

IT Consultancy is a great way to get expert advice on managing your IT systems. Getting expert help who understands important technical aspects will give you peace of mind and allow you to concentrate on your company’s growth.

Different Perspectives

Different perspectives are also a great way to ensure you’re not missing any potential pitfalls with your plan. While you may think of your business as the best thing, someone else might notice something that can help you turn it into an even better idea.

Factors Influencing IT Consulting Hourly Rates

IT consulting hourly rates vary depending on the services and requirements of the company, but several factors can impact the final rates, including: 

  • Geographic location where the work will be done.
  • Consultant’s experience and credentials 
  • Experience and skills of IT consultant 
  • Recurring or one-time engagement
  • Length and complexity of the project
  • Project Timeline

How Much Do IT Companies Ask for Consulting Services?

With so many consulting businesses, it can be hard to estimate the average charges. Let’s explore how much IT consulting companies of various sizes charge for providing consultancy.

Size Hourly Rate
Small-sized Firms $75 – $175
Medium-sized Firms $125 – $175
Large-sized Firms $200 – $300
Enterprise-level Firms $250 – $850

Small-Sized Firms

Small IT consulting companies often have limited in-house staff members. Software developers at small-sized firms often work for a startup and small and regional businesses and apply personalized approaches to the software development process. 

Among small-scale IT consultants, service rates typically range between $75 and $175 per hour.

Medium-Sized Firms

Medium-sized IT management consulting firms work with companies of different sizes. The software project size may range from $50,000 to $ 5 million. The consultation fee starts at $125 but can rise up to $175 per hour

Large-Sized Firms

When talking about large-sized IT firms, have around 100 to 1000 IT professionals. For projects ranging from $125,000 to $5 million, they charge between $200 and $300.

Enterprise-Level Firms

Enterprise consultants cover a wide variety of industries. Government organizations and fortune 500 companies often employ them to serve high-level expertise. IT professionals typically charge $250-$850 an hour at this level.

IT Consulting Hourly Rate by Industry Type

IT consulting rates can differ drastically depending on your industry type. Knowing the average rates of IT consulting by industry type will help you understand what you should expect to pay. 

The following section sheds light on the IT consulting rate averages by industry type so that you’ll be better prepared to negotiate the costs of your next contract with an IT consulting company.

Industry Type Average Hourly Rate
Freelance Consultants $100 – $300
Fledgling Consultants $25 – $50
Outsource IT Consultants $25 – $75

Freelance Consultants

There are several freelancers out there to choose from with different skills and experience. The majority of developers move to consult positions after 10+ years of experience. In the case of seasoned IT geeks with multiple specializations, the hourly rate may range between $100 and $300

Even IT consultants sometimes need to hire freelance consultants when they lack expertise.

Fledgling Consultants

Internships and support positions are popular ways for IT novices to gain experience and practice working with experienced professionals. To establish themselves in the industry, they work for around $25 to $50 per hour

Outsource IT Consultants

Fledgling IT consultants operate all around the world. Let’s use the example of hiring an offshore/onshore IT consultant. These individuals work on your project remotely, so you can choose who you work with more carefully. 

In this type of consulting service, charges may range from $25 to $75 per hour, depending on the consultant’s location. 

According to Glassdoors, Java consultants earn an average of $40 per hour. Reports by ZipRecruiter claim that Java consultants in the USA charge $62/hr. On the other hand, the average hourly rate for C# consultants is $30-$50. 

pay by experience level

IT Consulting Rate by Region

It’s not just a region – consulting rates by industry and technology vary too. For instance, the US leads the IT consulting market in terms of services due to investment in CRM, ERP, IoT, Machine Learning, and data analytics. Thus, the US consultants charge $100-$250, the highest IT consulting fees per hour.

According to Glassdoor, Java consultants receive an average of $40 per hour ($79,137 per year), but according to ZipRecruiter, they are paid $62 per hour in the United States.

US software consulting market

Here’s a consolidated list of IT consulting rates by region. 

Country 

Average IT consulting rate/h

United States

$100-$175

Canada

$100-$130

Western Europe

$100-$150

Australia

$80-$120

Latin America

$25-$50

Eastern Europe

$25-$50

Asia

$20-$40

India

$20-$30

Pricing Structure for IT Consulting 

Lastly, the consulting fees also depend on the consulting model you choose. The following IT consultation billing strategies are available to make it flexible for clients.

Value-Based

The system is a little complicated as the IT consultant’s payment is based on the result’s value. A rate is fixed based on the tangible value of the project rather than an hourly rate. A high-level IT consultant charges 10% of the project value they work on. The pricing model is high-level and expensive.

Hourly or Daily Rate

Your project will be charged based on the number of hours the IT firm spends working on it. IT consultants usually work 12 to 14 hours daily, costing around $1,500 to $3000. Their hourly rate may change drastically based on their expertise and location. However, it is considered more flexible than a fixed price. 

The image below depicts the pricing strategies commonly used by IT Consultants to set their fees.

how consultant set their fees

Project-Based 

Here, the consultant does the project within the given deadline. You and the IT consultancy firm simultaneously set the final price for the entire project. In this case, you will know the charges in advance, although it may not be as simple as the hourly model.


Also Read – Types of IT Outsourcing Models: How to Choose the Best One?


Why Should You go for an IT Consulting Service?

Here are five great reasons to get on board and use this valuable service!

IT Consulting hourly rates

Leverage the Expertise of an Outside Firm

You’re busy running your business but don’t have the resources to hire an in-house team. Outsourcing your IT needs can be a big benefit, especially if you want to focus on other parts of the business or if you need help with a complex project that could take up all your time.

Focus On Your Core Competency

When you have a new business, and you’re not quite sure what your focus should be, it can be helpful to hire an IT consultant. They can help you focus on your company’s unique benefits, and they’ll be able to point out opportunities you might have missed. 

It doesn’t matter if your company is large or small; an IT consultant can work with both businesses to create strategies to help them grow.

Expand Your Offerings 

As a business owner, you want to provide your customers with the best possible services. However, you often don’t have the in-house knowledge or resources needed. So, this is where outsourcing comes in handy. 

Outsourcing IT consultancy allows your company to focus on what it does best while an outside expert handles all of the other tasks.

Receive Impartial Advice

IT consulting is an invaluable service if you’re trying to up your business game. The expert advice that an IT consultant can offer will allow you to make more informed decisions regarding critical business issues such as technology, security, and infrastructure.

Problem Solving

For many businesses, the major problem is that they don’t have the resources to keep up with the latest advancements in technology. IT consulting services offer a range of services, from hardware installation and maintenance to software upgrades and troubleshooting. 

By outsourcing your IT needs to an experienced company, you will be able to focus on what you do best.

How Can You Get Started?

If you’re thinking how to get started with calculating your hourly rate, you’ll want to do some research. Start by looking at what other freelancers and consultants are charging. Then, consider your unique circumstances – including the type of work you do and your experience level. 

For example, if you’re more experienced than most people on the market, charge higher rates. If the work is time-consuming and complex, it’s also worth charging more per hour.

Why PixelCrayons As Your IT Consulting Company?

Having a business is more than just having a product or service. It’s about providing the best possible solution for your customers’ needs and desires, which means that you may need to outsource some aspects of your business, such as IT consulting. That’s where we come in! 

We are a leading IT consulting company successfully providing IT Consulting services & business solutions to startups and businesses. We’ll work with you to ensure that your technology performs at its best and provides the best customer experience.

With a great team of highly experienced and professional developers, we are dedicated to delivering the best IT solutions to our clients. 

Get in touch with us to align your business with the best tech approaches and create successful software projects reasonably priced. 

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