increase your understanding of sap consulting rates
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Are you a SAP Consultant wondering what the current market rates are for SAP Consultants? Are you a SAP Customer looking to hire a SAP consultant but not sure what the market rates are? In our presentation SAP Consultant rates, we walk you through some of the most critical factors that influence and determine the SAP consulting rate, show you recommendation for the staffing model that makes sense and give you an understanding of the complexities of the SAP Consulting landscape.TRANSCRIPT
- 1. Understanding SAPConsulting RatesA Presentation of:SAP BW Consulting, [email protected]
2. Everybody Wants to be aSAP ConsultantCompanies who need a SAP consultants are usuallyfaced with a shortage of SAP consultantsIt is said that Demand will create its own Supply. 3. There is No Excess SupplySAP Consultant Rates, whether they are SAPIndependent Consultant Rates or based on a SAPaverage consulting salary, have not created asituation of excess supply.Why is it unlikely to change anytime soon? 4. There is Excess DemandBut Companies are Squeezed for DollarsDespite Claims to the Contrary, Not a Lot of CashLaying Around 5. SAP K Ratings AreSubjective!Consultant Skill Rating and Ranking System Developedby SAPIs an Extremely Subjective Rating SystemWhat the Market Will BearThere is an on-going struggle between the SAP contractrate vs. salary rate 6. Lack of Understanding!Different Employment ModelsC2C or Corp-to-Corp1099 Independent ContractorW2Many others Globally with Huge Tax Implications 7. Self-Employment Tax!Some consultants do not realize that when working ona 1099, they must pay their Self Employment Tax usingthe 1040SE, (Self Employment) tax.That this also is applied toward their social securitypayments.Other countries have other complexities 8. Perception of Rate Pressure!There is false perception of an on-going downwardpressure on consulting pay rates.At least that is what you may hear in the market. 9. Your Rate Depends On!Your SAP rate, as an independent or salaried SAPconsultant, depends upon you keeping your skill setsup-to-date.Do You Have an Annual Training Plan?Are You Budgeting for It?Are You Improving Yourself? 10. From A Sap Client Perspective,Consultant Rates Always Seem High!They are, in fact, not going down, nor will they. Why?Training: SAP is not reducing the cost nor actuallyable to increase the value of their training.Experience: Good consultants become greatconsultants with experience, sometimes. 11. What Shapes SapConsultant Pay Expectations!Consultant average salary levels , especially in new areas,like SAP HANA, recently acquired products, like the entireSAP Business Objects portfolio, and in other shortageareas, tend to run higher.SAP has limited to no ability to predict the type andquantity of consultants they will need, by geography,when you talk about time horizons beyond 1 year or evenless. 12. What Shapes SapConsultant Pay Expectations!False Commoditization of Skillsets: Though you willhear that skills like SAP FICO or MM are largelycommoditized, we don't see it. In fact, good onescommand top rates and always have. 13. Number One Client RequirementOf Sap Consultants?!Almost all customers that we are working with have, astheir number one consultant skill requirement, theability to communicate in English at the native level.Seems like a basic, assumed requirement, but themarket has suffered by the absence of this skill andnow it is front and center. 14. SAP BW Skills Required Of ATop Gun SAP BW ConsultantAs you can see from the spider chart,the most effective SAP BWconsultants (the ones who will finishyour project on schedule and notcause you project delays, redo's, do-oversor burn through your budget)are:!Consultants with the most experienceConsultants who are On-Site 15. THEY ARE ALSO THE MOSTEXPENSIVE AND FOR GOOD REASON They have demonstrated the ability to deliver andthe market has rewarded them for that.! A consultant with any weaknesses in theirknowledge or experience related to the areas abovewill most likely not be able to do the work requiredof them.! This does not mean they can not learn 16. We Learn And Expand OurKnowledge On Every Project It means they will have to take the time while on yourproject to learn the your material, tools andtechniques which will extend your project time line.! This is simply the cost of doing a project. Budget forit and move on.! For example, you can not learn ABAP overnight inyour hotel room or pick it up from SDN.! 17. Missing Experience CanCause Project Failure Two heads may be better than one, but they costtwice as much.! SAP BW technical interview questions in any of theareas above will soon uncover those candidateswho are qualified and those who are not. 18. Our Teams And Results We have Offshore teams, We have Remote Development teams We have On-Site teams. On our IT Staffing Service side, we do Perm andDirect Hire placements. The On-Site model by far has been the mosteffective 19. Our Recommendations We recommend that you always hire the mostexperienced person you can find and that the workbe done on-site. You will pay a little more money for their expertisebut it is money well spent or perhaps invested. It's like paying a little more money for the best car onthe road. You get better quality, you get better workmanship,you get better results and you get a betterexperience. 20. Get SAP Consulting Rates -2014 We Survey the Market Annually So You Wont Have to Guess 21. Powered bySAPBWConsulting, Inc.Lonnie D. Ayers, PMP, SCMPresident, SAP BW Consulting, Inc.Tel: 812-340-5581E-Mail:[email protected]