IT technologies evolve at a pace that companies need help to cope with. New software updates or trends are released within weeks or months, widening organizations' technological gap. Business owners turn to IT consultants to align their IT implementations with changing dynamics in software technologies whom they pay up to hundreds of dollars per hour.
The question is, how much should your business pay for IT consulting? What is the average hourly rate for an IT consultant?
In this article, I’ll compare different software consulting rates and explore factors influencing technology consultant fees.
IT Consulting: What Does It Mean?
IT consulting is a process where software experts address your specific IT needs with carefully-drawn plans, strategies, tactical implementations, and follow-ups. An IT consultant is a highly-experienced software expert with expertise and in-depth knowledge of specific fields. They are independent contractors or may work with IT firms specializing in consulting services.
An IT consultant will guide your business through some IT processes, such as:
- Turning business requirements into detailed software specifications;
- Recommending suitable technologies and IT workflow to suit your organization;
- Providing accurate cost estimates and timelines for software development;
- Augmenting your IT team with external software experts;
- Resolving technical problems that arise in your IT infrastructure.
IT consultation is in high demand, with global market revenue expected to hit $82 billion in 2027, a 26% growth compared to 2023. Even if you’re not adopting next-generational technologies in your business, securing IT consultation services help to ensure that your software and IT workflow are in proper order. An IT consultant gives your business more options and agility to grow and compete.
Whether you have an in-house IT team or not, you benefit from IT consulting. If you’re a startup owner with no technical experience, IT consultants can connect you with software teams they’ve worked with. Even if you’re a mid-sized business with an in-house IT team, a consultant offers knowledge your IT specialists might find helpful.
IT Consulting Rates: 6 Factors That Make Up The Price
Listing a standard IT consultation rate is difficult because several factors determine how a software consultant would charge.
Consultant’s skill and experience
Software consultants with skills honed through decades of experience will command a higher rate than those who recently took up consulting practices. Likewise, software experts specializing in niche and in-demand skills or tech stacks will likely charge more than their counterparts. For example, Uptech is driven by a team of highly-skilled software experts. With 7 years of experience in a fast-changing marketplace, we provide various IT services, including mobile & web applications development, UI/UX design, QA, and project management.
Project complexities
Projects with multiple features require substantial analysis before consultants can offer feedback. Hence, you’ll pay more when consulting on complex projects such as developing a full-featured multiplatform ride-hailing app with secure cloud storage and backend. On the other hand, the consultant might charge a lesser fee for a simple note-taking app.
Uptech’s experience in different niches is helpful when managing both simple and complex projects in different industries. For example, we’ve been supporting GOAT, a global retail platform, since 2019. Also, our work with Cardless, Eatable, and Aspiration proves we’re capable of delivering well-designed solutions for different markets.
Company size
IT consulting fees vary when choosing between consulting firms of different sizes. Freelance contractors typically offer a lower rate as they have a minimum operating cost. Medium firms charge higher, but fees from large consulting companies that global enterprise turn are potentially steep. Our team borders around 100 professionals, which includes:
- Designers;
- Developers;
- QAs;
- Product Managers.
Industry
Some industries require strict regulatory compliance when setting up IT systems, which results in pricier consulting fees. For example, healthcare app development must follow HIPAA requirements, which limits your options to specific software consultants. Uptech’s experience stretches across multiple industries, including:
Location
The hourly rate for IT consultants is often higher in countries with a higher cost of living. On the other hand, software consultant hourly rates are lower in some popular outsourcing destinations.
Timeline
If you’re contracting an IT consultant to complete a project with urgent deliverables, you must pay a premium fee. IT consultants are more flexible in their fees when taking on projects without strict deadlines.
IT Consulting Rates by Country
The average hourly rate for IT consultants differs in countries. If you’re contracting a software consultant in the US, the hourly rate averages $100-200, but be prepared to pay up to $300+ per hour. However, a contributor on Hubspot suggested $100 per hour as the minimum rate for IT consultants.
In the UK, technical consultants charge an average of $100-150 per hour.
Known for their lower fees, software consultants in Asian countries usually come at a more affordable rate. Indian IT consultants charge $25-100 per hour, while their Chinese counterparts average $50-150 per hour. While Asian countries offer cheaper consultation rates, language, and cultural differences might hamper collaboration.
With hih consulting prices and language barriers on both spectrums, businesses focus on firms in Eastern Europe. For example, tech consultants in Poland and Ukraine charge an average hourly rate of $50-100. This allows companies to enjoy an affordable rate, top-notch consultations, and a seamless collaboration experience.
For example, clients choose Uptech because of its international presence. Our team members are stationed across Asia, Eastern, and Western Europe. This allows us to provide an affordable consulting rate between $25 to $49 per hour.
IT Consulting Rates by Industry
As mentioned, software consulting fees may differ according to industry. Businesses in industries regulated by strict requirements are expected to pay more when seeking professional software advice. Likewise, consultation fees are more affordable if you’re involved in commercial activities with fewer restrictions.
I’ll share several examples to demonstrate the price variance in different industries. To provide a fairer picture, let’s assume that all consultants charge premium rates and are based in the US.
Healthcare
Medical-related businesses require IT infrastructure that safeguards patients' data and transactions. An experienced consultant in this industry may charge $300 per hour or more to render their service. One of our projects in this space is a mental health app that allows users to get psychological support effortlessly where they are.
Finance
Companies operating in this industry are also bound by numerous regulations to provide secure transactions and data storage. The consultant may charge premium fees of around $300 or more for each hour. when advising such companies. Our team has adequate experience in this tightly-regulated industry, having built a Neobank, Green investment, and the Cardless app.
Want to build a fintech app that stands out?
Check our expert guide!
Foodtech
Digitization has taken the food industry to the cloud. Instead of queuing up at restaurants, diners prefer ordering from apps. And chefs could start a food delivery business by sharing a cloud kitchen instead of renting their own spaces. Our recent work with Eatable is proof of the increasing demand for online food apps. Such demands have seen IT consulting in this sector average $200 per hour.
eCommerce
eCommerce involves deploying software modules to support the customer journey at each interaction point. It also involves backend solutions, such as integrations and logistics. To advise such implementations, tech consultants may charge anything from $250 per hour. Throughout the years, we’ve completed several eCommerce projects, including Dollar Shave Club and GOAT. We demonstrated our capability to align the eCommerce apps with the right audience in those projects.
Real Estate
The real estate sector requires a suite of software systems to operate. However, it is less rigid than the healthcare or finance industry. Thus, IT consultants specializing in retail may offer their service for $100 to $250 per hour. Some of our best works in this space are Nomad and Yaza, which brings allows agents and homebuyers to interact more efficiently with innovative features.
Here're 5 key steps to develop a competitive mobile real estate app!
IT Consulting Rates by Company’s Size
You pay different consulting prices when working with firms of different sizes. Small and independent contractors charge a more affordable rate as they seek to secure more jobs and strengthen their portfolios. Bigger firms used to dealing with global enterprises are more costly but are capable of handling complex technological infrastructure.
Here’s an example of fee structure according to size.
- A freelance IT consultant bills between $12 to $30 per hour.
- Small tech consulting firms with less than 40 employees charge up to $99 per hour.
- Medium-sized consulting companies charge up to $200 per hour or more.
- Large IT consulting firms with over 1,000 employees charge an average of $300 per hour.
The above figures are derived from Upwork and Clutch. They serve as general indications with more factors in play.
IT Consultant Rates by Experience Level
As software consultants upskill or complete more projects, they raise their prices to reflect their experiences. For example:
- An IT consultant with 1-4 years experience in the field bills $54 per hour max;
- With 5-9 years of experience, consultants might charge up to $75 per hour;
- Experienced IT consultants with over 10 years in the trade charge about $111 per hour.
Tech consultants may also impose a higher fee if they specialize in certain skills. For example, a senior cloud consultant in Australia could earn up to $89 per hour or more, while security consultants charge up to $105 per hour.
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What Is the Hourly Rate For IT Consulting at Uptech
Uptech is a leading software development company in Eastern Europe that provides IT consulting services to international clients. Our hourly rate varies between $45 - $65 depending on project complexities and other factors. More importantly, our team has an exemplary track record when implementing app development strategies for startups and businesses.
These are some of our works that span across industries.
- Dollar Shave Club (eCommerce)
- Cardless (Fintech)
- Nomad (Real Estate)
- Eatable (Foodtech)
- Sprent (Delivery)
For 7 years and counting, we’ve been providing top-quality IT consulting and implementation to clients worldwide. Our expertise includes a wide range of tech stacks that companies need to support their digital transformation efforts. For example, our backend engineers are proficient in Node.js and Typescript, while our frontend developers code with JavaScript, HTML5, and CSS3.
Equipped with an agile mindset, our team uses tools that support DevOps culture and allows us to build reliable and scalable cloud solutions. Our work didn’t go unnoticed, as Uptech bagged several awards, including.
- Top B2B companies 2020 - 2022 by Clutch.
- Top app Developer by GoodFirms
- Mobile Excellence Award and Honorable Mention by Awwwards
But don’t just take our word. Here are what our clients said about partnering with Uptech.
“They ask questions, provide suggestions, and learn about our business in order to make a proper product." - CoFounder, Eatable
"We were working with a 9-hour time difference, but communication was never an issue." - Product Manager, Cardless
"We don’t have to deal with bugs and problems with the code. They’re a real value-add." - CEO, Yaza
Conclusion
IT consultation has helped numerous businesses overcome software challenges and adopt the latest technological practices. Securing such services might cost varying prices as they are influenced by factors I’ve mentioned. That said, businesses opt for Eastern European tech consultants to benefit from price, shared working culture, and skills.
Talk to us to get the best consulting rate and implement your IT solution.
FAQs
What is the average hourly rate for an IT consultant?
The average IT consulting rate varies according to several factors. Generally, companies pay a low figure of $45 per hour to more than $300 per hour when engaging an IT consultant.
What makes up the average hourly rate for IT consulting?
IT consulting fee is influenced by the consultant’s experience, skill, and location. Besides, the nature of your project, complexity, and urgency also affect the final rate.
What are the average IT consulting rates by industry?
Average fees charged by consultants might range between $45 to $300 per hour, depending on industries. Consulting works in the health and finance sectors tends to cost more because of rigid regulatory requirements.