I know of firms which hire offshore programmers for $15/hr and bill the client $90/hr. (500% margin!) Of course, it helps if the client has plenty of money.
Unless this is true staff augmentation it NEVER works out to that sort of margin. Overhead creeps in if you want to grow (and you want the quality to be maintained).
I'm guessing an established firm that hires and bills at those rates would end up having 40-50% margin at the end of the day.
I'm guessing an established firm that hires and bills at those rates would end up having 40-50% margin at the end of the day.