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by candiddevmike 615 days ago
The economics of consulting are pretty raw: they basically arbitrage the hourly rate of folks. They pay you X and then bill you for X*1.3 (minimum). Folks are starting to realize they could just go direct to the customer, and the recent non-compete uncertainty has made a dent in the quality of talent these places have on their bench. Not to mention most of the talent at these shops are just window dressing for cheap offshore labor that actually does the work with mixed results.
2 comments

More likely they pay you X and they charge 3X, but yes I agree.
I’m pretty sure my average multiple is 6x
3x is standard, you should push for a 2x raise. You might have to jump ship twice to do that