Professional Services (within a Software vendor) Day rates in Europe

Mark Schulze

Hi I would like to know actual day rates from Professional Services departments inside Software companies in Europe. I also would like to know average dealsize/ project size these PS departments normally do. Thanks for your support.

Alexander Ziegler

For the first part of your question: I hope I understand your question correctly: 'inside' means for you once department inside a company crosscharging another? The answer from my company is straigth forward: we're crosscharging the average loaded real costs of a consultant dependent on his band level. The term 'band' describes the seniority level based on the HR career categorization. The averages are calculated per country every 2-3 year to reflect current salaries. The term 'loaded' means that all side costs on top of the salary are included plus the costs of HR for administration all employees in this country. This algorithm is fair on one hand, as it 'just' covers the costs, but as it is based on averages it can be quite high, especially for senior employees and dependent on the country as well.

[Deleted User]

@Mark Schulze if you haven’t already participated @Bo DiMuccio’s Market Rates Study, it’s a great resource:

https://www.tsia.com/resources/professional-services-market-rates-study-summary-2019

Regarding average deal size, participating in the benchmark is the best approach to get deeper insight, but you can see the median for deal size in Bo's blog post:

https://www.tsia.com/blog/how-to-grow-professional-services-revenue

As a member of the professional services community, you can also select the "Ask a Research Executive" button here in the exchange to submit a research inquiry and discuss with further context.