I have a Swedish company that has been asked to work as consultants for a Swiss company. I am wondering what the normal fee / wage per day or hour is when working as a consultant in Switzerland?
The business is concept and product development with a very specialized focus. It will also involve app development for iOS and Android.
Normally in Sweden we charge about 100-150 CHF per hour for our work.
If anyone can give me an indication that would be great!
Are you working from your offices in Sweden or are you moving to Switzerland for your work? How many people will be working on this project? What would you bill someone in Sweden for this project?
My guess would be bill what you would in Sweden. Then if you need to be in Switzerland to do the work add travel and expenses. Boom. Done.
100-150 CHF is the typical hourly rate of freelance IT guys in Zurich. A consultancy rate of a "real company" can be significantly higher, it depends on how specialized your services are (and frankly how much you client is willing to pay). If you are actually a one man show is it probably the right level, more towards 150 than 100 for a short term gig like yours.
It varies greatly with technology and specialism, but a top-flight independent consultant in some sectors can command 150-200 or higher. A small consultancy 200-250, and large consultancies 300-400. That's with direct contracts, no agency cut. (All figures in CHF)
Large companies often will put a consultant into a specific bracket which sets upper and lower bounds on how much they'll pay for the perceived level of skill. One way around these restrictions typically enforced by purchasing departments, which don't take into account the fact that a good consultant may be many times more value for money than an average consultant, is to agree with the department you actually work for to work fewer hours for the standard daily rate (thereby increasing your hourly rate to something reasonable).
It depends on the work to be done, sector and location. Rates are typically higher in Bern than they are in Zurich, and surprisingly the financial sector does not pay the highest rates.
Where I work we have 7 skill levels for IT contractors. The lowest level (help desk etc .) the rates are from CHF 65.00 to 80.00, at the top level (Solution Architect/Requirements engineer) we pay CHF 120.00 to CHF 145.00 These numbers are without VAT.
For very specialized work and the occasional rock star we will pay more.
Thank you all so much! I was recomended to this forum by a friend, he told me that people usually are very helpful here...and he was right
Ok! So the rates between 150-400 are per hour and per person, depending on experience? So you suggest giving a daily price that for our team and then specify each persons rate and involvment?
That's how it typically works. I am managing a team of consultants and am incredibly lazy - so I cannot be arsed to do it. Here is my personal approach that usually works with most clients: make some table, say junior guy 130, medium level guy 170, top architect 220. And then come up with a blended rate that you suggest to use for the entire project to keep things simple: in the example something like 150 an hour for every hour of everyone involved as you will use more junior hours than architect...
How big is the Swiss company? I know large Swiss companies paying around 1800 euros a day for consultants but a smaller comapny wouldn't be likely to pay this high.
200+ is a relatively small company. The question is, are you doing consultancy work or contracting?
Consultants will make thousands a day, while contractors, particularly in IT, will get anywhere from CHF 120.- to CHF 150.- an hour. If it is very specialized then the rates go up.
Typical daily rates for IT contractors at an un-named bank (CS) is between CHF 800.- and 1000.- The other banks (and insurance) will pay a bit more.
I currently work in souring in a multinational company and deal with IT contractors every day, so have a pretty good grasp of what the rates are. My colleague deals with the consultants (McKinsey, KPMG, E&Y etc.) , and their rates are eye watering.
I know that a freelancer company in Zh Kanton is paying 60fr/h to its IT freelancer employees, but usually promises to have 40h/week min without obligation to do actually that much.
I'd agree with this, although what type of consultancy matters a lot - for development some technologies command better rates than others. So for "app development for iOS and Android" , 125 - 150 is about right (higher for native rather than multi-platform framework coding).
However for "concept and product development with a very specialized focus" it's difficult to say. Such specialized knowledge-based consultancy can command very high rates.
TBH, when you do the maths on holidays and social/pension contributions, those freelancers are better off getting a permanent job at those rates, even if it does "usually promises to have 40h/week" , TBH.
To calculate the day rate for consulting on a two to three month assignment, take the annual salary for that role in the respective locality and organisation and divide it by 100.
For example: if a project manager in Basel would earn CHF 150'000 per year in full employment, the day rate for performing that role should be CHF 1'500, with a a pro rata hourly rate.
For shorter assignments, the rate is higher, and for longer, it is lower.
This 1/100 ratio takes account of the consultant's responsibility for: paying their own social insurances, pension contributions and other; non-work time for personal development and promotion; and risk.