| Topic Name: |
Return to Consulting or Industry? |
| Message Name: |
Thank you |
| Date Posted: |
01/18/2002 |
| In Reply To: |
A 25% premium (75k vs 60k) is not sufficient for you to go into independent contracting vs large firm consulting. From that limited premium, you have to pay helath insurance, *both* sides of FICA, etc. ... those two items alone make the 75 independent almost identical to 60 corporate.
Add to that, the fact that you ought to build in 25-50% premium for potential downtime and/or end-of-contract risk, and the KPMG gig seems a much better deal.
The only case in which I would say going independent at a rate which will give you $75 k annually, is *if* you honestly believed that you would be able to raise you rate to something like "double" in the space of two years.
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Personally, I believe, given that you have only 1.5 years experience, you will do much better to go to KPMG ... continue to keep up on the technical aspects of your carer, but also start to take on more significant project management roles (which you would not have had at 1.5 years).
After 2-3 years at KPMG, vs 2-3 years as an independent contractor
- you will be a stronger candidate for other big-firm and/or boutique consulting jobs
- you will be a stronger candidate, with higher rates possible, as an independent
- in general, you will be positioned to be (more like) an independent IT *consultant*, as opposed to an independent IT *contractor* after 2-3 years
- moreover, the economics of the two paths as similar for the immediate two years (in fact, I think KPMG actully dominates after you net out health ins, FICA and downtime)
So, the short term economics of the KPMG offers are similar or better ... and the options at 2-3 years out are better as well. The KPMG offer seems to be a dominant strategy, vs the specific independent gig you describe.
Good luck in your decision.
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| Message: |
First and foremost, than you very much for taking time to answer my questions with such detail and courtesy. I sincerely appreciate your efforts.
Well, I have yet to decide the next stage of my career but I am leaning towards moving onto the Fortune 100 size retailer, rather than KPMG Consulting for several reasons.
1) The industry in a state of flux and it's becoming more clear that the value added is not quite as it used to be for the dollar. Big 5 firms are discounting their services dramatically (Under estimating projects = Insane hours). Most friends that weren't canned at Accenture are either on the bench or looking for new employment. Fortune 500 firms know that there is talent out on the street and are less inclined to spend cash at the large consulting firms.
2) Consulting has and always will be about using the methodologies at hand, as oppose to understanding the framework of a certain industry and company. How much financial service knowledge does a junior consultant gain compared to actually working at a financial services firm. Not much in terms of industry knowledge, at least with the BIG 5.
3) Big 5 type BS. I have some friends that were recently "riffed" because they didn't make their 90% chargeability number at the consultant level. However, they are not the ones selling work. I have been unemployed 6 months now and don't want this to happen again for quite sometime.
I still need to sleep on some things but it is becoming clear that the extra 2-3 years at KPMG Consulting may or may not help me land a better career within my industry.
Please post your thoughts when time permits. I am ALWAYS looking for another point of view and educated response.
Thank you "economic/strategist"
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