Working for a consultancy - pros/cons?

[LondonManc]

Consultancy can be seen as a halfway house and you need to consider the pros and cons compared to both "normal" perm and contracting.

Compared to normal perm:
Pros
Generally better rate
more variety
latest training (especially with technical consultancies)
greater range of experience
better route to senior management long term

Cons
If you're not outgoing, you're screwed
You have no control over your intraweek social life - I knew one consultant who had to quit his darts team because he couldn't predict where he'd be week-to-week
Pressure from both sides - hard sell from bosses versus delivery from client
What you believe to be the right thing to do may not be the correct thing to do (see previous comment)

Compared to contracting:
Pros
Regular income
Training
Other permie benefits - sick pay, holidays, etc.
No liable expenses
No accounting tasks, tax issues, etc.

Cons
Being somebody else's bitch
Little say in the projects and locations
Lower pay - £50k perm = £65-70k consultant = £450/day contract
Harder exit from toxic projects

There are probably more things that others can add but I'd always compare them that way.

15% is nothing to flinch over. 250-300% was how much I boasted my permie income by when moving to contract gig. Did not realise how much my employer was taking the...

The OP is talking about consulting, not contracting. Big difference.

[jbond007]

Apologies if this topic has been raised already , I did a quick search and could not find what I am looking for.
I am working as a permanent employee in a bank and have been thinking about going contracting for some time. Due to the mortgage application and not having enough money in war chest I can't dive in into contracting yet. I decided to carry on working as permanent for a couple of years and do the jump later on if I still feel like it.
As I was looking for a new job, I have been approached by a consultancy and they offered very attractive package, over 15% more than I make now. Their client and type of work is very similar to what I do now. They subcontract me for a bank and I work as a permanent employee for this consultancy. For me it looks like a good first step towards going contract.

What should I look out for? I understand that I would need to read contract papers very carefully to catch out things like overtime, notice period, pension ( pension is much smaller AFAIK).
What other things are different when working as a 'proper' employee and being subcontracted by a consultancy?

I would check out their bonus structure. If you get in at a senior level (above basic consultant level), they should offer you a bonus based on your billable days. You should try and negotiate that into your contract if you haven't already done so.

[MrMarkyMark]

I see no advantage.

I have worked with a lot of these perm consultants.

They are often working away from home - so it's a young mans game.

They do long hours- often there is high pressure to advance the consultancy within the bank, so you can be under pressure from your consultancy bosses as well as the bank bosses (even more so). And late nights are often followed by drinking with other consultants afterwards. A lot of adultery goes on between peer consultants away from home.

You probably cannot return to a client as a contractor for a year after working there for the consultancy.

Some of them pocket their daily food "per diem" (I think it's called) and live very frugally while on a job. That's how they make their money.

In most cases that is true, however, in some cases the consultancy may "gift" a few to a client, especially if it follows they will get a chance to get more bodies on site.

[LondonManc]

I've contracted with a couple of consultancies and can back some of this up. As a contractor, the minute they can't bill you out they want you off site. You are a permy in terms of your employment status, but you are sort of second league contractor to the client. The client knows you aren't getting that massive fee, so they do back off on the green eye sort of stuff, 9 to 5, no remote working etc..

I would say, if you are leaning towards contracting, but are not ready for the leap into it, definitely have a go. I've seen consultants land quite senior permy roles, so if that doesn't seem to be panning out, then going contracting would be a viable option as well.

Some advice.
- Sod the bonus, focus on the points below.
- With the 15% extra make sure you are getting a better/more senior role than you currently hold.
- Ask about promotion and what your career path would be for the role - This should lead up to a discussion about training. This has to be one of your prime objectives to get Prince 2 / ITIL / CMMI / TOGAF etc .. .on your CV and under your belt.

If you do take the role, keep a firm eye on when/what your objectives are and when the training will be delivered.

No point slogging your guts out and not get something out of it for yourself.

+1 It's certainly a good step in the day-to-day lifestyle of contracting - client sites, living in hotels, different politics, etc.

[MrMarkyMark]

+1 It's certainly a good step in the day-to-day lifestyle of contracting - client sites, living in hotels, different politics, etc.

It can make you a more attractive hire, especially when considering contracting for a consultancy.

[Mordac]

My better half has just gone down the consultancy route, she is now SC cleared, and working on a govt (high profile dept) project for a very well respected consultancy. She currently does 3 days away and 2 days WFH. We don't have kids, so there's no issue (no pun intended) there. The original plan was to give it 2 years or so, and see where to go from there (contracting being a serious consideration) but who knows, we are months away from being mortgage free, and sitting on a decent pile, and she is being recognised for her contribution to the current project, so if the remuneration follows accordingly, she might well stick it out and see what happens.
Basically, it comes down to what you want to achieve, and how best to achieve it. and depending on your situation and priorities, contracting may not be the best way forward. You need to have rhino-thick skin, a fully functioning bulltulip detector, an outgoing personality, and a brain which is quicker and smarter than your mouth.
Take everything into account, and plan accordingly.

[ChimpMaster]

I used to be a permie (senior) consultant on a salary of 65k plus a highly geared utilisation bonus structure that would add up to around £25k. It was sometimes fun, when I was in my mid 20s but I soon tired of the constant travel and living out of a suitcase.

Lack of control was the single biggest problem; I would come back from one country on a Friday evening and be told that I had to fly out to a different country on Monday, with no choice given because I was ‘owned’ by the company and they had to cover my salary and make sure I was billing for them. I missed out on going out with friends, being there for family events and just ‘living’ like normal people do. I spent many a week and weekend alone in a hotel room because I was the only consultant on-site. It was sad. I was sad.

The final straw was when I got married and bought a house, only to be told I’d have to go work 300 miles away on a year-long project. I quit on that day and ‘fell’ into contracting. The contract itself was 100 miles but you know what, it didn’t matter because it was my choice and within my control (and a heap more money….). 6 months later I chose to come back closer to home when a contract came up nearby.

Consulting is a good experience when you’re younger and I do have some really good memories of eating at plush restaurants, drinking out with clients/colleagues, big Xmas parties etc, everything on all expenses paid. But that’s the good side. The bad side will eventually catch up with you and cause issues in your personal life, if you have one.

And if you’re a consultant billed out by Accidenture or DeToilet or whoever, you are costing the end-client £1000+/day. As a contractor you might go in at £500 or £600, a heck of a lot cheaper and if you can prove yourself then more likely to be retained and trusted.

I have personally made the choice never to work for a consultancy again.

I have no idea what this Adultery is all about. There were pretty much only ever blokes on my assignments!

[Bee]

...
As I was looking for a new job, I have been approached by a consultancy and they offered very attractive package, over 15% more than I make now. Their client and type of work is very similar to what I do now. They subcontract me for a bank and I work as a permanent employee for this consultancy. For me it looks like a good first step towards going contract.
...

Yes it is.

If you have the capacity to get the best of the Consultancy and you want to be a consultant in the future you go on the right path.

[ChimpMaster]

Yes it is.

If you have the capacity to get the best of the Consultancy and you want to be a consultant in the future you go on the right path.

With the associated risks and lack of work/life balance.

CSC are one such organisation that make swathes of permie consultants redundant if there aren't projects for them to work on.

[northernladuk]

CSC are one such organisation that make swathes of permie consultants redundant if there are projects for them to work on.

Thats exactly how I started contracting

Did you miss a word out of that though?