[quote=SK in CV]Because those numbers are talking about two different things. One is what the employee is paid, and the other is what the employer charges for the employee time. In professional services industries, employees never get paid what their employers charge for their services. It ranges anywhere from 2x your hourly pay to 5x your hourly pay. In IT consulting, that number is typically 2.5x. So if you’re paid $50 an hour, they charge $125/hr for your time. So to hire you out for a full year, it would cost the customer about $250K for the year. But that rarely happens. In contract IT consulting, 75% utilization is typical. (Unlike law or accounting, where >100% utilization isn’t uncommon, particularly for younger employees.)[/quote]
I thought you’re referring to individual contractor and not contracting firm. For contracting firm, I agree, it’s the same for my industry. I used to work for a contracting firm and we get paid around $45-50/hr and they’re charging the client $135/hr.
