This article was featured in the December, 2005 issue of the Technology First Magazine.

Dayton, OH
December 15, 2005 -

By Jena Roytman, Director of Business Development, Roytman Information Services, Inc.

Who hasn’t heard a common joke: “A consultant is someone who borrows your watch and then for a hefty fee tells you what the time is.” On a serious note, consultants are an essential part of the field of Information Technology. Do you need to hire a consultant to efficiently augment your staff or have you thought of striking out on your own? And so let’s concentrate on both issues: How to hire a good consultant and whether you should consider becoming a one. At first, back to the basics …

What is IT Consulting Industry all about and how does it function?

Many companies, large and small, including the Fortune 500 corporations with sizeable IT departments and smaller shops with minimal computer workforce, often tend to supplement their staff by 10%-50% through outsourcing the work to consulting companies or by hiring temporary help. Although, the use of outside experts can be driven by many factors, these staffing tactics typically help management to achieve two primary goals:
(1) To locate the unique qualifications not available in-house
(2) To manage the headcount, and thus achieve long-term financial benefits

In his book, “The Dilbert Principle”, Scott Adams provides more amusing reasons to hire Consultants such as “Consultants have credibility because they are not dumb enough to be regular employees of your company” or “Consultants eventually leave, which makes them scapegoats for major management blunders” or even “Consultants will return your boss's calls because it's all billable time”.

Some IT Managers maintain a list of independent contractors and use them periodically, yet most retain the services of a consulting firm or a search agency to supply them with necessary resources. Based on the type of the project, the work can be done on-site or off-site. When it comes to analysis, design, specifications, implementation it is typically accomplished at the client’s site, while, for example, purely programming tasks or documentation do not require daily interaction with clients and users. The proper use of Consultants can make or break the department so it is very important to research consulting company’s practices and history of success.

To be a consultant or to be an employee?

Ah...the great American dream of working for yourself and being your own boss. You call the shots; you control your life and make more money along the way.

It’s all true, but those privileges don’t come without a price. The biggest challenge for most independent contractors is when you are no longer simply an SAP Expert or a .NET Developer, but also a Salesperson. The need of continuous search for the next gig drives even the most determined professionals away from the “rosy path” of independent consulting. Even more expenses come with purchasing your own health insurance benefits and paying your own taxes. Oh, and you also don't get paid vacations or holidays. However, in general, if you have the skills and the right attitude then you will find consulting to be fun, rewarding and profitable. Once you settle on the fact that you have to constantly sell yourself and managed to control the additional expenses, the next crucial factor is to stay on top of newer technologies or nobody would be interested in your “consultations”.

What really differentiates an independent contractor is a lifestyle choice. Because true consultants are those who by their nature want to move from challenge to challenge, they strive to get more interesting work, learn more skills, give objective opinions, and earn more money in the process.

If you work as a direct employee, projects are typically assigned to you and often the years go by spent on the development, support and troubleshooting of the same application. Some people enjoy continuity and consistency as it's not too strenuous or challenging and it's supposedly a more reliable form of employment. Although we have had many examples when our Consultants do a good job and “outlast” most employees in the same department. At the same time a standard contract lasts between 3 months to a year. If you are not stressed by looking for a new consulting gig every few months and have strong expertise in your area of choice, then consulting maybe for you.

How to find and hire a good consulting resource

Your company has made a decision to select a new ERP package. Now, reaching for your Tylenol bottle, you are wondering how you’re ever going to manage your daily responsibilities, while leading the selection and implementation of a new system. Surely you need more people and can hire additional staff, but what will you do with those extra employees when the project is over and your work life is back to normal? Whatever your reasons (implementation of a new system, or data migration or just handling a temporary overload of work), it is usually less expensive to "rent" the skill set than to hire an employee.

With their in-depth expertise in the specific field and a wealth of diverse experience, good consultants are better aware of the latest technologies, benefits and drawbacks of IT solutions for your industry. They are there while you need them, and they are gone when the project is over, saving you the long-term expense of hiring permanent staff.

There are many factors to consider when selecting a good consulting resource. Experience, knowledge and solid understanding of unique aspects of your industry are of outmost importance. If the consultants can’t "speak your language," it will not only be difficult for them to understand your needs, you will also find yourself spending time educating them about your business. Use your own circle of contacts to find a firm with a proven track record in your industry. Consider contacting your colleagues in similar organizations and having them refer you to firms they have successfully utilized on similar projects. Internet, professional organizations and industry publications that include articles written by consultants are among other good resources.
Once you identified a list of potential resources, conduct in-depth pre-proposal meetings to address all of the questions or issues you might have pertinent to your project (from their industry expertise and types of projects they usually handle to billing rates and guarantee on a value added solution) and be sure to check their references.

A strong consulting resource can bring a wide range of benefits to your organization. Doing your homework and taking the time to select a firm that matches your needs, will repay many times over in positive outcome of your project.

So, to hire a consultant or to become one? I suppose you should decide for yourself, but consider all pros in cons in your decision process.

Jena Roytman is a Director of Business Development at Roytman Information Services, Inc., a Dayton, Ohio-based provider of Career Placement and Consulting solutions in Information Technology, Management and Engineering. Established in 1995 the company has been growing consistently in a highly competitive industry. For additional information please visit http://www.roytmanIS.com