An update of PAC’s daily rates and prices database shows above average growth rates in the German manufacturing industry compared to other industries, with growth rates in selected IT topics above 3.0% in 2013/2014.
This seems promising, but which are the segments with the most attractive growth rates and which not?
In order to answer this question, PAC distinguishes between rates and prices for application-related services and for infrastructure-related services.
Application Services:
Within the German manufacturing industry highest growth rates of daily rates are expected to be in IT-Consulting for SAP solutions in the fields of Business Intelligence (BI) and Customer Relationship Management (CRM) and especially for Senior Consulting levels. Growth rates of daily rates in these segments will be above 3% in 2013/2014.
Why is that?
- This on one hand is due to the larger German manufacturers are continuing to extend the functionality of their existing SAP ERP solutions with extended functionalities (e.g. BI, CRM) and on the other hand in the SMB segment there is still backlog demand in the fields of integrated ERP solutions, including SAP.
- This, especially requires IT consulting services prior to implementing these solutions and requires manufacturing specific industry know-how which will drives growth of daily rates accordingly.
The lowest growth rates of daily rates are expected to be in Testing Services and especially for Microsoft Business Solutions and IBM Mainframe applications. Growth is expected to be below 1.5% for these two platforms 2013/2014.
Why is that?
- Actually, this is not a manufacturing-only trend. Basically this is because of the general nature of testing services, which is like software development not a location-specific activity, and there is a growing volume of testing conducted offshore, which drives down the average daily rates, particularly for more junior profiles.
- However, there is also a positive result of this trend, which is also a growing demand for senior profiles with experience coordinating offshore teams, providing a local client interface. This is a comparatively scarce skill-set, driving up rates.
Infrastructure Services:
Highest growth rates of daily rates are expected to be in the fields of Microsoft related infrastructures, with growth rates up to 3.0%. Highest growth rates are in the fields of IT-Consulting, followed by Project Management and Implementation Services. The lowest growth rates are expected in the fields of desktop management and testing.
Why is that?
- On one hand, PAC sees some major backlog demand in optimizing and modernizing IT infrastructure landscapes in the small and medium sized manufacturing industry which requires comprehensive IT-Consulting upfront and which drives daily rates in this area accordingly.
- Furthermore, PAC expects especially the larger German manufacturing companies to increasingly address strategic infrastructure projects, like e.g. the implementation of cloud computing, mobility and collaboration concepts (the later e.g. beeing based on Microsoft Sharepoint). Further projects, that have gained importance in the manufacturing industry and which will require according specialist know-how, will be in the fields of business intelligence (BI) and big data and which will drive daily rates of infrastructure-related services accordingly.
For further detailed information, PAC offers its customers an update of its rates and prices database which provides new insight into IT Services rates paid by firms today. Using a combination of user surveys and supplier input PAC has derived average rates for a full range of IT Services, segmented by job level, industry, solution, platform and service type. It’s the only comprehensive and definitive analysis of actual IT services rates paid available.
The Excel document contains reference prices for all levels of qualification and individual services, validated by PAC, for the years 2012 and 2013, and a forecast of the price development for 2014. It is a reliable and neutral guideline for IT services providers and buyers to obtain individual benchmarks.
Two accompanying reports, focusing on Applications Services and Infrastructure Services, provide commentary and analysis on what the rates mean for your business. More information on PAC’s daily rates database.
