Day Rate Trends: The Narrowing Gap

Date: April 1, 2010
Pages: 25
Price:
US$ 2,500.00
Publisher: Datamonitor
Report type: Strategic Report
Delivery: E-mail Delivery (PDF)
ID: DB6571A3E93EN
Leaflet:

Download PDF Leaflet

Day Rate Trends: The Narrowing Gap
Introduction

'Man-day rates', or more simply 'day rates', the prices charged for individual IT personnel used within an outsourced project or IT service, are a fundamental part of overall contract pricing for suppliers looking to manage their profitability. For clients, this price can determine whether vital enhancements or technology refreshes are affordable.

Scope

* Pricing data in this report is from UK contract engagements over the past nine years.

* Data comes from a mix of negotiated rate cards and supplier proposal materials.

Highlights

Clients are now getting 'more for less'. Day rates for outsourcing staff have fallen at a CAGR of -1.4% over the past eight years, during which the retail price index grew around 3%. Offshore deflation and recessionary pressures related to the global financial crisis are the main contributors to this.

Reasons to Purchase

* Day rates are a fundamental part of overall contract pricing for suppliers looking to manage their profitability.

* For clients, this price can determine whether vital enhancements or technology refreshes are affordable.
OVERVIEW

Introduction
Summary
Methodology
Executive Summary
Rates are falling in real terms
The price gap is narrowing across suppliers
Different suppliers specialize in different skills
Western suppliers still charging an offshore premium
Table of Contents
Table of figures
Table of tables
Introduction
The importance of day rates
Industry trends leveling price differentials
'Vanilla' software drives new differentiators
Outsourcing deal trends narrows supplier tiers
Global sourcing changes pricing dynamics
The UK as a microcosm of global trends
Definitions
Supplier tiers
Offshore and Western suppliers, and fly-in roles
BCS skill levels
Rate card analysis
Competitive landscape has kept pricing keen
Tier differentials are eroding
Senior roles fall fastest
Lower tiers specialize in senior roles
Offshore labor arbitrage remains attractive
Western offshore premium alive and well
Senior roles attract the biggest premium
Future outlook

APPENDIX

Methodology
Further reading
Ask the analyst
Orbys consulting
Disclaimer

LIST OF TABLES

Table 1: BCS ISM Level 4 role description
Table 2: BCS ISM Level 5 role description
Table 3: BCS ISM Level 8 role description

LIST OF FIGURES

Figure 1: UK retail price index versus day rates (eight-year and five-year CAGR comparison)
Figure 2: Average rates by supplier tier (2002-09)
Figure 3: Average rates by role with CAGR trendlines
Figure 4: BCS Level 4 day rates by supplier tier (2002-09)
Figure 5: BCS Level 5 day rates by supplier tier (2002-09)
Figure 6: BCS Level 8 day rates by supplier tier (2002-09)
Figure 7: Average onshore, fly-In and offshore rate comparison
Figure 8: Offshore and fly-in rates for Western and offshore suppliers
Figure 9: Western supplier premium by skill level (2009)
Chile Power Report Q3 2013 US$ 1,295.00 Jun, 2013 · 62 pages
Global Jackup Rig Market: An Analysis US$ 800.00 Jun, 2010 · 34 pages
Drilling for Offshore Oil and Gas - Global US$ 11,600.00 Aug, 2010 · 255 pages
Ensco plc: Company Profile and SWOT Analysis US$ 99.00 Dec, 2011 · 40 pages

Ask Your Question

Day Rate Trends: The Narrowing Gap
Company name*:
Contact person*:
Phone/fax*:
Email*:
Request invoice
Your enquiry: