Companies are paying too much for project management contracts and services, according to new research.
The survey, conducted by PM3 Consulting, found that almost nine out of ten project managers believe that margins charged to clients for consultants and project managers should be below 20%.
Over half of respondents (51%) suggested that margins should be as low as 10%.
Steve Pragnell, chief executive officer at PM3 Consulting said: “Companies should not have to face excessive charges for contractors. People in the industry are asking for a change.”
“The industry is now populated by highly skilled professionals – but it is essential that value for money is provided,” he added.
Further feedback from the survey showed that consultants find it harder to work effectively if their clients think they are paying too much for their services.
“This survey is an important milestone for this industry’s evolution,” said Pragnell. “It shows that taking note of the feedback from project managers is vital if you want to grow your business and keep your clients.”
Pragnell also predicts that there will be steady growth within the project management industry in 2008 and this will create increased competition for client business.
“Demand for project management and consulting services in the digital, telecoms and media arena will definitely rise this year,” said Pragnell.
“The successful companies will need to focus on providing real value with their services.”
© Crimson Business Ltd. 2008
