Information Technology Consultants

Salaries and hourly rates for IT consultants vary greatly, based on their levels of education and experience, specialization, and employer. Management consultants who worked in computer systems design and related services had mean annual earnings of $119,170 in May 2023, according to the U.S. Department of Labor. Salaries for all management consultants ranged from less than $57,840 to $172,280 or more.

Many independent consultants charge by the hour, with fees ranging from $50 to well above $100 an hour. Consultants who work on a contract basis must estimate the hours needed to complete a project and their rate of pay when determining their contract price. Independent consultants must also realize that not all their work time is “billable” time, meaning that general office work, record keeping, billing, maintaining current client contacts, and seeking new business do not generate revenue. This nonbillable time must be factored into contract or hourly rates when determining annual income.

Although independent consultants may be able to generate good contract or hourly fees, they do not receive benefits that may be typical of salaried employees. For example, independent consultants are responsible for their own medical, disability, and life insurance. They do not receive vacation pay, and when they are not working, they are not generating income. Retirement plans must also be self-funded and self-directed.