Employers beware: Exploiting the price war may be a false economy

Fears of a severe economic downturn are forcing top project managers in the digital, telecoms and media industry to cut their rates.

There is also evidence of a looming price war in a market which is oversupplied with professionals.

New data from PM3 Consulting ñ one of the UKís leading suppliers of project managers ñ has seen professional rates fall this year as the market tightens and focuses on cost cutting instead of revenue generation.

Figures in the survey suggest fees charged by top consultants have dipped by as much as 300 per day ñ thatís an average drop of 35 per cent.

ìNew management consultants are pouring into the market and itís becoming flooded with some first rate people looking for contracts,î says Steve Pragnell, CEO of PM3 Consulting.

ìHowever, those we would class as ëexpertsí ñ the very best consultants - are having to accept sizeable rate cuts to compete with those with a lower skill set, who can charge less.î

This means some industry consultants are now willing or being forced to take roles for which they are over qualified.

Pragnell warns that setting your standards by price alone is a false economy: ìThis kind of work is a vital and a valuable asset to companies. They expect highly professional people to join them and this is what we supply at PM3 Consulting,î says Pragnell.

ìCostly revenue generation projects are often the first to be culled during times of economic risk. But companies are still looking for professional delivery specialists with a track record of getting the job done, done efficiently and done effectively. This should remain the priority of any business using outside project management professionals.î

ìOur team are experts at developing and delivering business cases to reduce financial risk and to realise tangible benefits for businesses,î says Pragnell.

In a survey by PM3 Consulting of 500 project managers more than two thirds (70%) had more than seven years experience. More significantly: Over half (53%) have been working in the industry for more than a decade.

ìThis is a clear indication why project management is now being treated as a recognised profession,î says Pragnell.î

Steve Pragnell ñ who has been in the business himself for 15 years ñ says management and consultancy in the digital, telecoms and media industry has come of age. Specialists brought in to manage company projects are older, more mature and more experienced.