Thread regarding Verizon Communications Inc. layoffs

Why do they allow Consultants in IT to get paid a lower rate then they are billed at? This happens all the time

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Post ID: @OP+16GhTaVL

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The individual is but mere consequence, to be tossed like a stale tuna sandwich into a sun baked muddy gutter, to eventually wash down a fetid sewer into obscurity.
No bamboo bridges!

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Post ID: @5wty+16GhTaVL

clueless

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Post ID: @1fpn+16GhTaVL

Ever hear of a loaded labor rate? Benefits, 401k, etc

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Post ID: @1zsu+16GhTaVL

@naj+16GhTaVL

Hello Sir Duh

My point as many of peers knows the spread is so large .... why ...cause middle men get some of that difference between actual and bill rate

Does that help clear up your Duh 🙄 sir

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Post ID: @tws+16GhTaVL

duh. How did you think consulting companies work?

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Post ID: @naj+16GhTaVL

Vast majority of IT consultants are employed by contracting companies. These companies take whatever cut they can negotiate. Let's say VZ is willing to pay $80 / hour for a contracting role. Contracting company finds a consultant willing to work for $50/hr. Boom - $30 /hr margin. Maybe consulting company has a strong candidate that VZ really wants for some reason, but he demands $60 hour. Consulting company might try to negotiate a higher rate with VZ - or - failing that take a smaller margin. The margins are usually at least %15 in practice. It is very hard for a sole IT consultant to work directly for a large company. They don't wan't to deal with the legal liabilities, billing hassles, tax issues of working with individuals.

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Post ID: @efw+16GhTaVL

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