Renting expertise

Hiring IT consultants can be more cost-effective than adding workers

By -- Industrial Distribution, 10/1/2000

Despite the record number of graduates holding computer science degrees today, the shortage of IT personnel is expected to worsen before it improves.

And because the demand for computer science grads so greatly exceeds the supply, companies are

increasingly "stealing" MIS personnel from each other. In many cases they are raiding their competitors and offering IT personnel willing to switch jobs everything from cash bonuses to new automobiles.

While this is good news for IT headhunters-and for the coveted MIS employees-it is a growing problem for distributors who are unable or unwilling to pay the inflated salaries commanded by this new generation of superstars.

Although it's not a solution that will apply to every distributor, there is an alternative to signing on a full-time IT employee. In the field, it's sardonically referred to as "Rent-A-Nerd"-in other words, hiring a consultant. On the face of it, paying a consultant may seem illogical because as IT personnel fees have headed heavenward, there has been a commensurate increase in the fees charged by IT consulting firms.

But just as it may cost less per year to rent rather than purchase a car if you only need occasional use of one, "renting" a consultant can make sound economic sense if your needs are limited to specific short-term projects. And because the consulting firm pays the fringe benefits of its employees-medical insurance, maternity leave, vacations and the like-the net cost to the distributor may not significantly exceed that of hiring an MIS employee.

But choosing the "right" consultant requires the same degree of care as hiring an employee. According to the Independent Consultant's Alliance (www.aeadvertising.com/consultants) a company contemplating using a consultant should request answers to at least the following:

• May I have a client list including names and phone numbers of references ?

• How long have you been in business?

• What kind of projects/issues have you handled?

• How do you measure success?

• What resources do you have to complete the project (staff, sub-contracting)?

• Can you meet the time schedule?

• How do you charge? Per hour? Per day? Per project?

And The Consulting Exchange (www.cx.com/) based in Cambridge, Mass., suggests these important guidelines for anyone hiring a consultant:

• Define your goals: The more specific you are, the more likely your consultant can help you achieve your objective

• Look for experience: One of the main reasons for hiring a consultant is because you need special expertise

• Look for someone who can transfer their experience from other assignments to your company

• Look for learners: Good consultants constantly learn; they're experts, but they're also confident enough to say when they don't know something

• Ask for input: Invite your candidates to share their thoughts about the assignment being discussed; they may help you refine your goals

• Ask for a written proposal: This is an opportunity for candidates to demonstrate their understanding of your business problem and to outline a framework for addressing it.

But you don't need a consultant to send your comments and/or suggestions to harper.d@att.net.