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Project Managers take rate cuts as economy cools

Published on Feb 12, 2008 | | Contract Rate Checker

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Fears of an economic downturn are forcing top project managers in the digital, telecoms and media industry to cut their rates, according to PM3 Consulting.

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

New research from PM3 shows that professional rates have started to 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 - that's an average drop of 35%.

"New management consultants are pouring into the market and it's becoming flooded with some first rate people looking for contracts," says Steve Pragnell, CEO of PM3 Consulting.

"However, those we would class as 'experts' - the very best consultants - are having to accept sizeable rate cuts to compete with those with a lower skill set, who can charge less."

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