Pandemic Changes SAP Freelancer Pricing Model

Dmitry Kaglik

October 5, 2020


No Comment

It’s no doubt that 2020 goes under one big sign of COVID-19 pandemic. It changes a lot in our lives. It changes the lives. It changes us.

Of course it also changes the world of SAP consulting. Many companies reduced or shut down SAP programmes altogether. Many companies use this time to re-arrange their SAP team. Some even use this low-activity time to increase the SAP implementation speed.

SAP Expert ran a vote that showed that many SAP consultants were still optimistic about their future. There’s another vote about holidays that SAP consultants can or cannot afford nowadays.

Everyone sees and accepts now that SAP projects shifted from on-site to remote model. There’s no need now to come to the office, moreover there’s no possibility to come to the office in many places and companies. SAP consultants can successfully deliver the projects without being dragged from their homes. At least, this is true for non-greenfield implementations, although I know examples of successful go-lives in remote mode (text in Russian).

This inevitable led to the shift in the pricing model for SAP freelance consulting works. I would say this is a tectonic shift.

Customers, or agents, used to ask for the “all-inclusive” rate for a consultant being on-site. This would on top of a regular rate include all overheads that freelance SAP consultant had to pay for with travel and accommodation being the biggest. Of course, this was convenient for customer or agency budgeting, but it was risky for the consultant who would be liable to any fluctuations in travel or accommodation costs. These fluctuations could be significant in popular destinations. Any objections from consultants were not accepted. This was the most standard practice. Luckily, there were also rare exceptions.

With remote work, travel is now out of equation. There is no need for consultant to spend money on tickets, hotels, taxis and so on. Has it affected the rates?

There is no easy answer to this question actually. Mostly because the market contracted significantly. There is no much offer from companies who hire freelancers. But there is still some. And it shows that companies and agents are now more happily accept the rate without travel expenses, agreeing to cover trips separately when (of if?) they return to normal.

This is a significant change in the pricing model. It removes the risks of changes in travel cost from consultants, moving it to customers who have comparably bigger budgets.

Have you noticed similar changes in your conversations with customers and agents?

Related Posts

Search strings: the powerhorse of Electronic Bank Statement

Dmitry Kaglik

August 2, 2021


No Comment

SAP Expert published multiple articles about the bank statement process in SAP. We looked at the ways to import the statement, the ways to process the end-of-day and intra-day statements. Now let’s have a look at some interesting aspects of configuration behind the Electronic Bank Statement process. Facebook Twitter Linkedin Digg email

Read More

Mock Job Interview for SAP Consultants

Getting a new job for SAP consultants consists of multiple steps. It all starts with a preparation of your CV. You need to ensure that your CV is readable, that it properly describes your experience and that it shows your value for the potential employer. Then, you need to start your job search. There are […]

Read More

Leave a Reply

Your email address will not be published. Required fields are marked *

Search this site


You can subscribe to our regular updates here.


Will you be happy to pay for the 3rd edition of the book FREQUENTLY ASKED QUESTIONS ON SAP FINANCE?

View Results

Loading ... Loading ...
Disclaimer and privacy policy