Decoding NetSuite Support Costs: A Comprehensive Analysis
If you're in the realm of NetSuite, you're well aware of the critical role that support plays in optimising your operations. The question is, which avenue do you take: NetSuite Consultancies, Independent NetSuite Contractors, or Full-Time Hire? Let's delve into the costs and benefits of each option to help you chart your course wisely.
NetSuite Consultancies: The Price of Expertise
Let's start with the powerhouses of NetSuite expertise—the consultancies. Here's the breakdown of the costs…
Cost Components:
Hourly/Project Rate: These consultants come with a price range of $200 to $300 per hour. Factors like task complexity and the consultancy's reputation influence the rate, with the industry average settling around $250 per hour.
Retainer Fee: Some consultancies offer monthly retainers at $10,000 to $20,000, netting you a discounted set of hours.
Additional Costs: Keep an eye out for extra charges like emergency support, travel, and software subscriptions for specific tasks.
The Pros and Cons of NetSuite Consultancies:
Pros:
All-Star Team at Your Service: When you hire a consultancy, you're tapping into a pool of experts with diverse skill sets, ready to tackle your challenges head-on.
Flexibility to Fit Your Needs: The beauty lies in the ability to scale up or down based on your ever-evolving business requirements.
Instant NetSuite Arsenal: Access an expansive range of NetSuite expertise at the snap of your fingers.
Cons:
Pricey Pursuit: High-quality advice comes at a premium. Be prepared for steeper hourly rates and retainer fees.
Bridge the Communication Gap: Integrating external consultants into your team might occasionally lead to communication hiccups.
Feature Oversell Alert: Brace yourself for the possibility of being tempted into purchasing features you might not necessarily need.
Alignment Issue: While dedicated, consultants might not share the same vested interest in your company's success as your internal team does.
Independent NetSuite Contractors: Personal Touch with Cost Sensibility
Cost Components:
Hourly Rate: Independent contractors have rates between $90 to $150 per hour. This cost hinges on factors like experience and skills.
Project-Based Costs: Some contractors offer a fixed project fee, which varies according to the project's complexity.
The Pros and Cons of Independent NetSuite Contractors:
Pros:
Tailored Attention: Working with an independent contractor ensures you receive personalised attention, with your needs at the forefront.
Budget-Friendly Rates: Contractors usually come at a lower hourly rate compared to consultancies, making it a more economical choice.
Seasoned Expertise on a Budget: Get access to senior NetSuite resources without breaking the bank.
Pay as You Go: Most contractors are flexible to work on an ad-hoc basis, aligning with your budget and timeline.
Diverse Skill Set at Your Fingertips: You can hire multiple contractors simultaneously to diversify your NetSuite skill pool.
Cons:
Urgency Bottleneck: Availability might be a hiccup, particularly for urgent support.
Backup Blues: In case your contractor is unavailable, there might not be backup resources.
Specialisation Scope: Contractors might offer a narrower expertise compared to a full consulting team.
Full-Time Hire: The In-House Advantage
Cost Components:
Salary and Benefits: Full-time hires come with salary ranges spanning various roles, from NetSuite Analyst to ERP/Systems Director.
Recruitment and Onboarding Costs: Factor in expenses associated with recruiting, interviewing, and onboarding, including agency recruiter fees.
The Pros and Cons of Full-Time Hires:
Pros:
Dedicated Resource: A full-time hire offers a reliable presence during regular hours, ensuring consistent support.
Loyalty and Alignment: Full-time hires tend to align closely with your company's goals and values, resulting in increased dedication.
Consistent Availability: FTE resources are readily available and can often go the extra mile.
System Insight: FTE employees work with your system daily, leading to better insights, faster solutions, and more efficient work.
Long-Term Efficiency: While upfront costs might be higher, FTE hires offer long-term cost savings through increased productivity and offsetting contractor/consultancy costs.
Cons:
Cost Intensity: Hiring full-time comes with significant upfront and ongoing costs compared to consultants or contractors.
Resource Rigidity: Flexibility in scaling resources is limited, which might pose a challenge as your needs change.
Management Complexities: Managing HR aspects and overhead might be cumbersome.
The choice between a NetSuite consultancy, an independent contractor, or a full-time hire depends completely on your company’s situation. Each option is viable depending on skills needs, budget and resource availability.
Here at Oliver Parks, we consult companies on how to get the most out of their investment in NetSuite. If you would like a conversation in more detail about which route will work best for your company right now, reach out to our Recruitment Consultant Josh, who specialises in NetSuite.
We can guarantee a non-biased approach to your NetSuite needs and have helped countless NetSuite customers with talent augmentation whether that be referring a Consultancy to you or placing a NetSuite Contractor / Full Time resource in your organisation.