
Ask HN: Anyone interested in starting an IT consultancy? - tixocloud
I&#x27;m thinking about starting an IT consultancy company and wanted to know if there&#x27;s anyone interested?<p>My experience has been 4 years as a software engineer, 3 years in management consulting, strategy and analytics. My skillset is full stack web development (i.e. HTML, JS, AngularJS, CSS), Python, NodeJS but have also programmed in Perl, PHP, Java and C++ so I could probably pick up languages fairly easily if needed.<p>I am based in Toronto, Canada and would love to work with someone where we can build something like Thoughtworks - good, quality software. Open to discussions on what niche we can focus on (it&#x27;ll depend on our skills) and who knows? Eventually, we may even transition from consulting to SAAS.
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BjoernKW
Well, interested yes. It's not easy though. A large part of the market runs
through recruiters. Winnings bids takes time particularly when your company is
not yet established.

Technology doesn't matter as much as marketing. How would this new consultancy
differentiate itself from the myriads of others who also claim to offer good,
quality software but don't (problem is most clients will only realize that
after the fact ...)?

That said, technology can be a differentiator if you're willing to take a
risk. If you bet on being THE go-to expert for a new technology and that
technology hits mainstream usage this can mean a huge opportunity.

~~~
tixocloud
Agreed. My hypothesis is that the recruiters are the ones with the connections
and have been doing a better job at marketing. We know that we're really
strong technically so that's not a big issue. Where we'll have to focus more
energy and attention is as you said, getting better at marketing.

And yes, the bet is on being THE go-to expert. How will we showcase this to
new clients? Product portfolio, demo trials of software, detailed explanations
of our methodology in simple terms. All the marketing stuff that most other
consultancies don't do at the moment.

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osullivj
What are your thoughts on the eternal conflict of interest [1] between clients
and consulting firms ?

Fixed price or time and materials?

Target utilisation rates?

What do you do with benched employees? When do you bite the bullet and fire
them?

[1] [https://etrading.wordpress.com/2006/05/31/permie-vs-
consulta...](https://etrading.wordpress.com/2006/05/31/permie-vs-consultant-
vs-contractor/)

~~~
tixocloud
Regarding the eternal conflict, it's inevitable but I think it's important to
be clear on the value we're delivering and upfront as much as possible on the
time commitment. Perhaps things can be broken down in an agile manner - might
be less efficient but we could also charge more. I think it's about balancing
risk on both sides and understanding what's comfortable on both sides. I'm not
a fan of doing free work to win bids.

Would love to see if we can do fixed price if we know most of the variables.
Otherwise, I'd stick to time and materials.

I'm not a big fan of target utilization rates and am open to exploring
alternative ways of measurement.

I'd like to explore a model where maybe employees are also part of the profit-
sharing pool, where by everyone has a share. My view is that benched employees
should be given an opportunity to explore other parts of the business. Perhaps
they can get involved in the sales/business development part of things. If
it's clear that contracts aren't coming in, then unfortunately, people may
have to look elsewhere. But hopefully, they could be incentivized to help
generate sales and projects.

To keep the lights running, we might sell products to supplement income.
Unsure what that could be but perhaps productized service, managed services,
industry reports.

