Daily rates 2025 for IT consultants remain high

 

Despite the current pressure on the IT services market, daily rates for software developers and application experts will not be reduced in 2025. Our analysis of signed contracts with IT service providers in Western Europe reveals that this is a knock-on effect of salary and price increases that followed the COVID-19 pandemic. Since then, inflation clauses have become increasingly common in contracts, which tends to raise the price level moderately. This primarily affects short-term and short-notice services.

According to our 2025 research, daily rates for application developers at IT service providers in Western Europe will increase by 5.6 per cent for those at the lower skill level and by 4.8 per cent for those at the middle skill level (senior developers). Only experienced specialists will see a smaller increase. These figures are significantly higher than the day rate increases in 2024, which were lower than in previous years due to the economic crisis.

Daily rates for software developers in Switzerland

Taking Switzerland alone, where daily rates are among the highest in Europe at over CHF 2,400 for the highest skill level, the increase from 2024 to 2025 is lower than the Western European average, ranging from 2.3 to 3.6 percent. There has been impressive market development in Europe over the past five years: daily rates for all three skill levels have risen by between 19.4 and almost 25 per cent since 2020. The average growth rates for the Swiss market were only slightly lower.

Evaluation of current IT sourcing contracts

Metrics analyses a large number of its customers' existing IT sourcing contracts to determine current daily rates for IT consultants specialising in infrastructure and application development. Fees for freelancers and prices for independent experts in application development and IT infrastructure have not been included in this calculation.

Daily rates for IT infrastructure consultants in 2025

Higher daily rates for 2025 were evident in market data at the beginning of the year when we calculated them for IT infrastructure consulting services. However, the increase was relatively modest compared to previous years. As a general rule, the lower the skill level, the stronger the growth in 2025. For project managers, architects, and IT infrastructure experts, the European average increase is just 1.4 per cent. Switzerland even recorded a slightly lower increase in daily rates.

 

How can daily rates of IT consultants be reduced?

IT managers must question and curb the rising prices charged by IT consultants. There is no 'one solution' here, but rather a multitude of small adjustments. For example:

Strengthening internal teams

In a weak IT labour market (economic crisis, AI pressure), the chances of recruiting external candidates increase. Internal employees can be trained and certified to learn the technologies and skills currently covered by consultants. In addition, the knowledge of consultants must be made available to internal teams working on projects.

Define requirements and scope precisely

Unclear project requirements or overly broad consulting mandates often lead to unnecessary costs. Detailed requirements analyses and specifications reduce the scope for interpretation and the need for additional external services. Contracts tied to clearly defined milestones and results can prevent excessive activity.

Optimise negotiation strategies

Negotiating sourcing contracts and day rates requires thorough preparation and an in-depth understanding of the market. Comparative offers, current market prices, long-term framework agreements, fixed-price projects and remote or nearshore experts can all increase the efficiency of consulting.

Use technology and automation

Technical solutions can reduce the need for manual consulting services by automating routine tasks, for example. Using cloud services and SaaS reduces the need for infrastructure consulting, as maintenance and operations are handled by the provider. Low-code/no-code platforms also enable internal teams to develop and customise applications more quickly. However, this creates costs elsewhere.

Controlling and monitoring

Continuous monitoring of consulting costs and services is crucial. Are they in line with the agreed objectives and budget? It is also important to engage in dialogue with consultants. Providing regular feedback on their performance and costs can help eliminate inefficiencies.

 

Want to know more? In our blog, we explore various strategies for reducing consultant day rates.

If you have any questions about daily rates for IT consultants or current market prices, please feel free to contact me.