The Good, the Bad, and The Ugly in Banking I.T. Consulting

They come in all colors, all shapes, all sizes, and most of all all DISGUISES. We've covered what to be on the look out for with I.T. (esp in banking) Consultants, but what about what they cost, their "resume" and qualifications, and most of all THE COMPANIES they come from. Let's focus on the I.T. consulting companies a bit here, analyze them, and then break them down into the types of frauds and liars half of them are--and most of all how they source their people, what they PAY them, and what the turnover rate is with with a lot of these firms, if not most of them. There are a few warnings to heed when you go to the market and hire one of these companies to staff your project or to be the "main or primary vendor" on your project.

1. The types of companies that "provide staffing" and "offer consultants" from their list--

a. The "staffing firm"
b. The "consulting firm"
c. The "Big Four" firm
d. The "vendor" firm

A. The "staffing firm"

This is the one to be on the alert about. They come with the wind and go with the fog. They are rarely legitimate and if they are then you need to be even more careful about what and who you are dealing with. First of all before you do any business with one of these outfits, do a FULL BACKGROUND AND REFERENCE CHECK ON THEM AND A CREDIT CHECK TOO IF YOU CAN. You will often find that they are unlicensed, un-addressed (no physical building or address), and unincorporated. That's for openers. You will often likewise find that they have been in trouble with the tax authorities, have not paid their "employees" and "contractors" on time, and have been under investigation by the legal authorities for other violations of the law. Likewise, these companies my be run by illegal aliens, by people who have been dodging the law in other countries, or by people who have left other firms under "a cloud of suspicion."

B. The "consulting firm"

All of the warnings above for the staffing firm apply here too,  but there are a few other "flags" to be on the look out for with a consulting firm. First, what do they "specialize in"? That is do they only work with one or two areas or platforms? Do they only work for other companies who "sub-contract them." Do they have a reputation for being what they say they are (good people, finish their projects, etc). Do they have a name that is recognized in their market? Do they have management that is not dodgy and dicey? Do they have a physical location. Can they provide you with references. Do they have a sense of propriety (that means, they are not going to sell what they either don't have, don't know, or can't do). Do they permit you to negotiate the prices (if they won't do that then they don't really want your business). Do they have a "track record"--that is they didn't just "spring up overnight" and have no real history--or they have changed their name multiple times over the years and for reasons that are probably not good.

C. The "Big Four" firm

These often "sound good," "are well known," "have been in the business for a long time," but "have never done a project up to any level of real quality or performance" in their entire history. What to ask? Especially on a banking I.T. project: (a) what is their relationship with the vendor you are using (b) what is their cost and rate schedule (c) what sort of employee turnover rate do they have (d) what is the last major project they did (e) how many projects similar to yours do they have going on right now--that is simultaneously with yours (f) what sort of "guarantee" do they give about project risk and mitigation (that is can they handle the work and not drop the ball) and (g) most of all what sort of pay do they give their consultants (this is very important because oftentimes their pay is very low and so low in fact that they will "jump" at the first better paying opportunity that comes along and "bail out" on you project). Don't believe the hype about some of these big four firms. Many get lower quality consultants and staff than their smaller competitors.

D. The"vendor" firm

These are the sleaziest and cheesiest of all believe it or not. Vendors of banking I.T. software are the lowest of the low when it comes to what sort of staffing they can provide. They often have major issues with bankrolling a project and they will ship in "non-hackers" (to use a military term) just to fill in the"ranks." Many times companies in banking software have people they have not trained and who have joined the company more so because they are cheap rather than because they are good. Also the vendors usually have a good sales team that will go out and "promise the moon" if you will only buy it. Watch out. The vendor may own the rights to the software you are buying from them but they do not have the staff to put it together properly and make it work right for you.

Warning! Be the wolf not the sheep when it comes to who you contract to do your project.