The consulting industry is fiercely competitive and nets between $130B and $150B a year. In fact, professional consultants earn more money than many lawyers, doctors and other professionals. 

Offering free consultations is a common way for a software consultant to seize new accounts. But is there a red flag where a consultant may be giving away too many services for free? The worst scenario for a professional software consultant is to offer free services to the client and then never hear from them again once they no longer need their help. 

Although having the best intentions, many people will waste a consultant's time (i.e., client ignores or rejects any suggested approaches or solutions given by the consultant and seek the services of someone who will do it cheaper or will attempt to do it themselves). Small business owners especially can be challenging to work with. Some clients have a tendency to jump into projects before having adequate resources to finish what they have started, decide to go in a different direction midstream, while others simply don't want to spend any money when getting professional services. It's hard to believe, but some clients actually expect to receive free services for life. To counteract this notion, a software consultant can draw the line by offering free services within a promotional time frame and then begin charging a fee for services rendered after that time.

A good indicator of what a client's true intentions are is to monitor their activity within a specified period to see if their consultation activity bears fruit in the form of a contract. One big red flag is non-commitment on the part of the client. If they seem indecisive or vague about what they want it may be time to move on. Although there are times when a free consultation results in a paying client years later, who can wait that long? 

Less of Your Time is Wasted When You're Upfront

After being burned, some professional software consultants no longer give free consulting. They find that clients are much more willing to follow their advice when they have paid something. In order to close an account, a happy medium can be agreed upon by both parties involved as a way to build a long term relationship with highly qualified prospects. 

A software consultant's work, knowledge, skills and time are valuable. They can offer a potential client general solutions instead of addressing specific challenges. If a specific topic of discussion, troubleshooting session or other issue needs to be addressed, the consultant can inform the client of any upfront costs to receive a particular service if they need further assistance. Really, a free software consultation (if one is given) should be presented in a very similar way someone would hand out samples of a product at a grocery store. A professional consultant ideally wants clients to see how they can benefit using their services on a trial basis with a pitch leading to more extensive services which would only be available if they sign a contract with their firm. 

 Red Flags

Facebook was originally intended as a way for people to stay in touch with friends and family members by sharing pictures and status updates on their timeline. As the website's popularity has grown, so has criticism that it is becoming one giant, online high school.

Online Bullying

There has been a dramatic increase in recent years in the number of online bullying cases due to the introduction of social media. Bullying isn't just limited to younger Facebook users, either. Many adult users have also resorted to bashing others online through nasty status updates and cruel comments.

Prior to social media, bullying in high school involved "kick me" signs and toilet swirling. Facebook and other social media outlets have allowed users to take bullying to a whole other level. Victims can no longer escape bullying by leaving school or work. The torture continues online, at anytime and anyplace.

Status "Likes"

In high school, everyone wants to be part of the popular crowd; people who are outgoing, beautiful, and seem like they have everything.  Posting a status update is similar to wanting to be popular. Once an update is posted, many users wait with bated breath to see how many friends will "like" their status. They believe that the more "likes" they receive, the more popular they are.

If that isn’t enough, there are many Facebook games that involve "liking" someone's status. Games like "Truth Is", where someone likes a status update and in return the poster writes how they really feel about the friend on their Facebook wall. This can get touchy, especially if the two people aren't friends outside of Facebook. It's similar to high school where someone desperately wants another person to like them, but when they find out how that person really feels they are crushed.

Relationships Are Difficult to Keep Private

When someone signs up for Facebook they’re asked to complete their profile, which includes a relationship section. Users can select from different options including "single", "married", "widowed", and "divorced". Whenever someone changes their relationship status, the update shows up on each of their friend's news feeds.

It's easy to see how this feature correlates with high school where everyone talks about who is dating who or which couple broke up. It used to be that after graduation, people were able to keep their relationships more to themselves. Not so anymore in the age of social media. Now everyone has the ability to state their opinion on a friend's relationship status, either by "liking" their status change or by commenting on it.

Facebook has presented many benefits to its users, including the ability to rekindle old high school friendships. What one must understand when they sign up for the service is that they are opening themselves up to the same criticism and drama that takes place in a high school setting.

Proceed with caution!

IT Outsourcing came to foray as a means for corporations to focus on critical business operations while having a specialized IT company take over the responsibility of managing the IT infrastructure and application development. For corporations especially in the developed countries, IT outsourcing provided two fold advantages, one was access to a highly talented pool of engineers and that too at a lower cost since countries like India were quickly growing their stature as an IT outsourcing hub.

IT Outsourcing is now as mainstream as ever and almost every leading organization outsources some or all parts of its IT infrastructure to a specialized company. It makes pure business sense and with tightening budget controls, IT outsourcing has become one of the strategic cost reduction driver for most organizations. Moreover, IT outsourcing is no more restricted to companies in USA & Europe outsourcing their IT projects to countries like India. Domestic companies within India itself actively use IT outsourcing including the Indian government like the India Post project given to TCS.

Is it then a no brainer that IT Outsourcing is critical to your business? Well, if it is cheaper and does not seem to have any inherent disadvantages why not!! Not really, IT Outsourcing despite proven benefits has its limitations and you should be cognizant be of the same before considering outsourcing your IT operations.

·         Limitations in estimating the actual cost of IT outsourcing:Let’s tackle the biggest driver of IT Outsourcing-Cost Savings. For anyone to estimate the cost savings from IT Outsourcing one needs to be able to predict the cost of outsourcing which then helps understand the cost savings from the same. Yes, at a higher level it is a matter of a simple $ per man-hour costs and IT outsourcing will appear to be cheaper in almost all cases. However, “hidden costs” are commonplace with IT outsourcing and it can be immensely difficult to accurately predict these hidden costs. For example, you need to be able to identify the costs of transitioning your in-house IT to an outsourcer, management overhead needed to manage the outsourcing relationship etc. In addition, IT outsourcing contracts are fixed at the start of the contract and as a result any additional requirement/change tends to be charged additionally. It is no surprise that IT requirements can change frequently and if your outsourcing contract doesn’t account for flexibility, you might be limited in the actual cost savings you might make. There is no surprise that there have been so many instances of IT outsourcing projects overshooting their budgets by a huge margin such as the one government shared services project going 500 million pounds over budget