Are salaries direct costs for professional services firms?
Are salaries direct costs for professional services firms?
Yes, salaries are direct costs for professional services firms. For PS firms, a direct cost is any cost that is directly associated with the delivery of a project or service.
In “The Professional Services Firm Bible,” Baschab and Piot also note that “salaries and benefits are usually the largest direct cost by far in a professional services firm.”
Richard Blatcher
As the Senior Director for Product and Industry Solutions Marketing at Wrike, Richard manages the global go-to-market approach in strategic industries, including professional services. He has over 30 years’ experience in the industry, managing the delivery of marketing and sales enablement offerings to professional services, manufacturing, and distribution blue-chip enterprises. He previously worked at Autodesk, where he was responsible for market launches of SaaS solutions.
