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A sizeable number of IT service providers (ITSPs) don’t hit their goals for utilization, and some don’t even track billable time, according to findings from the 2014 IT Service Provider Benchmarking Survey.
Take a look at these findings on surveyed ITSPs:
The billable rate goals you set need to be realistic for your business. There is no ‘one size fits all.’ Often, planned downtime (i.e., administrative tasks, vacation or sick time) isn’t factored in to goals and can, in fact, impact actual billable time achieved. Industry benchmarks identify a range of 80-90% billable time as a realistic goal. If your targets are higher, it’s important to establish a clear plan for how you’re going to achieve those goals.
Consider another group of findings:
Recapturing lost hours through automation is the key to booking more billable time with the same resources, thereby increasing revenues without raising rates.
Automation does more than take the task out of technicians’ hands. It can:
As an ITSP grows, having an automated business platform ensures that growth is as profitable as it can be. Also, through the knowledge gained by tracking and benchmarking, an ITSP can set realistic utilization rates based on a competitive hourly rate.
Before looking to your customers to boost your revenues, take a look inside your business. Automation might be the answer.
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