Margin acceleration
A quick and dirty guide
Deal margins, fixed bid and staff aug / T&M levers, held in one view.
67
Levers mapped
3
Margin engines
SIZING
- Ticket volumes
- Ticket patterns
- Support window
- Multi country support
- Language support
- L1-L4 distribution
- Non ticketed effort
- Service requests
- Last mile services
- EoL / EoS services
- SLA Deliverability
EFFORT TO FTE CONVERSION
- Service level productivity
- Volume reduction
- Self help
- Automation
- Agentic solutions
- Retained Vs Contractor productivity
FTE TO PRICE CONVERSION
- Pyramid
- On / Off ratio
- Contractor
- YoY redn - deliverability
- Skill mark ups
- SFIA-9 Alignment (UK)
- AI markups
- AI Tokenisation charges
- SLA Penalty estimates
DELIVERY
- Transition costs / over runs
- Milestone Credits / Debits
- Volumetrics (BvD)
- ARC / RRC
- SLA Compliance Vs effort
- Penalty payouts
- Unclaimed earnouts
- Asset refresh deferral
- FTE Numbers BvD / YoY
OPERATIONAL LEVERS
- Pyramid BvD / YoY
- On / Off BvD / YoY
- Onsite - Country / County
- Contractors / Ageing
- Role rotation
- Lead time to deploy / Bill
- Lead time to onboard
- KT Bubble time
- Insitu promotion control
CONTRACTUAL LEVERS
- CoLA
- Billing hours (Contract Vs Actual)
- Leave coverage billing
- T&E claims Mgmt
- License cost claims
- Rate card refresh for AI / Niche skills
- Billing accuracy
- Volumetrics (ARC / RRC)
- OT
OPERATIONAL LEVERS
- Visa holders > Local hires > Offshore
- Contractor rates, Hops
- Role rotation
- Promote-rotate / rate increase
- Right rate - Right role; Exp mismatch
- Contractor replacement; Ageing
- Revenue / Billed FTE trend
- OM / Billed FTE trend
- Cross SL Leaks (Margin, Price) for same role
- Cross A/C Leaks (Margin, Price) for same role
- Lead time to deploy / Bill
- Lead time to onboard
- KT Bubble time loss / Billing
- Internal benchmarking and shift the mean