Commercial
Utilisation rate
The share of paid hours a provider actually bills to clients.
Definition
The proportion of a person's or a team's available time that is charged to client work, as opposed to bench time, internal projects, training and admin. It is a core metric inside services businesses and rarely shown to buyers.
Why it matters
It explains provider behaviour you would otherwise find puzzling. High target utilisation is why a provider pushes to fill a seat fast and resists pausing an engagement. If you plan a gap between phases, say so early, because a provider managing utilisation will reassign your people rather than hold them idle.
Related
Read next
Bench
Staff a provider is paying for but has not placed.
Read the definition ›Blended rate
One averaged rate charged across a team of mixed seniority.
Read the definition ›Capacity planning
Matching the work you expect to the people who can do it.
Read the definition ›Ramp-down
Ending or shrinking an engagement in a planned way.
Read the definition ›Next step
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