How Can ITSPs Maximize Billable Hours?

Billable resource utilization remains a top priority for many departments within IT service providers (ITSPs), according to a recent survey of 1,100 ITSPs conducted by professional services automation (PSA) software provider Autotask. 

The survey, titled “Metrics That Matter 2016,” indicated finance was most concerned with billable resource utilization.

Also, the survey showed, service/help desk and project management ranked billable resource utilization second among its most emphasized metrics, while executive management rated it third. 

“While it’s good to have utilization in the 80 [percent] to 90 percent range based on expertise, paid time off and administrative tasks, other factors impact profitability,” Autotask wrote in its report. 

Profitable time trumps billable time, Autotask said, so ITSPs with the most billable hours do not always win. 

“Profitability by contract and service are where the game is won or lost in the long term,” Autotask noted. 

Maximizing billable hours requires ITSPs to focus on several key areas, including:

Patrick Burns, Autotask’s vice president of product management, added ITSPs can focus on being “vertically integrated around endpoints” to help customers operate safely and efficiently within an expanding network of endpoints.

“We’re moving to a device-centric world, and providers who can help customers drive value around the growing use of devices will be a profitable part of that world,” he said in a statement. 

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