Client: Managed Services Company
A multi-million dollar managed services firm, with operations in Canada and India, had a poor handle on the cost of providing its services to dozens of clients, and has thus been only marginally profitable
3 Key Insights:
- Sapling created a monthly detailed client costing worksheets using information from several different sources, providing margins for every client based on employee workload, travel expenses, server and hosting costs, product costs, etc.
- Findings have led to initiatives to re-examine customer pricing and invoicing, improve tracking of employee hours, and tilt the business towards the more profitable service offerings
- Updated analysis of the costing worksheets was conducted at regular intervals to fine tune the cost reduction approach