{"id":7432,"date":"2021-10-12T00:00:00","date_gmt":"2021-10-11T22:00:00","guid":{"rendered":"https:\/\/veryswing.com\/how-do-you-manage-your-digital-services-company.html"},"modified":"2026-08-19T15:42:17","modified_gmt":"2026-08-19T13:42:17","slug":"how-do-you-manage-your-digital-services-company","status":"publish","type":"post","link":"https:\/\/veryswing.com\/en\/how-do-you-manage-your-digital-services-company.html","title":{"rendered":"How do you manage your Digital Services Company?"},"content":{"rendered":"<p><strong>Reading time: 7 minutes.<\/strong><\/p>\n<p>Whatever its size, to remain competitive and therefore sustainable, an IT services company needs to be efficient.<\/p>\n<p>Steering an ESN is therefore vital, as it enables us to monitor the achievement of objectives, evaluate performance, diagnose the situation in figures, and support the decisions we need to make.<\/p>\n<p>According to <a href=\"https:\/\/www.implid.com\/article\/barometre-pme-eti-3eme-trimestre-2021-r-comme-revolutionnaire\" target=\"_blank\" rel=\"noopener\">a study conducted by Implid and Entreprise du futur<\/a>, one-third of companies prioritize accelerating their digital transformation to drive performance and operational excellence.<\/p>\n<p class=\"\" data-start=\"1076\" data-end=\"1152\"><span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">Managing an IT services company requires a thorough understanding of internal processes and the ability to adapt quickly to changes in the digital market.<\/span><\/p>\n<p>Visualizing the results of your Digital Services Company is a decision-making tool to help you grow your business.<\/p>\n<p><strong>In this article, we explain how to manage your ESN through various performance indicators. We&#8217;ll also talk about the tools available to you to support your piloting. <\/strong><\/p>\n<h2> <\/h2>\n<h2>The performance indicators you need to monitor to manage your ESN<\/h2>\n<p>The management of your ESN requires <strong>the assessment of key performance indicators<\/strong>. These will enable you to <strong>determine whether the actions you have put in place are conducive to achieving your objectives<\/strong>, or whether you need to readjust your strategy. <\/p>\n<p>KPIs (Key Performance Indicators) also allow you <strong>to<\/strong> take a <strong>long-term view and anticipate risks related to your business.<\/p>\n<p><\/strong><\/p>\n<h3>Sales figures<\/h3>\n<p>Sales are a <strong>measure of a company&#8217;s ability to generate value<\/strong>. When analyzing this performance indicator, we need to distinguish between several elements: <\/p>\n<ul>\n<li>Invoiced sales, corresponding to all invoices;<\/li>\n<li>Revenue from services rendered;<\/li>\n<li>The invoice to be issued corresponds to services performed but not yet invoiced;<\/li>\n<li>Deferred revenues, corresponding to services not performed but invoiced.<\/li>\n<\/ul>\n<p>Effective activity reporting makes it possible to track these elements in real time, thereby facilitating strategic decision-making.<\/p>\n<h3>Average Daily Cost (ADC)<\/h3>\n<p>The average daily cost is also a key performance indicator that an IT services company should monitor. It <strong>provides <a href=\"https:\/\/veryswing.com\/en\/how-do-you-manage-your-digital-services-company.html\" target=\"_blank\" rel=\"noopener\">insight into the<\/a><\/strong> company\u2019s <strong> profitability<\/strong>. The average daily cost corresponds to the estimated costs of an employee\u2019s work on a project.  <\/p>\n<p>There are several ways of calculating it, depending on the employee&#8217;s status.<\/p>\n<p>Simple calculations :<\/p>\n<table border=\"1\">\n<tbody>\n<tr>\n<td>CJM external collaborator = [(TJM excluding taxes X number of annual working days) + (monthly charges X12)] \/ Number of annual working days)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table border=\"1\">\n<tbody>\n<tr>\n<td>CJM internal employee = (gross annual salary \/ number of potential working days per year) X load factor)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Automating activity tracking makes it possible to calculate these costs accurately and quickly, thereby reducing human error.<\/p>\n<h3>Average Daily Rate (ADR)<\/h3>\n<p>The Average Daily Rate is the <strong>average amount billed to Digital Services Company customers<\/strong> for one day. The rate must cover the ADR to avoid losses. <\/p>\n<table border=\"1\">\n<tbody>\n<tr>\n<td>TJM = sales generated over the selected period \/ number of days generated over the period<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>A time-tracking tool simplifies the calculation of the average daily rate by consolidating billing and production data.<\/p>\n<h3>Activity rate excluding vacations (TACE)<\/h3>\n<p>Also known as the staffing rate, the activity rate excluding leave <strong>provides insight into the<\/strong> digital services company\u2019s <strong>operational performance<\/strong>.<\/p>\n<table border=\"1\">\n<tbody>\n<tr>\n<td>ELAR = (Number of days produced) \/ (Number of potential days &#8211; (CP + RTT))<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>This rate is essential for performance management, as it reflects the actual utilization of human resources.<\/p>\n<h3>Activity rate including vacations (TACI)<\/h3>\n<p>The same as TACE, except that vacations are included.<\/p>\n<table border=\"1\">\n<tbody>\n<tr>\n<td>TACI = Number of days produced \/ (Number of potential days)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Monitoring consultants using these metrics helps optimize project planning and resource management.<\/p>\n<h3>The workforce<\/h3>\n<p>The company&#8217;s employees also have an influence on the profitability of the Digital Services Enterprise, since<strong>they have a non-negligible cost<\/strong>.<\/p>\n<p>Several indicators can be used to assess workforce-related performance:<\/p>\n<ul>\n<li>Turnover;<\/li>\n<li>Average seniority.<\/li>\n<\/ul>\n<p class=\"\" data-start=\"4354\" data-end=\"4434\"><span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">An ERP system allows you to centralize employee information, making it easier to analyze these metrics while complying with <a href=\"https:\/\/veryswing.com\/en\/rgpd-gdpr.html\" target=\"_blank\" rel=\"noopener\">GDPR regulations<\/a>.<\/span><span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\"><br \/><\/span><em data-start=\"4354\" data-end=\"4395\"><span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\"><br \/><\/span><\/em><\/p>\n<h3>The margin<\/h3>\n<p>Margin is also a good indicator of ESN performance, since it allows us to <strong>analyze the money earned by the company<\/strong> through its services.<\/p>\n<table border=\"1\">\n<tbody>\n<tr>\n<td>Gross margin = TJM &#8211; gross salary<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Performance management requires regular analysis of margins.<\/p>\n<h3>Outstanding receivables<\/h3>\n<p>Outstanding receivables provide an <strong>overview of the average number of days your invoices are overdue<\/strong> and the total number of outstanding receivables. Outstanding accounts receivable can have a negative impact on ESN&#8217;s growth, as it worsens the cash position. <\/p>\n<table border=\"1\">\n<tbody>\n<tr>\n<td>Trade accounts receivable = Trade accounts receivable + Discounted bills of exchange &#8211; Advances and deposits received on orders in progress<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p class=\"\" data-start=\"5154\" data-end=\"5234\"><span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">An ERP system for digital services companies allows these outstanding balances to be tracked in real time, thereby simplifying cash flow management.<\/span><span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\"><br \/><\/span><em data-start=\"5154\" data-end=\"5195\"><span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\"><br \/><\/span><\/em><\/p>\n<h2>The essential tool for managing your ESN<\/h2>\n<p>It&#8217;s one thing to know the performance indicators you need to manage your ESN, but it&#8217;s equally important to create dashboards to monitor these different indicators. On the other hand, making <strong>decisions based on reliable data is a very important point, indeed the most important<\/strong>. <\/p>\n<p><strong> <\/strong><\/p>\n<p>Yes, dashboards <strong>and charts are great tools<\/strong> for tracking the performance of your digital services business. You have a clear idea of where improvements are needed. <\/p>\n<p>However, if you use spreadsheet programs like <a href=\"https:\/\/veryswing.com\/en\/the-limits-of-excel-in-managing-it-services-company.html\" target=\"_blank\" rel=\"noopener\">Excel<\/a> or multiple management tools that are independent of one another, several issues may arise:<\/p>\n<ul>\n<li>The data are scattered;<\/li>\n<li>Data differ from one software package to another, or from one file to another, making it difficult to exploit the data and thus analyze ESN performance.<\/li>\n<\/ul>\n<p>This is why, when you use an ERP-type management tool, you <strong>have :<\/strong><\/p>\n<ul>\n<li>First,<strong> several UN-based software applications ( <\/strong>CRM, <a href=\"https:\/\/veryswing.com\/en\/our-solutions\/vsexperience\" target=\"_blank\" rel=\"noopener\">HRIS<\/a>, accounting, etc.), which <strong>allow for the centralization of data;<\/strong><\/li>\n<li>secondly, the <strong>data <\/strong>is<strong> updated automatically<\/strong> and every time an employee performs an action, ensuring that <strong>the information is up to date and reliable<\/strong>.<\/li>\n<\/ul>\n<p class=\"\" data-start=\"6527\" data-end=\"6607\"><span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">An ERP system for IT services companies provides a comprehensive overview of business processes, from IT project management to consultant tracking, as well as billing and human resources management.<\/span><\/p>\n<p class=\"\" data-start=\"6609\" data-end=\"6827\">In addition, the Business Intelligence technology built into the ERP solution correlates the various integrated data points and automatically generates reports to measure performance.<\/p>\n<p class=\"\" data-start=\"6829\" data-end=\"6909\"><span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">Integrating a time-tracking tool also automates activity tracking, thereby reducing administrative tasks and improving data accuracy.<\/p>\n<p><\/span><\/p>\n<h2 class=\"\" data-start=\"170\" data-end=\"219\">Manage Your Digital Services Company Effectively with VSActivity<\/h2>\n<p class=\"\" data-start=\"221\" data-end=\"397\">Rigorous, centralized management is essential to ensuring the profitability, operational performance, and sustainable growth of a digital services company.<\/p>\n<p class=\"\" data-start=\"399\" data-end=\"634\">With this in mind, we have developed <a href=\"https:\/\/veryswing.com\/en\/our-solutions\/vsactivity\" target=\"_blank\" rel=\"noopener\"><strong data-start=\"449\" data-end=\"463\">VSActivity<\/strong><\/a>, our ERP software designed specifically for digital services companies. It helps you optimize your business operations, manage your resources, and track your IT projects. <\/p>\n<h3 class=\"\" data-start=\"636\" data-end=\"687\">Centralize your data and gain greater visibility<\/h3>\n<p class=\"\" data-start=\"689\" data-end=\"800\">With <strong data-start=\"697\" data-end=\"711\">vsa<\/strong>, you gain a comprehensive and unified view of all your business processes:<\/p>\n<ul data-start=\"802\" data-end=\"1053\">\n<li class=\"\" data-start=\"802\" data-end=\"859\">\n<p class=\"\" data-start=\"804\" data-end=\"859\">Tracking assignments and time spent by each consultant;<\/p>\n<\/li>\n<li class=\"\" data-start=\"860\" data-end=\"928\">\n<p class=\"\" data-start=\"862\" data-end=\"928\">Performance management using comprehensive dashboards;<\/p>\n<\/li>\n<li class=\"\" data-start=\"929\" data-end=\"995\">\n<p class=\"\" data-start=\"931\" data-end=\"995\">IT project management with precise task planning;<\/p>\n<\/li>\n<li class=\"\" data-start=\"996\" data-end=\"1053\">\n<p class=\"\" data-start=\"998\" data-end=\"1053\">Automated and customizable activity reporting.<\/p>\n<\/li>\n<\/ul>\n<h3 class=\"\" data-start=\"1055\" data-end=\"1114\">Automate activity tracking and time management<\/h3>\n<p class=\"\" data-start=\"1116\" data-end=\"1157\">VSActivity enables your company to:<\/p>\n<ul data-start=\"1159\" data-end=\"1404\">\n<li class=\"\" data-start=\"1159\" data-end=\"1211\">\n<p class=\"\" data-start=\"1161\" data-end=\"1211\">Automate <a href=\"https:\/\/veryswing.com\/en\/all-features\/erp-software-for-activities-management\" target=\"_blank\" rel=\"noopener\">time entry and approval<\/a>;<\/p>\n<\/li>\n<li class=\"\" data-start=\"1212\" data-end=\"1282\">\n<p class=\"\" data-start=\"1214\" data-end=\"1282\">Manage your employees&#8217; absences, time off, and availability;<\/p>\n<\/li>\n<li class=\"\" data-start=\"1283\" data-end=\"1331\">\n<p class=\"\" data-start=\"1285\" data-end=\"1331\">Anticipate underloading and overloading;<\/p>\n<\/li>\n<li class=\"\" data-start=\"1332\" data-end=\"1404\">\n<p class=\"\" data-start=\"1334\" data-end=\"1404\">Track key financial and operational metrics in real time.<\/p>\n<\/li>\n<\/ul>\n<h3 class=\"\" data-start=\"1406\" data-end=\"1468\">Why Choose VSActivity for Managing an IT Services Company?<\/h3>\n<p class=\"\" data-start=\"1470\" data-end=\"1588\">Choosing <strong>vsa<\/strong> means adopting an ERP system designed for the specific needs of digital services companies, with tangible benefits:<\/p>\n<ul data-start=\"1590\" data-end=\"1866\">\n<li class=\"\" data-start=\"1590\" data-end=\"1657\">\n<p class=\"\" data-start=\"1592\" data-end=\"1657\"><a href=\"https:\/\/veryswing.com\/en\/why-and-how-to-centralize-your-information-system.html\" target=\"_blank\" rel=\"noopener\">Centralization of data<\/a> (CRM, <a href=\"https:\/\/veryswing.com\/en\/all-features\/hr-management-software\" target=\"_blank\" rel=\"noopener\">HR management<\/a>, projects, finance);<\/p>\n<\/li>\n<li class=\"\" data-start=\"1658\" data-end=\"1733\">\n<p class=\"\" data-start=\"1660\" data-end=\"1733\">Reduction of manual tasks through the automation of activity tracking;<\/p>\n<\/li>\n<li class=\"\" data-start=\"1734\" data-end=\"1803\">\n<p class=\"\" data-start=\"1736\" data-end=\"1803\">Decision-making facilitated by up-to-date and reliable indicators;<\/p>\n<\/li>\n<li class=\"\" data-start=\"1804\" data-end=\"1866\">\n<p class=\"\" data-start=\"1806\" data-end=\"1866\">Time savings and improved project profitability.<\/p>\n<\/li>\n<\/ul>\n<p class=\"\" data-start=\"1868\" data-end=\"2023\">But that&#8217;s not all! Whether you&#8217;re a consulting firm, a service company, or a software publisher, VSActivity lets you effectively manage: <\/p>\n<ul data-start=\"2025\" data-end=\"2265\">\n<li class=\"\" data-start=\"2025\" data-end=\"2086\">\n<p class=\"\" data-start=\"2027\" data-end=\"2086\">Your <a href=\"https:\/\/veryswing.com\/en\/all-features\/crm-sales-software\" target=\"_blank\" rel=\"noopener\">sales management<\/a> (quotes, orders, invoicing);<\/p>\n<\/li>\n<li class=\"\" data-start=\"2087\" data-end=\"2153\">\n<p class=\"\" data-start=\"2089\" data-end=\"2153\">Your <a href=\"https:\/\/veryswing.com\/en\/all-features\/erp-finance-software\" target=\"_blank\" rel=\"noopener\">financial management<\/a> (cash flow, accounts receivable, margins);<\/p>\n<\/li>\n<li class=\"\" data-start=\"2154\" data-end=\"2194\">\n<p class=\"\" data-start=\"2156\" data-end=\"2194\">Your <a href=\"https:\/\/veryswing.com\/en\/all-features\/erp-software-for-activities-management\" target=\"_blank\" rel=\"noopener\">time and activity management<\/a>;<\/p>\n<\/li>\n<li class=\"\" data-start=\"2195\" data-end=\"2265\">\n<p class=\"\" data-start=\"2197\" data-end=\"2265\">Consultant oversight and end-to-end IT project management.<\/p>\n<\/li>\n<\/ul>\n<p class=\"\" data-start=\"2267\" data-end=\"2418\"><a href=\"https:\/\/veryswing.com\/en\/request-a-demonstration\" target=\"_blank\" rel=\"noopener\">Request your free demo<\/a> today and discover how VSActivity can become the true control center for your digital services agency.<\/p>\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Reading time: 7 minutes. Whatever its size, to remain competitive and therefore sustainable, an IT services company needs to be efficient. Steering an ESN is therefore vital, as it enables us to monitor the achievement of objectives, evaluate performance, diagnose the situation in figures, and support the decisions we need to make. According to a [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5581,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_titles_title":"How do you manage your Digital Services Company?","_seopress_titles_desc":"Learn how to manage your digital services company using the right metrics (TJM, TACE, TACI, etc.), a suitable ERP system, and automated activity tracking with VSActivity.","_seopress_robots_index":"","_seopress_robots_follow":"","_seopress_robots_imageindex":"","_seopress_robots_snippet":"","_seopress_robots_primary_cat":"none","_seopress_robots_breadcrumbs":"","_seopress_robots_freeze_modified_date":"","_seopress_robots_custom_modified_date":"","_seopress_robots_canonical":"","_seopress_social_fb_title":"","_seopress_social_fb_desc":"","_seopress_social_fb_img":"","_seopress_social_fb_img_attachment_id":0,"_seopress_social_fb_img_width":0,"_seopress_social_fb_img_height":0,"_seopress_social_twitter_title":"","_seopress_social_twitter_desc":"","_seopress_social_twitter_img":"","_seopress_social_twitter_img_attachment_id":0,"_seopress_social_twitter_img_width":0,"_seopress_social_twitter_img_height":0,"_seopress_redirections_value":"","_seopress_redirections_enabled":"","_seopress_redirections_enabled_regex":"","_seopress_redirections_logged_status":"both","_seopress_redirections_param":"","_seopress_redirections_type":301,"_seopress_analysis_target_kw":"","_seopress_news_disabled":"","_seopress_video_disabled":"","_seopress_video":[],"_seopress_pro_schemas_manual":[],"_seopress_pro_rich_snippets_disable_all":"","_seopress_pro_rich_snippets_disable":[],"_seopress_pro_schemas":[],"inline_featured_image":false,"footnotes":""},"categories":[1],"tags":[],"article--metier":[81],"solution":[74],"class_list":["post-7432","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-non-classifiee","article--metier-esn","solution-vsa-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/veryswing.com\/en\/wp-json\/wp\/v2\/posts\/7432","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/veryswing.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/veryswing.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/veryswing.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/veryswing.com\/en\/wp-json\/wp\/v2\/comments?post=7432"}],"version-history":[{"count":2,"href":"https:\/\/veryswing.com\/en\/wp-json\/wp\/v2\/posts\/7432\/revisions"}],"predecessor-version":[{"id":131149,"href":"https:\/\/veryswing.com\/en\/wp-json\/wp\/v2\/posts\/7432\/revisions\/131149"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/veryswing.com\/en\/wp-json\/wp\/v2\/media\/5581"}],"wp:attachment":[{"href":"https:\/\/veryswing.com\/en\/wp-json\/wp\/v2\/media?parent=7432"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/veryswing.com\/en\/wp-json\/wp\/v2\/categories?post=7432"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/veryswing.com\/en\/wp-json\/wp\/v2\/tags?post=7432"},{"taxonomy":"article--metier","embeddable":true,"href":"https:\/\/veryswing.com\/en\/wp-json\/wp\/v2\/article--metier?post=7432"},{"taxonomy":"solution","embeddable":true,"href":"https:\/\/veryswing.com\/en\/wp-json\/wp\/v2\/solution?post=7432"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}