{"id":7445,"date":"2024-05-27T11:21:50","date_gmt":"2024-05-27T09:21:50","guid":{"rendered":"https:\/\/veryswing.com\/8-performance-indicators-to-manage-your-esn.html"},"modified":"2024-06-14T10:19:42","modified_gmt":"2024-06-14T08:19:42","slug":"8-performance-indicators-to-manage-your-it-services-company","status":"publish","type":"post","link":"https:\/\/veryswing.com\/en\/8-performance-indicators-to-manage-your-it-services-company.html","title":{"rendered":"8 performance indicators to manage your IT services company!"},"content":{"rendered":"\n<p>Whatever its size, to remain competitive and therefore sustainable, an IT services company needs to be efficient.<\/p>\n\n<p>This involves :<\/p>\n\n<ul class=\"wp-block-list\">\n<li>Monitor targets<\/li>\n\n\n\n<li>Assessing performance<\/li>\n\n\n\n<li>Take stock of the situation in figures<\/li>\n\n\n\n<li>Supporting important decisions<\/li>\n<\/ul>\n\n<p>To help you gain perspective on your IT services company&#8217;s results and facilitate decision-making, <strong>discover 8 performance indicators for effective management of your IT services company <\/strong>.<\/p>\n\n<p><\/p>\n\n<h2 class=\"wp-block-heading\">1. Sales figures<\/h2>\n\n<p><strong>Sales are a measure of a company&#8217;s ability to generate value. <\/strong><\/p>\n\n<p>When analyzing this performance indicator, we need to distinguish between several elements:<\/p>\n\n<ul class=\"wp-block-list\">\n<li>Invoiced sales, corresponding to all invoices;<\/li>\n\n\n\n<li>Revenue from services rendered;<\/li>\n\n\n\n<li>The invoice to be issued corresponds to services performed but not yet invoiced;<\/li>\n\n\n\n<li>Deferred revenues, corresponding to services not performed but invoiced.<\/li>\n<\/ul>\n\n<p><\/p>\n\n<h2 class=\"wp-block-heading\">2. Average Daily Cost (ADC)<\/h2>\n\n<p>The ADC provides a <strong>vision of the company&#8217;s profitability<\/strong>. It corresponds to what the employee costs the company every day.<\/p>\n\n<p><em>ADC employee = ( [salaire annuel brut + charges + Montants des divers avantages sur un an] \/ number of potential working days per year) X structure load factor.<\/em><\/p>\n\n<p><em>For an external employee, his daily purchase price is his CJM.<\/em><\/p>\n\n<p><\/p>\n\n<h2 class=\"wp-block-heading\">3. Average daily rate (ADR)<\/h2>\n\n<p>The ADR corresponds to the <strong>average amount billed to IT services companies&#8217;customers for one day<\/strong>.<\/p>\n\n<p>The rate must cover the ADR to avoid losses.<\/p>\n\n<p><em>ADR = invoiced sales over the selected period \/ number of days produced over the period<\/em><\/p>\n\n<p><\/p>\n\n<h2 class=\"wp-block-heading\">4. Excluded Leave Activity Rate (ELAR)<\/h2>\n\n<p>Also known as Staffing Rate, ELAR <strong>gives an overview<\/strong> of an IT services company&#8217;s operational performance. Excluding absences, this rate is relatively homogeneous for each month of the year.<\/p>\n\n<p><em>ELAR = (Number of days produced) \/ (Number of potential days &#8211; (CP + RTT))<\/em><\/p>\n\n<p><\/p>\n\n<h2 class=\"wp-block-heading\">5. Leave-inclusive activity rate (LIAR)<\/h2>\n\n<p>The LIAR keeps track of <strong>absences<\/strong> and gives an activity rate that can fluctuate much more than the ELAR for months with many absences (summer vacations, for example).<\/p>\n\n<p><em>LIAR = Number of days produced \/ Number of potential days<\/em><\/p>\n\n<p><\/p>\n\n<h2 class=\"wp-block-heading\">6. The margin<\/h2>\n\n<p>The margin is used to <strong>analyze the money earned by the company<\/strong> through its services.  <\/p>\n\n<p><em>Gross margin = ADR &#8211; ADC<\/em><\/p>\n\n<p>The margin rate will be: <em>(ADR &#8211; ADC) x 100 \/ ADC<\/em><\/p>\n\n<p><\/p>\n\n<h2 class=\"wp-block-heading\">7. Outstanding receivables<\/h2>\n\n<p>Outstanding receivables give an <strong>overview of the average number of days overdue for payment of your issued invoices and the total amount of your outstanding receiv<\/strong>ables. Excessive customer receivables can have a negative impact on an IT services company&#8217;s growth, since they worsen its cash position.<\/p>\n\n<p><\/p>\n\n<h2 class=\"wp-block-heading\">8. Workforce<\/h2>\n\n<p>The company&#8217;s employees also have an influence on IT services company&#8217;s profitability, since they represent <strong>a non-negligible cost<\/strong>.<\/p>\n\n<p>Several indicators can be used to assess workforce-related performance:<\/p>\n\n<ul class=\"wp-block-list\">\n<li>Turnover<\/li>\n\n\n\n<li>Average seniority<\/li>\n\n\n\n<li>The proportion of productive and non-productive employees<\/li>\n<\/ul>\n\n<p><\/p>\n\n<h2 class=\"wp-block-heading\">Manage your IT services company with ERP, an indispensable tool<\/h2>\n\n<p>Making <strong>decisions based on reliable data<\/strong> is very important for your IT services company.<\/p>\n\n<p>If you use Excel-type spreadsheets, or several independent management tools, several problems may arise:<\/p>\n\n<ul class=\"wp-block-list\">\n<li>Scattered data<\/li>\n\n\n\n<li>Exploiting this data becomes complex<\/li>\n\n\n\n<li>Your IT services company&#8217;s performance analysis is biased<\/li>\n<\/ul>\n\n<p><strong>There&#8217;s a solution to these problems: ERP software.<\/strong><\/p>\n\n<p>Specially designed for consulting companies, IT services company, this software will adapt perfectly to your activity.<\/p>\n\n<p>What&#8217;s more, it allows you to :<\/p>\n\n<ul class=\"wp-block-list\">\n<li>Centralize all your data <strong>in 1 single software package<\/strong><\/li>\n\n\n\n<li>Manage <strong>all types of data<\/strong> (CRM, HRIS, accounting, etc.)<\/li>\n\n\n\n<li><strong>Reliable, automatically updated data<\/strong><\/li>\n\n\n\n<li>Access <strong>dashboards, reports and performance indicators<\/strong><\/li>\n<\/ul>\n\n<p>Discover the power of our SaaS ERP VSActivity and all its <a href=\"https:\/\/vsactivity.com\/fonctionnalites\/\">features<\/a> during a <a href=\"https:\/\/vsactivity.com\/demo\/\">demo<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Whatever its size, to remain competitive and therefore sustainable, an IT services company needs to be efficient. This involves : To help you gain perspective on your IT services company&#8217;s results and facilitate decision-making, discover 8 performance indicators for effective management of your IT services company . 1. Sales figures Sales are a measure of [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":7283,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_robots_primary_cat":"none","_seopress_titles_title":"8 performance indicators for your IT services company - Veryswing","_seopress_titles_desc":"Discover the key performance indicators you need to manage your IT services company on a day-to-day basis and support your growth.","_seopress_robots_index":"","inline_featured_image":false,"footnotes":""},"categories":[1],"tags":[],"article--metier":[],"solution":[74],"class_list":["post-7445","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-non-classifiee","solution-vsa-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/veryswing.com\/en\/wp-json\/wp\/v2\/posts\/7445","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\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/veryswing.com\/en\/wp-json\/wp\/v2\/comments?post=7445"}],"version-history":[{"count":3,"href":"https:\/\/veryswing.com\/en\/wp-json\/wp\/v2\/posts\/7445\/revisions"}],"predecessor-version":[{"id":7587,"href":"https:\/\/veryswing.com\/en\/wp-json\/wp\/v2\/posts\/7445\/revisions\/7587"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/veryswing.com\/en\/wp-json\/wp\/v2\/media\/7283"}],"wp:attachment":[{"href":"https:\/\/veryswing.com\/en\/wp-json\/wp\/v2\/media?parent=7445"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/veryswing.com\/en\/wp-json\/wp\/v2\/categories?post=7445"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/veryswing.com\/en\/wp-json\/wp\/v2\/tags?post=7445"},{"taxonomy":"article--metier","embeddable":true,"href":"https:\/\/veryswing.com\/en\/wp-json\/wp\/v2\/article--metier?post=7445"},{"taxonomy":"solution","embeddable":true,"href":"https:\/\/veryswing.com\/en\/wp-json\/wp\/v2\/solution?post=7445"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}