There are potentially many reasons why you would consider us as an alternative to permanent employees or contractors, however a very good starting point is to have a clear idea of what is the actual true cost per day when you include cost per day and also efficiency.
Before we continue let’s ask a question. Does the total cost of a project matters to you? If you have a full-time Power BI developer and the total cost per year is £75,000 (£50k salary + £25k other direct costs to an employee) what does it actually mean? It doesn’t really answer a very important question which is the project performance per day, we would have to take a project and let’s say the project costs £37500 and takes 6 months to complete, this is our basis for calculating performance of a Power BI resource and a given project, let’s divide £37,500 by 120 working day and we get £312.5/day.
Is that a lot? Is that good or bad?
We don’t know the answer to this question until we compare this value to alternatives and full potential.
A very important aspect of the calculation is efficiency. If you run at 100% efficiency, that means that no matter how hard you try you cannot deliver the project in less than 120 days, that is the minimum to deliver.
However we need to understand what is the actual efficiency of this particular project, let’s make some assumptions:
- Let’s assume that the person works efficiently 6h a day out of 7.5h a day, and spends the remaining time on breaks, chats, meetings not related to the project that are non-essential etc. that means that productive is reduced by 1.5h a day which is equal to 20%
- Let’s assume the resource you have completes on average tasks with 75% efficiency (time to do it + management), which means that if the lowest possible time to complete certain tasks is 10h then takes your developer will complete in 13.3h (10 / 75%) which reduces our efficiency from 80% to 60%.
If the total project takes 120 days with efficiency of 60% then the lowest time to deliver a project is 72 days. If we take cost per day of £312.5 * by 72 (instead of 120) then the lowest project cost with this particular resource is £22500 instead of £37500 which is quite of a difference.
Let’s compare to a contractor at £600/day (£500 market rate + 20% agency fee). This gives us £600 * 120 days = £72,000 and if we take 100% efficiency it’s £600 * 72 days = £43,200.
When we run a Power BI project we have no down time and we run on average with efficiency of 95%.
Our price is £375/day for global flexi team or £575/day for local flexi team and with 95% efficiency that costs are:
- £375/day * 76 days (72 * 95% efficiency) = £28,500
- £575/day * 76 days (72 * 95% efficiency) = £43,700
As you can see the total cost for a Global team is significantly lower, and local time is a bit lower comparing to permanent employee and noticeably lower comparing to a contractor.
Also bear in mind that running at 95% efficiency, our Flexi Team can deliver a project not in 120 working days (6 months) but in 76 days which is less than 4 months and additionally our flexi team can offer extra hours per day, and reduce time to deliver to let’s say 3 months or less.