Bench economics
Cost of idle team between projects
Input
Idle cost
8% of revenue
$16 628
- Bench/mo
- $12 000
- Bench/yr
- $144 000
Bench is outsourcing's hidden tax. Each benched person costs full value (salary+taxes+overhead). Bench >10% of staff — sell faster or downsize. Bench <3% — risk of not staffing a new project.