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.