5 ways your IT consultancy is losing money on bench time

First and foremost, what is bench time in IT consultancy?

Bench time occurs when IT consultants are between client projects but still on the payroll. While every consultancy expects some gap between assignments, this non-billable time directly impacts profitability. Whether it’s a cloud architect who’s just completed a major transformation project or a DevOps specialist waiting for their next assignment, bench time represents valuable expertise sitting idle instead of generating revenue. For many IT consultancies, managing bench time effectively is the difference between profit and loss. IT firms lose thousands each month due to avoidable bench time mismanagement. 

But it doesn’t have to be this way.

Take this scenario, your top cloud architect has just wrapped up a major digital transformation project. Now they’re sitting on the bench, costing your consultancy thousands in lost revenue each week. While some bench time is inevitable, most firms are losing more money than they realise through poor bench time management.

Top-performing consultancies maintain consultant utilisation rates of 80% or higher. Every percentage point below that benchmark directly impacts your bottom line. For a mid-sized consultancy with 50 consultants, even a 5% drop in utilisation can mean hundreds of thousands in lost revenue annually.

This blog explores five critical ways your bench time might be costing you money – and how modern resource management platforms like BenchBee help consultancies transform bench time into an opportunity.

The real impact of bench time on IT consultancies

Before diving into specific problems, let’s break down how bench time impacts your bottom line:

Measuring direct bench time costs:

• Lost billable hours (average £600-£1,000 per consultant per day)
• Continued salary and benefits overhead
• Training and certification maintenance expenses
• Project opportunity costs

Hidden costs of poor resource optimisation:

• Decreased team morale and potential attrition
• Skill degradation in fast-moving tech areas
• Administrative overhead from resource reshuffling
• Rushed placement decisions affecting project quality

How to calculate your bench time costs

Use this formula to estimate your monthly bench time impact:

Total Monthly Bench Time Cost =
Direct Cost of Benched Time + Overheads and Opportunity Costs

Where:

• Direct Cost of Benched Time = (Average Daily Rate × Number of Benched Consultants × Working Days)
• Overheads & Opportunity Costs = (Admin overhead + Training Costs + Opportunity costs)

For example, a consultancy with three senior consultants on the bench, each typically billing £800 per day, faces:

• Direct revenue loss: £48,000/month
• Administrative overhead: ~£5,000/month
• Training/certification costs: ~£2,500/month 
• Total monthly impact: £55,500

1. Reactive resource planning and allocation

Most consultancies treat bench time as an unavoidable cost of doing business. This reactive approach means consultants often sit idle for weeks between projects, directly impacting profitability.

The cost of reactive management

A London-based consultancy recently lost a month of billable time for two senior DevOps engineers between projects. Their experience shows how better resource optimisation could prevent significant losses:

• Lost revenue: £35,000
• Additional training costs: £3,000
• Team morale impact: One engineer left within 3 months
• Total impact: Over £50,000 including replacement costs

Solution: Implement proactive bench time management strategies:

• Start project pipeline planning 4-6 weeks before current projects end
• Maintain a real-time dashboard of upcoming project conclusions
• Develop strong client relationships for better demand forecasting
• Use resource optimisation tools to predict and prevent bench periods

2. Failing to maximise partial utilisation

When consultants are on the bench, many firms focus solely on finding their next major project. This all-or-nothing approach to resource optimisation overlooks valuable opportunities.

The power of partial allocation

A Manchester-based consultancy transformed their approach to bench time by splitting a senior cloud architect’s availability across three smaller projects:

• Original situation: Full bench time, £4,000 weekly revenue loss
• After splitting time: 80% utilisation across multiple clients
• Result: Recovered £3,200 weekly while maintaining consultant engagement
• Additional benefit: Expanded client relationships led to larger future projects

Solution: Implement flexible resource optimisation strategies:

• Break down consultant availability into bookable segments
• Look for smaller project opportunities within existing clients
• Consider internal improvement projects for partial utilisation
• Track and measure partial utilisation metrics

3. Ignoring skills development during bench time

With technology evolving rapidly, bench time can quickly lead to skill degradation. In fast-moving areas like cloud architecture and DevOps, even a few weeks of inactivity can impact consultant marketability.

The cost of skill stagnation

Recent industry analysis shows:

• Technical skills have a half-life of just 18-24 months
• Cloud certification value peaks within 6 months of achievement
• Consultants with recent hands-on experience command 20% higher rates
• Active learning during bench time can increase consultant billing rates by 15%

Solution: Transform bench time into strategic upskilling:

• Create structured learning pathways aligned with market demands
• Implement certification programs during bench periods
• Develop internal projects that build emerging tech skills
• Track and reward learning achievements

4. Overlooking partnership opportunities

Many consultancies handle bench time in isolation, missing valuable opportunities for resource sharing and collaboration. This siloed approach to resource optimisation limits growth potential and increases financial risk.

Collaborative resource management

A Leeds-based consultancy established a trusted partner network that transformed their approach to bench time:

• Reduced average bench time from 3 weeks to 5 days
• Generated £120,000 in additional revenue through partner projects
• Expanded service offerings without increasing headcount
• Improved consultant utilisation by 15%

Solution: Build strategic partnerships:

• Develop relationships with complementary consultancies
• Establish clear partnership agreements and quality standards
• Create efficient processes for resource-sharing
• Maintain control while expanding capabilities

5. Underestimating cultural impact

Beyond immediate financial losses, poor bench time management can significantly impact company culture and consultant retention. The hidden costs of decreased morale and increased turnover often exceed direct revenue losses.

The culture connection

A Birmingham-based firm tracked the relationship between bench time and consultant retention:

• Consultants experiencing >3 weeks of bench time showed 40% higher turnover
• Engagement scores dropped 25% during extended bench periods
• Proactive bench time management improved retention by 30%
• Enhanced culture led to improved recruitment outcomes

Solution: Implement comprehensive bench time management:

• Maintain transparent communication about pipeline and opportunities
• Involve benched consultants in strategic initiatives
• Create clear development paths during downtime
• Measure and monitor engagement metrics

Maximising ROI through effective bench time management

Transform your approach to bench time with these proven strategies:

Best practices for resource optimisation:

• Implement rolling 90-day resource forecasting
• Develop cross-project utilisation strategies
• Create structured learning programs for inevitable bench periods
• Build partner networks for resource sharing

Industry Benchmarks to Target:

• Maximum bench time per consultant: 2 weeks
• Minimum utilisation rate: 80%
• Learning program completion rate: 90%
• Project satisfaction scores: 4.5/5 or higher

BenchBee – the smarter way to manage your bench

Ready to rethink how your consultancy handles bench time? Discover how BenchBee’s platform helps consultancies maximise resource Optimisation and minimise bench time costs.

Transform your approach to bench time management. See how BenchBee’s platform can help you maximise consultant utilisation and boost profitability. Sign-up today.