Now Reading: GCC Resource Margin Calculator
1
-
01
GCC Resource Margin Calculator
GCC Resource Margin Calculator
| Proposed Role | Sell Rate | Buy Rate | Benefits % | Overhead % | Bench % | Target Margin % | Inflation % | Calculate |
|---|---|---|---|---|---|---|---|---|
| Proposed Role | Internal Cost | Effective Cost | Gross Margin | Margin % | Gap to Target | Year 1 | Year 3 | Year 5 |
|---|
Purpose of the Tool:
This tool helps Global Capability Centers (GCCs) evaluate the profitability of individual staffing roles by calculating internal costs, effective margins, and projected billing over 3 and 5 years, taking into account inflation. It’s designed for financial planners, HR leads, and delivery managers to build business cases or improve pricing strategy.
How This Tool Is Useful:
- Shows precise margin per role
- Highlights profitability and target gaps
- Projects billing rates for 3 and 5 years
- Helps in pricing, planning, and decision-making for GCC operations
- Use it to justify rates, optimize costs, and benchmark ROI per resource
Result Breakdown
| Internal Cost | Sum of base salary + benefits + overhead — shows what the role costs you internally |
| Effective Cost | Adjusted internal cost with bench time included — reflects real-world deployment cost |
| Gross Margin ($) | The actual dollar profit made per month per resource after internal costs |
| Margin % | The percentage of profit you make per billing dollar — critical for pricing strategy |
| Gap to Target Margin | Tells you how far below or above your target margin the resource currently sits |
| Projected Billing | Future billing rates for 3 and 5 years, adjusted for inflation |
Disclaimer – This tool is meant to provide quick, general insights, not exhaustive advice. They should not replace professional consultation or in-depth analysis. Users are encouraged to verify information and seek expert guidance before making decisions.