Utilisation rate

The proportion of billable staff actually deployed on client work. For Indian information technology services the healthy band runs from 82% to 87%.

The measure is the operating leverage of a people business. Staff on the bench cost the same and earn nothing, so a few points of utilisation move the operating margin materially.

It also has a ceiling. Running above the band means no capacity for training, no buffer for a new project, and rising attrition as people burn out.

High utilisation with falling headcount is margin bought from the future.