September 01, 2012

Internal Bill Rates: Trends and Insights

We carried out a full analysis of bill rates over time and type of non-managerial services by service types. It is a quick snapshot commentary on way the internal job rates have been, driven by local and company-specific factors apart from national trends.

What do the graphs convey?

The graph on the left is a relative comparison between average billing rates during the period 2007-2012. Graph on the right shows trend chart of billing rate fluctuations over same period and category.

Some key insights include the following:

  • Operations (Production) bill rates showed fluctuations post recession and were relatively stable before the period.
  • The trend in Technical/IT and Clerical/Admin jobs is the reverse, wherein relatively volatile trends of past gave way to recent stabilization of rates.
  • Material management jobs have been steady post-recession and higher in wage terms, though not very many in numerical terms.
  • Tradesmen and Quality/QA service categories show decline in wages, which is a reflection of the demand-supply situation that has been skill-surplus since recession.
  • Policy shifts and internal decisions have resulted in few service categories no longer hiring contractors. Notable are Facilities and Medical service types.