GASP
Professional Services Profitability Metrics Outcome

Services Gross Margin

Services Gross Margin: Services revenue minus direct delivery costs.

Formula

Services Gross Margin = (Services revenue - Direct delivery cost) / Services revenue × 100

Benchmarks

  • Below 20%: Unprofitable, review pricing
  • 20-30%: Low margin
  • 30-40%: Average
  • 40-50%: Good
  • Above 50%: Excellent
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GASP Standard v1 · Last updated

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