Margin Intelligence for IT Services
Technology service providers managing contract margin, billing rates, and delivery cost recovery. MarginCOS gives your leadership visibility on which service lines and clients are loss-making — and exactly how much is recoverable.
Where Your Margin Leaks
Service Rate Intelligence
The Problem
Most IT services firms have billing rates set before salary inflation and FX-driven licence cost increases compounded. They are delivering engagements below their cost-to-serve without knowing which service lines are worst — because nobody has calculated the fully-loaded cost per billable hour.
What MarginCOS Delivers
Who Uses This
Cost Pass-Through
The Problem
Salary inflation and USD-denominated software licence costs have surged but billing rates haven't kept pace. The gap between delivery cost and contracted rate compounds every quarter it goes unpriced — eroding margin on engagements that appear profitable on revenue.
What MarginCOS Delivers
Who Uses This
Client Mix Analysis
The Problem
Revenue per client looks healthy until account management overhead, support cost, scope creep hours, and payment terms are deducted — revealing that some client relationships cost more to serve than they generate in margin.
What MarginCOS Delivers
Who Uses This
Discount & Scope ROI
The Problem
Every proposal discount and scope addition erodes margin. Without per-engagement profitability visibility, discounts are offered to win work that is structurally unprofitable at the discounted rate — and scope creep is absorbed without commercial consequence.
What MarginCOS Delivers
Who Uses This
Advanced Intelligence Modules
Enterprise clients access four advanced analytical modules that go deeper — portfolio-level rationalisation, forward scenario planning, commercial spend analytics, and partner performance scorecards. These run on the same data alongside the four core pillars.
Service Portfolio Rationalisation
Classify every service line into a defend / reprice / exit framework based on margin contribution vs. strategic importance and client demand.
Salary & FX Scenario Engine
Model salary inflation and FX trajectories — see at what FX rate each service line breaks its cost floor and what billing rate adjustment is needed.
Proposal Discount ROI
Calculate the return on every proposal discount offered. Surface which wins generated margin and which were structurally unprofitable from day one.
Client Profitability Scorecard
Rank every client relationship by true net margin contribution after delivery, support, and overhead costs. Identify who to grow, renegotiate, or exit.
IT Services Support is in Development
We're building sector-specific analytical configurations for IT Services. Join the waitlist to be notified when it launches.
Or book a conversation to discuss your specific requirements.