Time vs. Money
How much is NOT outsourcing costing you?
Lawyers
Joe, a real estate lawyer, knows that the more hours he spends on billable tasks, the better his profitability. Here’s how outsourcing increases Joe’s income in a typical work week.
Inhouse
Billing rate - $250/hr |
Hours |
Cost |
Billed |
Average weekly hours worked |
54 |
|
|
Average weekly non-billable hours |
12 |
|
|
Actual hours worked |
54 |
|
|
Actual hours billed |
42 |
|
$10,500 |
Actual hourly rate $194
Outsourcing Scenario:
This scenario assumes 50% (6 hours) of Joe’s non-billable hours are related to business administration. Of the remaining 42 billable hours, 13 are associated with client-related administrative tasks – correspondence, court filing, research, legal document generation, mass mailings, appointment scheduling, etc.
Numbers:
| Outsource: | Hours |
Cost |
Billed |
Non-billable hours |
6 |
$510 |
$0 |
Billable hours |
13 |
$1,105 |
$3,250 |
Total Outsourced /wk |
19 |
$1,615 |
$3,250 |
|
|
|
|
Actual hours worked non-billable |
6 |
|
|
Actual hours worked billable |
44 |
|
$11,000 |
Hours billed for Phoenix |
13 |
|
$3,250 |
Actual hours worked |
50 |
|
|
Actual hours billed |
57 |
|
$14,250 |
Actual hourly rate $285
REVENUE INCREASE $91/hr or 47%!
Source: American Bar Association and Phoenix Initiatives data
See more examples.