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Why internal - only staffing breaks Anaplan partner economics

Updated: Feb 10




Before getting into numbers, it’s worth being clear about the problem we’re actually solving.  Across the Anaplan partners I work with in Western Europe, profitability rarely breaks because rates are wrong. It breaks because demand is volatile and cost is fixed


Projects pause. Deals slip. New work appears late. Peaks and troughs are the norm, not the exception.  An internal-only staffing model absorbs all of that volatility. A hybrid model does not. 


What follows is a simplified example of practice economics I see repeatedly across partners. If you look at the US or parts of Asia, absolute numbers may differ. The structural dynamics do not. 

 

The mindset shift partners struggle with 

Most partners still treat contractors as: 

  • emergency capacity 

  • a last-minute fix 

  • something that hurts margin 


That framing almost guarantees poor outcomes. 

In a healthy operating model, contractors are: 

  • a baseline part of delivery 

  • scaled up and down deliberately 

  • used to protect margin in downturns 

  • used to capture revenue in spikes 


In other words, they are a structural lever, not a reaction. 

 

Why steady-state economics matter 

A common objection I hear is: 

“Contractors are fine in spikes, but they hurt us in normal quarters.” 

That only happens if contractors are treated as an exception. 


In a mature hybrid model: 

  • the internal team is sized for predictable core demand 

  • a small external layer is always present 

  • cost structure becomes more variable 

  • steady-state margins remain comparable

     

The benefit is not higher margin in every quarter. The benefit is lower downside and higher upside over time

 

One practical nuance partners often miss 

A contractor you already work with is not the same as a contractor you need tomorrow. 


In practice, across Western Europe: 

  • a steady, pre-engaged contractor is often ~20% cheaper 

  • last-minute capacity commands a premium 

  • delivery risk is lower with people who know your standards 


This is another reason contractors work best as a standard operating layer, not a panic button. 

 

Demand spikes are not just a quarterly problem

One more point that rarely shows up in quarterly tables. 

When a partner cannot staff a demand spike: 

  • deals are delayed 

  • scope is reduced 

  • or work is lost entirely 


In practice, a portion of that demand does not return in future quarters. 

Even conservative assumptions (20–30% permanently lost) change the economics materially.  This is exactly the gap the SKU Point Planning Bench is designed to address: having trusted, ready-to-deploy capacity that allows partners to absorb spikes without sacrificing margin, quality, or people. 

 

The economics: internal-only vs hybrid model 

Assumptions (simplified, Western Europe) 

  • Client billable rate: 1,500 EUR / MD 

  • External contractor cost (steady): 900 EUR / MD 

  • Fully loaded internal consultant cost: 20,000 EUR / quarter 

  • Working days per quarter: 60 


Operating models 

  • Internal-only model: 8 internal FTE 

  • Hybrid model: 

  • 6.5 internal FTE 

  • 1.0 external FTE as steady baseline 

  • external capacity flexed with demand 


Demand scenarios 

  • Slow quarter: 5.5 FTE 

  • Steady quarter: 7.5 FTE 

  • Demand spike: 9.5 FTE 


Scenario 

Model 

Internal FTE used 

External FTE used 

Total FTE delivered 

Revenue (€) 

Total cost (€) 

Gross margin (€) 

Slow quarter 

Internal-only 

5.5 (of 8) 

5.5 

495,000 

160,000 

335,000 

 

Hybrid 

5.5 (of 6.5) 

5.5 

495,000 

130,000 

365,000 

Steady quarter 

Internal-only 

7.5 (of 8) 

7.5 

675,000 

160,000 

515,000 

 

Hybrid 

6.5 

1.0 

7.5 

675,000 

154,000 

521,000 

Demand spike 

Internal-only 

7.5 (cap) 

7.5 

675,000 

160,000 

515,000 

 

Hybrid 

6.5 

3.0 

9.5 

855,000 

322,000 

533,000 



What I want partners to take away 

  • In slow quarters, hybrid models protect margin 

  • In steady quarters, economics are comparable 

  • In spikes, hybrid models unlock revenue without burnout 

  • The real benefit shows up across multiple quarters, not one 

  • Contractors work best when they are part of the system 


That’s why, for many of the partners I work with, contractors are no longer a last

-resort fix. They are a standard part of how profitable delivery actually works




About author

Štěpán Zechovský


I deliver Anaplan projects across EMEA and have led numerous complex implementations as a Solution Architect, Project Manager, and Engagement Partner.

My work is guided by clarity, trustworthiness, and speed helping clients and partners achieve maximum ROI through fast, reliable delivery backed by deep hands-on experience.




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