Sachin,

Long term projects create an interesting challenge. Our clients expect discounts for long term projects, but our costs go up every year.

As usual, I can’t share our metrics, but I suggest you look at your business development costs, which should be lower for long term
engagements, but include any staff increments that will occur during the duration of the project. We also factor things in like staff
chargeability, which is higher for long term projects, so we factor out bench time, resulting in a reduced cost.

As for overtime, we have a variety of ways we handle it. The easiest is to simply charge flat rates for overtime, but be sure the client understands
if they are going to be billed over 40 hours in a week. Of course, the staff has to agree to the overtime. I don’t know if you pay overtime, but
that is independent of whether you charge your customer. Our staff travels extensively, so we negotiate things like a 4 day 40 hour week. When
overtime is required, we encourage our staff to work at least part of their day on Friday, preferable from their home office.

Hope this helps.,

Joe G.