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FTE (Full-Time Equivalent)

Definition

A standardized unit representing one full-time worker's hours, used as the billing and staffing unit in most BPO service contracts.

Business Importance

Most flat-rate BPO pricing models are quoted per FTE per month, making it the baseline unit clients use to plan headcount and cost against expected volume.

Industry Examples

A client staffing 10 FTEs across two shifts to cover 16 hours of daily chat and voice support.

Related Terms

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