Cost is considered as the value of funds that have been taken into account to produce something. In an organization, it is important to maintain proper balance among the cash flows so that it would not affect the overall growth of the business. Henceforth, it is essential to manage costs by identifying as well as reducing business expenditure to attain a sufficient amount of profit during the time (Schwalbe, 2015). Further, a cost management system can be used to deal with the cost incurred by an organization like Info Track Pvt Ltd. It is the process of planning and controlling the budget of a business so that future goals can be accomplished in an effective and efficient manner. This project report focuses on the impacts of cost management in the IT sector. Moreover, the use of relevant methodology is also been discussed that could help in resolving cost-related problems along with key project software that is held responsible for managing costs that arise during communication processes are also examined in this research.
"To determine the influence of cost management Information Technology industry. A case study on Info Track Pvt Ltd".
In every research project, it is essential to make use of specific methods that could assist in properly managing all kinds of operation. A project management methodology is a crucial set of guiding principles and steps for evaluating project performance. Cost management consists of certain strategies that generally useful for a project to get maximum chances of the reliable outcome so that productivity of Info Track Pvt ltd can be attained. It has been examined that in accordance to enhance the performance of the IT industry they need to make use of correct methods so that additional cost could easily be managed within a business. It included different cost control methods that focused on correcting the work process and maintain the long-term profitability of Info Track Pvt ltd (Marchewka, 2016). Being a researcher, it is valuable aspects to apply appropriate methods while collecting or analyzing gather data so those accurate outcomes can be generated during the time. It has been further categories into various processes such as identity, collect and evaluate information those research by the manager and apply those into the right ways so the cost-effective decision could be made for an organization. For Info Track Pvt ltd management, they need to look for all those costing methods that can provide them maximum option to control their additional expenses at the time of production process of delivering any kind of services to its customers. However, it has been seen that the IT industry is getting more digital nowadays, hence companies are investing a maximum amount in producing a more advanced system that can make it easy for clients to manage their operations on regular basis. Henceforth, Info Track Pvt ltd needs to make use of certain methods through which the entire cost of the business could be controlled and maintained within its required limits. The cost estimation method is an important method by which the company can predict its future business plans within a set target regarding its total costs (Seymour and Hussein, 2014). There are end numbers of methods through which cost can be estimated such as factor, parametric and detailed estimation. Another important method is cost budgeting that consists of fixed budget data; managing actual cost and estimation of extra costs are easily analyzed. With the help of this methodology, an overall idea about future expenses and costs can be predicted accurately so that early measures can be done to manage costs. A well-organized project assists in facilitating reliable management of the costs, making project profitable for an organization. Through effective cost management, unexpected costs could also be dealt and an appropriate decision can be made to overcome its impacts on the performance of an organization.
Moreover, it tends to be a more accountable method that leads to effective cost decisions. It increases the proper understanding of expenditure and makes non-activities more visible. These are helpful to maintain a profitable IT industry in front of other competitors within the market. For info Track Pvt ltd, cost plays an eminent role in maintaining a regular business of its products and services in the market. Hence, they need to keep applying relevant methods that can provide maximum chances of growth and sustainability for the business. Overall, it is crucial to control the costs of raw material and prices of its products or services so that long-term growth potential in the IT industry could easily be maintained for an organization.
Before any specific project is taken into account, it is important to determine the objective to deal with cost over-runs. The innovation in technology would assist in getting a better quality of superior standards, minimum time consumption with high productivity within a desired range of limitations. It has been examined that the business is using reliable cost management software to maintain the accuracy of a project (Bryde, Broquetas and Volm, 2013). These types of software generally deliver businesses to manage the cost of providing different types of project costs that can enhance profit for Info Track Pvt Ltd. It could be valuable for project managers to look for its cost those are incurred on a project. There is certain effective software that could assist management to examine the proper exchange of information as well as taking cost-efficient decisions. Some of them are:
In respect to get more profitable results from a project, it is important to make use of effective cost management methods or software. It will assist an organization to decide to attain the goals of the business. However, it ensures that a project completed as per the decided timeframe so that extra costs can be controlled. It is analyzed that the cost of any project cannot be measured without having defining success. It will need a proper focus on results that are incurred during the end of the project. The management need to work on set baseline for actual cost require at the time or production process (Lee and Yu, 2012). Without effective cost management, companies would lose money, clients and another important person that happens to be valuable aspects for an organization. Cost management is an essential practice that is useful for the managers to examine and reduce business expenditure to enhance profits and it begins with the budgeting process. Info Track Pvt Ltd needs to compare actual results with its budgeted expectation and in case actual is higher than budgeted, management needs to take action to overcome its impacts on the performance of the company.
From the above project research, it has been concluded that cost is a valuable aspect of an organization. It helps in increasing the productivity of a company and also gains competitive benefits from other competitors. However, the manager needs to control excess costs by adopting correct techniques or software so that the maximum chances of getting growth can be generated soon. Henceforth, project management looks to use accurate software to control its projects and make a decision to manage unexpected or additional costs for an organization.