Measuring Profitability at Projects

Background: Client was in the business of ITeS, where employees used to work on single project with Team Leader or Project Manager. Client was unaware of  Client Profitability and recovery of employee costs.

• Contract with customers were signed without considering the Senior Project Manger’s time getting allocated to the Project
• Customer wise/Project wise Profitability was not prepared

Solutions Implemented:

• We designed chart of account to account project wise
• Teams cost were captured at the project level
• Project Managers were asked to provide their time sheet to allocate the cost for each project
• Separate report was prepared for employee profitability, against each employee cost with revenue earned to check which employee cost recoverability is more

 Result:

Within 4 months, clients was in position to know the best contributing Customer and best performing employee