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Blog | 08.22.2012

Measuring the Profitability of Outcome Based Projects

Due to the Global financial crisis, majority of businesses are facing a slowdown and the IT budgets are getting tightened. In the current situation Customers are now looking for more value for each rupee spent, and the traditional models of Time & Material or Input based pricing are becoming a thing of the past.

Most of the clients have started demanding for Outcome based models where they intend to pay only for what they receive in form of services such as defects fixed, test cases completed, support incidents addressed, impact on sales, improvement in bottom-line etc. This has brought the productivity of the vendor’s employees into center stage, which propels them to work towards giving the buyer the best price with an optimal delivery quality.

Now in executing the Outcome based projects it becomes challenging for the Service provider’s top management to ascertain measurable outcomes because of the lack of work visibility amongst the employees. As a result it becomes difficult to measure the exact impact of Employee Productivity on the outcome. These factors if left ignored ultimately hit the revenues the service provider is expecting to earn.

Our product Sapience plays a key role in such circumstances. It’s a “Smart Effort Analytics” tool, which provides detailed insights about the working patterns of the employees.

It captures the time spent by each employee on a particular business activity to ensure that majority of the time is spent on top 3-4 activities, this allows the Managers to set performance goals for the employees so that they can help in achieving the desired outcome.

At the Team level, Sapience provides Lead Indicators for the under-utilized and the over-utilised teams. The data allows performing a root cause analysis, and reaching out to the immediate issues affecting the productivity of the team. It helps in right sizing the teams, which can help in gaining revenue gain of 10-15% if same team is made to deliver more, or even a higher profitability of 35-50% if team size is reduced.

Henceforth Sapience helps in making the outcome more process oriented, setting performance goals for the entire workforce and drafting well-defined and measureable service levels for current & future projects.

One of our esteemed clients reflects the benefits they are getting after deploying Sapience:

“Sapience empowers the company at two levels, from an organization standpoint it allows us to measure and improve employee productivity while enabling individuals to improve their productive output and time management through self-analysis. It also helps managers guide their team’s activities to desired outcomes. KPIT Cummins will benefit from the software’s approach through analysis of the effort captured.” Vaishali Vaid (AVP &Head of Process Excellence Group, KPIT)

Our uniquely compelling and patent-pending solution has found rapid acceptance at 30+ customers and 15,000+ users in just one year. Try our 30-day trial for up to 100 users. Please contact us at sales@sapienceanalytics.com or https://sapienceanalytics.com/try-sapience