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IT Business – a management perspective

Agenda: This blog is an attempt to see an SAP IT Service from a service provider’s perspective. There are so many blogs detailing and  sharing their experience from a consultants stand point. Let me try a to see from a different angle

We say we are in projects like implementation, enhancement, roll out   , support, product development etc.

Do we know how an IT Service provider treats this?

Basic awareness on IT Business

SAP IT Business Process

  • Pipe line analysis

Before we receive a project, there will be an inquiry and it will have a probability. The 100 % probability means the projects means the client have awarded us the project.

  • Project delivery:

Once a Company gets the project from a client .People will be allocated to the work and do the delivery. (Assumption: project plan and all are in place)

  • Revenue recognition and Billing:

Revenue will be recognized every month and Billing to the client will be made as mentioned in the SOW /MSA/LOI etc.

  • Cash collection (ref. Day sales Outstanding – DSO):

How many day a company’s billing converted to cash

  • Project closure:

Project is officially closed or the validity of the contract ends.

  • CR or extension:

New project will be initiated with a new start date and end date . It may also incorporate rate change/ role change , working period etc.

The below all the legal agreement which allows us a vendor to engage work with a client.

MSA: Master Service level Agreement

SOW: Statement of work

LOI: Letter of indent

PO: purchase order

Please note: I have given things in high level detail only. You can google to see details if you want to know more.

Please let me know if you have any question .

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