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InfoTech Corporation

InfoTech Corporation is a business solutions company with 10 system designers, 30 software coders, 5 testers, 2 technical writers, and 15 managers. It provides customized software to clients. The company pays system designers Rs. 45,000 per month and coders Rs. 20,000 per month. It offers standard leave policies and 40-hour work weeks. Before 2001, InfoTech priced projects at 450% overhead on direct costs but now uses job-based bidding with profit margins. For the Sundaram Computers project, InfoTech estimated man-hours by category at current salary rates plus 20% overtime. It allocated overhead expenses based on its 2002 budget and added a 30% markup on project costs to quote Sundaram Rs

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Somdipta Maity
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164 views11 pages

InfoTech Corporation

InfoTech Corporation is a business solutions company with 10 system designers, 30 software coders, 5 testers, 2 technical writers, and 15 managers. It provides customized software to clients. The company pays system designers Rs. 45,000 per month and coders Rs. 20,000 per month. It offers standard leave policies and 40-hour work weeks. Before 2001, InfoTech priced projects at 450% overhead on direct costs but now uses job-based bidding with profit margins. For the Sundaram Computers project, InfoTech estimated man-hours by category at current salary rates plus 20% overtime. It allocated overhead expenses based on its 2002 budget and added a 30% markup on project costs to quote Sundaram Rs

Uploaded by

Somdipta Maity
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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InfoTech Corporation

Presentation flow
About the company Functional Structure & resource Company Policies Bidding policy & cost Structure

About The Company


InfoTech corporation (InfoTech) specialize business solutions to the customers. Commercially available software to the clients' special need according to the need of customer.

Functional Structure & resource


System design

Ten system designer Thirty software coding Five testers Two Technical writers Fifteen ,supervisory management & support function

Code writing

Testing

Technical Writeups

Management & suppport function

Company policies
Average Salary of employees System designer Rs. 45000/months Coding department Rs. 20000/months Technical writers Rs. 250000/months Over time @ 50% over regular rates of working hours

Leave Policy
Two weeks paid vacation Sick leave 7 days , Casual Leave 7 days Saturday Sunday week offs

Per week working Hours


Per employee working hour -40 work hours /weeks

Bidding Policy & Cost Structure


Before 2001, dollar Economy pricing & proving 450% overheads on its direct cost After 2001,developed a reliable costing system based on job based bid and profit margin

Sundaram Computers Project


Database development outsourcing proposal to InfoTech Cost estimation -

Key points of proposal to proposal to Sundaram Computers


Estimate of category wise man hours prepared by the project cell and the man hour rate worked for each category from our current salary scale Provision of 20% overtime work taking into account the required delivery and our current work load The allocation of overhead expenses based on our budget for 2002 A markup cost of 30% on our project costs A quote of 18.5 lacs for the project

Issues
Develop the cost of project for sundaram computers based on the available data. Should InfoTech accept the sundarams counter offer?

Develop the cost of project for sundaram computers based on the available data

Should InfoTech accept the sundarams counter offer ?

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