Agenda: This blog is an attempt to see an SAP IT Service from a service provider’s perspective see may blogs from a detailing and sharing their experience from a consultants stand point. Let me try a to see from a different angle.
We all works in a consulting company. Do all know how they do their business?
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?
This blog will have 4 parts
Blog 1: Basic awareness on IT Business
Blog 2: Classification of project based on Service delivery
Blog 3: Classification of project based on mode of execution
Blog 4: Project management
Blog 1: Basic awareness on IT Business
- MSA: Master Service level Agreement
- NDA: Non-Disclosure Agreement
- Project Charter
- SOW: Statement of work
- LOI: Letter of indent
SAP IT Business Process ( SAP IT service provider)
1. 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.
2. 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)
3. 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.
4. Cash collection (ref. Day sales Outstanding – DSO): How many day a company’s billing converted to cash
5. Project closure: Project is officially closed or the validity of the contract ends.
Please note: I have given things at a high level detail . You can Google to see details if you want to know more.
An Account manager/ portfolio manager can explain better . Dont miss a chance when you talk to them .
