Cost Control for IT projects and portfolios

Our belief is that cost control starts with early involvement, understanding what (business) stakeholders really value and what would be their definition of project success. We will support stakeholders as a sparring partner in identifying the contours of the challenge(s), highlighting (im)possibilities, interdependencies, opportunities and risks. All our assignments are governed by our Exceed method (EXceeding Customer Expectations by Excellent Delivery). This phase would typically end with a SMART definition of the project scope.

After the scope has been defined an initial cost assessment will follow. This is a high level indication of expected spend, leading to an agreed budget for the project. This would normally be the basis for a business case to be approved on a portfolio/program board level.

As part of the initiation of a project, a risk assessment will be performed with appropriate delegation of all stakeholders. Risks are identified and classified (probability, impact) after which appropriate measures are defined to mitigate or at least reduce risks. A contingency budget is calculated to deal with remaining risks. This will lead to a conceptual cost calculation containing more detail for relevant cost categories like staff, infrastructure, development, licenses, training & education, project control and contingency costs.

Our market knowledge is used to identify potential strategies to source the defined project scope, also taking into account the enterprise, information and application architecture (when in place). We will define (options for) a sourcing strategy and support the organization in choosing the most suitable strategy. Our procurement professionals can support in defining your demand into a request for proposal or (European) tender. Read more about our broad experience in this field. Our cost control professionals are involved to assess bids from both internal and external suppliers. 

For both inhouse IT-departments and outsourced services we will support the project management team to calculate a definite budget based on the full project plan. Thus we provide the portfolio and project boards as well as project management with a sound basis to start-off the project and turn it into a success. 

Introducing appropriate and consistent cost calculation and into you organization will help:

• Management in solid decision making and prioritization: adequate cost calculaton and a structured cost management file supports the right decisions and allows (project) management to reconsider when necessary;
• Project management in solid cost and project control and optimization during project execution;
• Project teams in limiting, avoiding and mitigating project risks and proactively identifying new risks arising;
• Management to act appropriately on their accountability to all stakeholders in and around the project.

In summary, cost calculation and control are a key asset to any organization acting in a changing environment. Please contact us if you have any further questions!