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A System & Method to Price Resources for IT Services Contract on True Value of Employees Disclosure Number: IPCOM000243843D
Publication Date: 2015-Oct-20
Document File: 4 page(s) / 74K

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The Prior Art Database


Disclosed is a system that determines how to price resources for IT Services Contract by using the true value of an employee - a function of several historical and current employee attributes, and not just the compensation attribute.

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A System & Method to Price Resources for IT Services Contract on True Value of Employees

In today's knowledge based economy, the employees are probably the most important asset.While it is easier to assign a value to machines, equipments, inventory and other physical goods, it is a non-trivial task to assign corresponding value to an employee.Typically, organizations use the compensation as a proxy to value of employee when generating a services costing contract. However that may not be a true indicator as compensation brands all similar-paid employees together (in other words, all employees with similar pay level and similar skills are clubbed together), whereas the fact is that they are not all equal. Moreover, the growth of compensation for an individual many a times depends on market condition, criticality of the employee for an project and other such factors. Disclosed here is a technique to incorporate other dimensions of an employee such as professional and social network, projects & related work experience, technical and business skills, roles etc. in computing the value of each employee, so that multiple IT Services contracts can be generated for pricing, leading to multiple project plans. A project plan takes a pricing plan as an input (specifically the skills of the people considered in the pricing plan) and along with technical contract requirements, estimates the time-to-delivery or time-to-completion.

Fig. 1 below depicts the system architecture. At the left are the various enterprise as well as 3rd party data sources, which contain potentially many of the historical and current attributes needed to determine a value for each employee. The core of the system is a Resource Valuation module which requires one more input - the Contract description, that includes resource requirements like headcount, desired skills/technologies, experience level, budget etc. The output consists of various pricing plans, each in turn leading to a different project plan. This is contrary to existing compensation-based valuation methodologies where the output is a single pricing plan that is further refined based on negotiations, cost optimization, revenue & profit optimization etc.


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Figure 1: System Architecture

Fig. 2 depicts a detailed flowchart of the solution, specifically of the Resource Valuation module. It first queries the various data sources to match all resources that fit the given criteria (contract description). It then computes a price/value for each resource using the weighted historical and current dimensions. It th...