Few days back I was attending a demonstration of a productivity management tool made by a company in Pune. Although there was no right away model to tell exact productivity, it was still very revealing and startling to get some facts.
The fact is that filling up time sheets alone does not mean that the IT resource has been productive for that number of hours. However, it is binding that the money is paid on the time logged by the customer.
“ Although there is no one method of improving productivity, the most important step starts with high level of engagement generated by the management at all levels. “
While every company pays for 8 hours per day for a contract resource or even charges their own customers for 8 hours per day on an hourly basis, the reality is that the real work being done on an average still remains below 50% of the time.
The person showing the demonstration was candid enough to tell that in most of the companies where the tool have been implemented only 20% of the staff are productive enough as per they are charged. While about 60% are only 50% productive on an average, 20% of the staff is hardly productive with only less than hour a day of real work.
Just imagine if the customers globally end up having a tool like this to measure the real productivity and start paying based on the real productivity, it is easy to guess that the cost of the work would be less than 50% of what it is being charged now.
It is imperative that if IT companies can work to improve their productivity by just 20% more, they will probably save and be more effective than what they would by doing everything else. Although there is no one method of improving productivity, the most important step starts with high level of engagement generated by the management at all levels.
It is high time to look at this aspect which is far better than potential job losses when market becomes even tighter in coming times.
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