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Topics: Cost Management, Organizational Project Management
What are the right metrics to measure cost of delivery for Project Profitability in IT/Software projects?

I want to find out the right metrics to measure cost of delivery in a IT/Software Project. The idea is to monitor Cost of delivery to improve Project profitability. The 2 common metrics like Cost per FTE and Cost per Function point are not giving me a direct measure to link cost with Margins/Profitability.

Can a metrics like "Cost per Revenue Earned" be a good measure..?

Has anyone done any work on measuring cost of delivery through cost per revenue earned metrics? Some pointers or guidance on the topic would be helpful.
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Hi Nilanjan, I am not sure my suggestion is right.
use EVM(pv,ev,ac) to monitor the MH cost of the project ongoing.
and one MH's standard cost of labor multiple the AC can get the total cost.
and the EV multiple the salingprice can get the Profitablity.
EVM can be shown by a trend chart or the other form.maybe the matrix.

Nilanjan -

Why not look at it from a cost per feature perspective. After all, customers aren't interested in paying for function points or for the team, they want value...


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