A Theoretical Study on Improvement of Public Delivery System According to IT Service Cost Estimation

Abstract

Forecasting ordering size and performance cost correctly in the ordering of IT service projects and the initial stage of performance is a very important factor not only to the ordering body but also the company who performs the project. Middle standing IT service companies receive/perform public IT service project, substituting large companies, after 2013 amendment of Software Industry Promotion Act. However, the business competence accumulated by middle standing IT service companies is relatively insufficient in project management ability compared with large companies, and the style that project companies bear all risks of the project, such as Turn-key order in the market focused on large companies in the past, has great risk to the ordering body, project company, and service beneficiaries in quality, costs, profit and delivery date. Currently, the market centered on middle standing IT service companies deteriorates the profitability of interested parties, which makes IT service ecosystem as an element of cost increase due to reduction of ordering size, low earnings yield, and increase of management expenses. Therefore, there is necessity that the cost calculation and order style structure for IT services, in which project companies should bear all the risk of project performance, should be improved. This treatise is going to analyze the IT service market ecosystem and agreement, project performance style upon current IT service project cost calculation method based on SW lifespan process and suggest improvement methods.