Study on the restraint factors in selecting methods of IT project valuation

Abstract

It is a scientific study to select the method of IT project valuation. Adopting scientific method of valuation contributes a more accurate IT project price, which can not only provide the basis for the financial evaluation, economic and risk analysis of the IT projects, but also provide the benchmark to implement expense (investment and cost) control effectively in the process of IT project construction, and ensure the target of IT project costs. This paper analyses two factors in selecting method of IT project valuation. They are the constraint factors of amount of valuation information in different stages of IT project and the constraint factors of the value constitution of IT project. In connection with the features of all stages of full life-cycle of IT project and different types of project, this paper elaborates separately the corresponding requests of IT project valuation as well as the principles of valuation method selection reasonably. Besides, this paper emphasizes that the human resources constitutes an important part of the value and price of IT project, thus IT project valuation should attach an importance to the evaluation of human resources as well as the selection of the corresponding method of valuation.