INFORMATION TECHNOLOGY SERVICES SCALE OF
Description: INFORMATION TECHNOLOGY SERVICES SCALE OF PROFESSIONAL CHARGES PRESENTED BY: ABIMBOLA SALAKO, Ph.D., FNCS, C.itp BACKGROUND AND HISTORY OlayinkaAghanenu June 2008 Uwaje May 2009 RRC Comm. Mar. 2010 Members Input Aug. 2010 Council
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slide1. INFORMATION TECHNOLOGY SERVICES SCALE OF PROFESSIONAL CHARGES PRESENTED BY: ABIMBOLA SALAKO, Ph.D., FNCS, C.itp<br>
slide2. BACKGROUND AND HISTORY Olayinka/Aghanenu – June 2008
Uwaje – May 2009
RR&C Comm. – Mar. 2010
Members Input – Aug. 2010
Council Final Approval – Mar. 2011<br>
slide3. NEED FOR SCALE OF CHARGES To aid in the regulation and control of IT practice
To promote growth in IT practice
To provide a uniform standard in conformity with those established by other professional bodies
To provide benchmark for project cost estimation and project planning
To safeguard the financial interest of both IT practicianers and their clients
To provide a standard for dispute resolution<br>
slide4. Scope of Coverage All consulting services in IT
Corporate Organizations
Individual Consultants
Long and Short-term Projects
Exclusions:
Purchase or Lease of project materials
Consultant’s Reimbursable Expenses<br>
slide5. KEY AREAS OF IT CONSULTING SERVICES<br>
slide6. Consulting Services Contd.<br>
slide7. Scale of Professional Fees Rate or Percentage-Based Charges
Consultant as Lead Consultant
Consultant as participating Consultant
Time or Duration-Based Charges<br>
slide8. Information Technology and System Consultant Categories<br>
slide9. Proposed level of Professional Managers for IT and Systems Projects<br>
slide10. Professional Charges for consultant as Prime Consultant<br>
slide11. SCALE OF FEES FOR OTHER PARTICIPATING CONSULTANT (I.E. EXCLUDING PROJECT MANAGEMENT)<br>
slide12. FEE DISTRIBUTION TO CONSULTANTS<br>
slide13. Contd.<br>
slide14. FEE DISTRIBUTION TO CONSULTANTS<br>
slide15. CATEGORIES OF CONSULTANTS<br>
slide16. Category A – Principal Consultants A top practitioner whose expertise is nationally or internationally recognized and who provides advice at a level of specialization where such advice is recognized as that of an expert.<br>
slide17. Category B - Lead/Senior Consultant A partner, sole proprietor, director, or member of a private consulting practice, who takes full responsibility for the liabilities of such practice, performs work of a conceptual nature in Information Technology System design and development, provides strategic guidance in planning and executing a project and/or carries responsibility for quality management pertaining to a project.<br>
slide18. Category C - Consultant/Associate All professional staff of a private consulting practice performing work of an Information Technology System nature and who carry the direct technical responsibility for one or more specific activities related to a project. A person referred to in Category A or B may also fall in this category if such person performs work of an Information Technology and Information System nature at this level.<br>
slide19. Category D – Technologist/Tech. Officer All other technical staff of a private consulting practice performing work of an Information Technology System nature under the direction and control of any person contemplated in Categories A, B or C<br>
slide20. Parameters Affecting Man-Month Rates (ACEN)<br>
slide21. Working Hours 8 Hours in a day
20 Days in a month
10 Months in a year<br>
slide22. Basic Salary Costs<br>
slide23. Social Costs<br>
slide24. Social Costs Contd.<br>
slide25. Company Overhead Costs<br>
slide26. Company Overhead Costs Contd.<br>
slide27. Company Overhead Costs Contd.<br>
slide28. Company Overhead Costs Contd.<br>
slide29. Fee Component Costs Contingencies
Interest on Capital
Responsibility
Profit<br>
slide30. Calculation Of Time Based Fees (ECSA) Total Cost of Employment of the person
Available working hours
A factor to make allowance for overhead costs
An utilization or productivity factor to distinguish between chargeable, and non-chargeable time
An allowance for profit<br>
slide31. Calculation of working Hours per Year<br>
slide32. Working Hours Contd.<br>
slide33. Calculation of Overhead Factor (Exclusive of Profit)<br>
slide34. Overhead Factor Contd.<br>
slide35. UTILIZATION FACTOR<br>
slide36. Composite Factor Composite Factor =
(Overhead Factor * Time worked
* Mark-Up)
/
(Utilization Rate)<br>
slide37. Long Term Hourly Fees Based on Public Sector Consolidated Salary 2010<br>
slide38. Short Term Hourly Fees Based on Public Sector Consolidated Salary 2010<br>
slide39. Factors for Revision of Scale Socio – Economic Changes
Cost of Living
Government Regulations<br>
slide40. References<br>
slide41. References Contd.<br>
slide42. Web Search<br>
slide43. END Thank You.
Abimbola Salako, Ph.D., FNCS, C.itp<br>
slide2. BACKGROUND AND HISTORY Olayinka/Aghanenu – June 2008
Uwaje – May 2009
RR&C Comm. – Mar. 2010
Members Input – Aug. 2010
Council Final Approval – Mar. 2011<br>
slide3. NEED FOR SCALE OF CHARGES To aid in the regulation and control of IT practice
To promote growth in IT practice
To provide a uniform standard in conformity with those established by other professional bodies
To provide benchmark for project cost estimation and project planning
To safeguard the financial interest of both IT practicianers and their clients
To provide a standard for dispute resolution<br>
slide4. Scope of Coverage All consulting services in IT
Corporate Organizations
Individual Consultants
Long and Short-term Projects
Exclusions:
Purchase or Lease of project materials
Consultant’s Reimbursable Expenses<br>
slide5. KEY AREAS OF IT CONSULTING SERVICES<br>
slide6. Consulting Services Contd.<br>
slide7. Scale of Professional Fees Rate or Percentage-Based Charges
Consultant as Lead Consultant
Consultant as participating Consultant
Time or Duration-Based Charges<br>
slide8. Information Technology and System Consultant Categories<br>
slide9. Proposed level of Professional Managers for IT and Systems Projects<br>
slide10. Professional Charges for consultant as Prime Consultant<br>
slide11. SCALE OF FEES FOR OTHER PARTICIPATING CONSULTANT (I.E. EXCLUDING PROJECT MANAGEMENT)<br>
slide12. FEE DISTRIBUTION TO CONSULTANTS<br>
slide13. Contd.<br>
slide14. FEE DISTRIBUTION TO CONSULTANTS<br>
slide15. CATEGORIES OF CONSULTANTS<br>
slide16. Category A – Principal Consultants A top practitioner whose expertise is nationally or internationally recognized and who provides advice at a level of specialization where such advice is recognized as that of an expert.<br>
slide17. Category B - Lead/Senior Consultant A partner, sole proprietor, director, or member of a private consulting practice, who takes full responsibility for the liabilities of such practice, performs work of a conceptual nature in Information Technology System design and development, provides strategic guidance in planning and executing a project and/or carries responsibility for quality management pertaining to a project.<br>
slide18. Category C - Consultant/Associate All professional staff of a private consulting practice performing work of an Information Technology System nature and who carry the direct technical responsibility for one or more specific activities related to a project. A person referred to in Category A or B may also fall in this category if such person performs work of an Information Technology and Information System nature at this level.<br>
slide19. Category D – Technologist/Tech. Officer All other technical staff of a private consulting practice performing work of an Information Technology System nature under the direction and control of any person contemplated in Categories A, B or C<br>
slide20. Parameters Affecting Man-Month Rates (ACEN)<br>
slide21. Working Hours 8 Hours in a day
20 Days in a month
10 Months in a year<br>
slide22. Basic Salary Costs<br>
slide23. Social Costs<br>
slide24. Social Costs Contd.<br>
slide25. Company Overhead Costs<br>
slide26. Company Overhead Costs Contd.<br>
slide27. Company Overhead Costs Contd.<br>
slide28. Company Overhead Costs Contd.<br>
slide29. Fee Component Costs Contingencies
Interest on Capital
Responsibility
Profit<br>
slide30. Calculation Of Time Based Fees (ECSA) Total Cost of Employment of the person
Available working hours
A factor to make allowance for overhead costs
An utilization or productivity factor to distinguish between chargeable, and non-chargeable time
An allowance for profit<br>
slide31. Calculation of working Hours per Year<br>
slide32. Working Hours Contd.<br>
slide33. Calculation of Overhead Factor (Exclusive of Profit)<br>
slide34. Overhead Factor Contd.<br>
slide35. UTILIZATION FACTOR<br>
slide36. Composite Factor Composite Factor =
(Overhead Factor * Time worked
* Mark-Up)
/
(Utilization Rate)<br>
slide37. Long Term Hourly Fees Based on Public Sector Consolidated Salary 2010<br>
slide38. Short Term Hourly Fees Based on Public Sector Consolidated Salary 2010<br>
slide39. Factors for Revision of Scale Socio – Economic Changes
Cost of Living
Government Regulations<br>
slide40. References<br>
slide41. References Contd.<br>
slide42. Web Search<br>
slide43. END Thank You.
Abimbola Salako, Ph.D., FNCS, C.itp<br>