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How to reduce Project Cost & increase ROI of Your department

Cost is one of the contributing factors in measuring the success of the project. It has been generally seen, those project managers who provide projects delivery on time and under budget will remain in high demand. It's true that at the starting of a project, cost is variable and duration is fixed, but after budget approval, cost becomes fixed and priority. One should have multiple strategies about how to reduce project cost, as sometimes issues in the software and problems during delivery leads to project failure, which creates the revenue loss for an organization. There is an old saying, “prevention is always better than cure”. Here, I am suggesting a few ways to reduce the project cost.

Utilize in house expertise effectively

How to utilize the team in a productive manner? It is also one of the most important tasks of the project manager. As the project comes with a number of phases and there are a number of inputs required from the different individuals. So, it is mandatory to organize or build the team in such a manner that helps to deliver the projects without any delay. Also project manager should have a backup plan, if in case any employee plans to take a leave. Proper backup plan helps to complete the project by due date.

Look for less costly alternatives

Project management includes the ways how project managers can go for less costly alternatives without spoiling the objectives and timelines of the project. Can some work be done from home rather than visiting office? Can you use the existing hardware, rather than buying the new machines? Can training be provided inside the campus, rather than sending them to the off-site classes and labs? These steps are really helpful to reduce the costs while delivering which has been planned.
Return on Investment (ROI) is a ratio of company’s net profit compared to financial investment in the business. It depend upon you, what kind of return you are looking for, based on that there are different ways to improve your Return on Investment (ROI). Returns generally include increased profits, reduced expenses and increased brand awareness. ROI is not the same as the profit you get from selling goods and services, but it is the financial return you receive by spending money. If you are having a small business, increasing your ROI, totally depends on your ability to manage finances and assets of the company. Here, I am throwing light on some steps that might help you in increasing ROI.

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Examine Company Costs

A detailed financial analysis of where your company spends its money is helpful in developing a strategy to increase ROI. In order to complete this task, you require the financial number for company's annual operating budget and total revenue for the same period of time. Devoting extra time and money to train the employees in underperforming departments can increase efficiency as well as performance. This boosts the profitability of a business as a whole because other departments are already performing well.

Focus on the internet

It is the time of internet, with the help of this we can virtually reach anywhere at any-time. The internet helps businesses to communicate with millions of customers and clients through a retail and social networking website. Market research done by various organizations shows that spending cash to develop a social networking presence holds customer attention and helps the business to increase ROI. With the proper use of Search Engine Optimization (SEO), you can reach to the right kind of customers who are looking for purchasing your products as well as services.