Abstract

Software service organizations (SSOs) execute Information Technology (IT) projects and provide skilled human resources to client organizations. For a given IT project, a SSO may be required to provide their clients with IT professionals having a specific combination of software and/or hardware and/or managerial skills and with a specific level of expertise in each of those skills. However the actual number of people who meet all the required conditions for an IT project would be small. SSOs aim to achieve a balance between high growth and high utilization; the former requires keeping a pool of available resources to be deployed at growth opportunities. However if this pool becomes too large, utilization suffers, lowering profitability. Thus, the key to IT project execution lies in human resource optimization— putting together the optimal mix of human resources at the correct location at the correct time at the correct price. However, SSOs have not been very successful in this regard, with low utilization ratios being common in the industry. The objective of this study is to provide an optimal human resource management model that maximizes profitability by taking into account factors peculiar to SSOs.

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