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Managing Service Companies Using IT

The manual system of management was for a very long time in use in the management of companies. This was before the existence of technology and technology based platforms. The manual system occasioned inefficiency and slow growth of companies financially. This however changed after information technology was discovered and started being employed in the running of companies.

There are two broad groups of companies in the world. The first category comprises of companies that trade in solid goods. Goods such as cars and other industrial items are the main trading commodities for such companies. The second category consists of companies that are service related. The main item of trade for such companies is service.

The management of service companies is slightly different to that of companies that deal with tangible goods. The difference is more visible when it comes to employing information technology within the management structures. To understand this difference, let us understand the running of a service company such as an audit firm.

Audit firms carry out the service of auditing for their clients. Since auditing does not involve transfer of goods, the technology based system used to manage it is only responsible for tracking the flow of services as required by the client. Information Technology mainly works by the use of software. The type of work being done by a company determines the type of software to be employed.

IT managed service companies usually use software that allow for different operations on a technology based platform. Data storage is one among the key functions carried out by computer software for service industry. Service information can only be stored using data on an appropriate platform. This is not the case for companies dealing with tangible goods since sometimes the goods could serve as records of transactions.

Networking is the other key feature of software used in running service companies the world over. When in the service industry, it is important to have a system that keeps track of different steps of transactions. For instance, an audit firm would naturally be divided into departments that handle the different levels of auditing. One department could start with financial analysis of the balance sheet of the client. This could be followed with analysis of taxation and remuneration matters. Lastly, the process would end with final general auditing.

All the steps to be followed in ensuring flawless running of the different steps of a service company can be well managed using software. The software serves to ensure that efficiency is at its highest level. Research has it that management of service companies using Information Technology platforms actually translate to a 50% increase in efficiency. With efficiency it is clear that the company would definitely end up performing better either immediately or in subsequent financial years.