Cost Analysis in the Transition of Projects to Remote Work During the COVID-19 Pandemic

Abstract

Theoretical Benchmark: The COVID-19 pandemic forced businesses to undergo unprecedented transformations. Projects emerged as key drivers of change, necessitating clear intentions and resource organization. Amid economic challenges, companies globally pivoted to remote work, leading to cost analysis implications. Delays and cost overruns persisted in project management, with factors like inadequate forecasting and unforeseen risks contributing. The study aimed to evaluate the expenses of three consulting projects transitioning from in-person to remote work due to the pandemic's impact. Method: This study employs an exploratory case study methodology to examine the transformations undertaken by a private entity offering educational and technology services in response to the COVID-19 pandemic. The focus is on the technology and innovation sector, where services include metrology, technical services, product development, and consulting. Cost analysis is conducted, comparing in-person and remote project execution, with a fixed-price contract model, and profit margins are evaluated for each project mode. Results and Conclusion: Adapting projects to remote work during the pandemic reduced costs and increased profit margins, with Project A achieving a 4.9% profit margin due to savings. Projects B and C saw significant cost reductions of 17% and 31%, respectively, when executed remotely, leading to higher profit margins. The study underscores the potential for remote consulting projects as a viable business opportunity and suggests further research into their impact on customer satisfaction and pricing competitiveness. Research Implications: The study's findings recommend that consulting firms should adopt standardized cost estimation procedures and implement project-specific cost monitoring. These implications offer practical guidance to consulting firms aiming to excel in demanding situations and streamline their operations effectively. Originality/Value: This research explores how consulting firms can thrive during crises like COVID-19 by adopting remote work, which reduces costs and increases profitability. It suggests, as a topic for future research, a more detailed analysis of the correlation between project execution in-person and remotely, and how this directly affects the satisfaction and performance of client companies.