COSTING MODELS AND EFFECTIVENESS IN SERVICE INDUSTRIES AT TECH MAHINDRA

Abstract

This Research looks into the effectiveness and application of costing models in the service sector, with a focus on Tech Mahindra, a well-known provider of IT services. Costing models are critical in service-oriented businesses because they enable strategic decision-making by monitoring, managing, and optimizing operational costs. This investigation assesses the degree to which Tech Mahindra's costing practices are consistent with its organizational goals, resource allocation, and profit analysis. It accomplishes this by examining a variety of methodologies, including activity-based costing (ABC), job costing, and service-level costs. The Research emphasizes the effectiveness of these models in improving pricing strategies, cost transparency, and operational efficiency. The findings highlight the importance of implementing tailored costing strategies in complex service environments in order to achieve long-term financial success and a competitive edge.