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The Benefits of TCO Benchmarking Services
Reduce Costs
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Gain valuable insight into
pinpointing areas for cost reduction or doing more with existing IT budgets.
It has been documented that the annual TCO industry average is well over
$10,000 per each End User of technology. By doing some quick math with the number of
End Users in your organization, it is easy to determine how significant a 5%, 10% or 25%
savings can be to your company. |
| Increase
Productivity
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Determine where your
human resources can increase their productivity.
Direct, or budgeted costs, are typically budgeted by the IS organization.
These include hardware and software capital expenses; the labor cost for the network,
systems and storage management staff; maintenance and support fees; the cost of the help
desk; IS operations and overhead, including labor, travel and training; the development of
infrastructure applications; and communications fees.
Indirect, or unbudgeted costs, often go unaccounted for in
most IS organizations. These include end user self and peer support, casual learning and
productivity losses due to planned and unplanned downtime.
A careful analysis of the direct and indirect expenses can
reveal a harmful imbalance. For instance, cuts in direct expenditures can lead to
unexpected increases in indirect expenses, leaving users supporting themselves, resulting
in losses in overall user productivity. |
| Mitigate
Risk
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Understand your IT risks
and exposures, enabling you to develop plans to mitigate them.
How well IS minimizes the impact of unexpected results on
expected outcomes. Unmitigated risks can result in cost and schedule overruns, business
disruptions, downtime and resulting lost productivity. This category also considers the
risk of not implementing a given solution. |
| Improve
Planning
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Explore various scenarios
in order to forecast and quantify the impact of new IT planning initiatives.
Okay, so we know how much you're spending. You've got some opportunities
to reduce costs, but how? What option will provide the most savings and the greatest
return? Should I buy faster servers? Should I give my users more training? Should I
outsource my help desk? By looking at your TCO, the impact of these decisions can be
quantified. |
| Increase
Value
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Implement and build a
decision support methodology for driving continuous reductions in TCO and increasing the
value to the organization from IT investments.
The TCO Model also tracks the Economic Benefits, how your IT investments
lead to direct, tangible profits for your company, and the Business Benefits, how well
your IT investments align with the strategic business needs of your company. |
| Enable
Success
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Increase your odds of
success with a solid framework for business case development and planning and the ability
to measure your results.
By adopting the
ongoing use of TCO, your original saving forecasts can be validated allowing you to make
even more informed decisions on your IT investments. |
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