Few organizations have visibility of all the costs – direct and indirect – that are associated with their service desk/IT Service Management solution. When acquiring a new solution, organizations typically focus their attention on the purchase and estimated phase one implementation costs and neglect to consider the running costs after go-live. However, predicting and monitoring costs across the full lifetime of the solution is critical for ensuring long term, cost-effective value from ITSM. It is only by understanding the true cost of an ITSM solution that you can make the best decision on which vendor to select.
The lifetime cost of a service desk and ITSM solution can vary greatly – with the major part of the cost attributable to license, maintenance and support fees, implementation services, system administration and upgrade projects. The spread of lifetime Total Cost of Ownership (TCO) across these areas will depend on the vendor, the product and the complexity of the customer’s requirements now and in the future.
Total Cost of Acquisition (TCA) |
Long Term Operating Costs |
Indirect Costs |
|---|---|---|
Licenses |
Maintenance and Support |
Downtime |
Infrastructure (hardware, software) |
System administration |
Impact on user support |
Implementation |
Infrastructure scaling |
Impact on business operations |
Customization |
Ongoing training |
|
Training |
Customization |
|
Upgrade projects |
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Next: Value vs. Cost
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