Reducing Total Cost of Ownership
The total life time cost of ownership (TCO) of major projects often contains ‘hidden’ costs that organisations are not able to have full visibility of. Frequently, only the most obvious ‘direct’ costs are incorporated into business cases. This is particularly true of outsourcing, where business cases often do not reflect the end to end value of outsourcing as it relates to a particular service delivery area.
When ICT outsourcing is also included within major organisational change initiatives, total cost of ownership can often be mis-calculated. This results in lower costs being reported than is actually the case once you incorporate all of the relevant dependency costs. For example, spend analysis can often identify the ‘true’ total cost of ownership across major organisational change, technology and outsourcing agreements.
We have a framework for analysing this data within ACCELERATE. We collaborate with you to identify the ‘hot spots’ of expenditure and put together a strategy to reduce the total cost of ownership across major projects and programmes. We can also assist in re-negotiating fixed contractual arrangements so that both you and your delivery partner benefit from the new arrangements.