Return on Investment (RoI)

The “What is the return on the investment?” question is the bane of many an IT manager’s life. After all, no-one looks for an ROI on a desk or chair, a pot plant or water cooler. Do they?

However, of course, IT is an essential cog in the operation of any company, from research and development to basics such as payroll. It is therefore essential that IT operates efficiently - which needs investment - but also cost effectively. Hence the need for an accurate ROI.

IT decision makers typically find it difficult to meet a set of conflicting objectives.
Although they need to adapt to continually changing business requirements, they also have to minimize the cost of new investments and reduce the cost of maintaining existing assets.

The obstacles faced by IT decision makers also make it hard for people in operational roles to be cost effective. Project managers, developers, and architects often have little knowledge about the software, hardware, and interdependencies among the systems they work on. In the absence of good information, research takes longer, mistakes get made, projects go over budget, and end-user requirements can go unmet.

So the starting point for calculating ROI is about having the best information on the IT systems as possible.

Support Tree’s management software provides 24 hour monitoring and pro-active service delivery capabilities, generating reports on usage, reliability and more, that can result in increased productivity, consistent service levels, increased utilization of staff, expanded service capabilities, cost reduction and much more.

We can then advise you on optimum investments in hardware, software and systems, taking into account product lifecycle costs. Then we apply our FAST ROI application, to save you time and effort. Simply enter what you know (project’s cost and expected financial benefits) and the software automatically calculates for you those figures that accountants love: Payback, Net Present Value NPV, and Internal Rate of Return IRR.

And while you are contemplating whether to outsource your IT to Support Tree to take advantage of these benefits, take into consideration that:

• In-house IT Staff are estimated to be only 40% utilized.
• Actium Consult report that Total Office Cost per employee in the West End is £15k per employee.

For more information contact James or Neil at 0800 292 2230