Cost of ownership

When considering the pros and cons of outsourcing, you’ll need to think about the ‘total cost of ownership’. This is also known as the ‘total cost of operation’.

This method of assessment covers the up-front cost of purchasing hardware and software, but also all the other aspects of further use and maintenance. For example, you should consider issues such as staff training and staff support. These can be significant when your business reaches a certain size.

But that’s not all. There are also issues such as the business cost of service failures, and perhaps even the complete loss of data. That’s why we include disaster recovery as part of our service package to every customer.

Of course, there’s the cost of depreciation and upgrades. And the cost of disposal too.

We’ve included a cost of ownership calculator here. It’ll give you an appreciation of how costs can mount up.

That’s why IT outsourcing is becoming more attractive to many small and medium-sized businesses. It could make sense for your business too.