ROI measurement falling short, survey shows

Edinburgh: 19 december 2002

Fewer than half of businesses use Total Cost of Ownership methodologies, according to IT support professionals.

Just under 50 percent of delegates at the UK IT Service Management Forum’s annual conference in Brighton said their organizations did not employ such methodologies or admitted they were not even familiar with the term. More than one-third of them, surveyed by IT Service Management software specialist Axios Systems (www.axiossystems.com), asked for more information on the subject.

“The demand for more information on Total Cost of Ownership underlines a growing requirement to measure the Return On Investment (ROI) from IT systems and cost savings, which can be huge,” commented Ailsa Symeonides, Sales and Marketing Director of Axios Systems.

Research carried out by industry specialists Gartner, Aberdeen, IDC and others suggested that the five-year Total Cost of Ownership for a PC was just under GBP 30,000 (almost USD 50,000) - similar to the cost of a company car, she added.

The Axios survey also quoted 84 percent of more than 200 delegates questioned as saying IT software integration was important in their organizations with two-thirds saying it should conform to the IT Infrastructure Library (ITIL®).

“Gartner has reported that application integration will be the most important IS deliverable during the next five years,” Symeonides said. “Our survey findings have backed this up.”

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