What kind of payback should you expect from your company's investment in IT Services? Return on investment (ROI) is a common technique that companies use to evaluate the benefits they might realize from a software investment.
"Companies can still achieve cost savings of 25 percent to 30 percent if they outsource successfully" (Gartner 2007)
To get a clear picture of the benefits your company can expect from implementing IT Services for your management solution, you'll first want to understand the impact of your current issues on your bottom line, as well as your goals for implementing IT Services. For instance, your company may want to reduce billing errors and speed up receivables, or to streamline sales to improve revenue per customer. By quantifying these benefits, you'll get a better idea of what your payback will be.
Some typical areas of benefit may include:
- Productivity - Streamlined business processes may allow your employees to accomplish more in less time.
- Labor costs - Automating certain tasks can reduce the number of people required to support your business.
- Financial performance - More accurate financial reporting can speed receivables or give you a more accurate picture of your short- and long-term balance sheet.
- Customer revenue - By using IT Services to recognize customer needs, you can increase revenue per customer, or reduce customer turnover rates.
- Technology maintenance and support - Less money may need to be spent on maintaining out-of-date legacy systems, improving your bottom line.
- Process improvements - You may be able to eliminate certain costs through automation; for instance, electronic billing can reduce paper invoices, mailing costs, and even certain bank deposit fees.