Do you know the TCO, and why you could be missing out if you don’t?
A quick post here on TCO, and why its so important to IT procurement.
For those not familiar, TCO stands for Total Cost of Ownership. If you take the definition of Gartner, the “world’s leading information technology research and advisory company”, TOC is a “comprehensive assessment of information technology (IT) or other costs across enterprise boundaries over time”.
This is an important factor when it comes to procurement, particularly if you’re involved in the public sector – a school or a hospital, for example.
Why? Because TCO doesn’t just mean the initial cost of, for example, IT equipment. It can mean, as Gartner goes on to say, “hardware, software, management and support, communications, end-user expenses, downtime and productivity losses”.
Where a supplier could, rightly, say that their product is cheaper on the finances, take TCO into consideration and the outcome might be different.
It might be that three years are specified in a tender, but what happens if you stretch that to five years and the TCO is a lot lower?
Have you fully assessed everything about the solution you have chosen? Have you costed everything out over the whole life of a particular product?
Does one plus one really equal two? Or three?
What happens if you are wowed by the low-costs of a product but then you see what it could be like five years down the line with a different solution?
The key is looking beyond what has been presented to you. Ask questions. Dig deep into the true financial costs and consequences. If your budget is tight, which in all probability it will be, just think what those savings, over time, could also fund.
What might you be missing out on?
Make sure you have ticked the TCO box when you are procuring a print solution.