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Structural reasons why large organisations spend too much for ICT services  

In most organisations ICT service costs are not transparent. Although organisations of certain size and complexity do allocate substantial resources (in terms of FTE and IT systems), the documented costs per service are not transparent, often faulty and bear a large cost saving potential. There are several structural reasons for this fact:

[1] Complex and inaccurate invoices do not explicitly refer to relevant contract parameters and are therefore difficult to control
[2] Limited availability of consolidated service relevant specifications hinders the controlling function
[3] Lack of relevant information in the accounting system leads to development and maintenance of proprietary stand alone solutions
[4] Lack of IT system integration leads to inefficiencies and errors

These conditions ([1] Complex and inaccurate invoices, [2] Limited availability of service relevant specifications, [3] Lack of relevant information in the accounting system and [4] Lack of IT system integration) induce most of the organisations to adopt compromises regarding invoice and service cost control: In fact many invoices are often not controlled at all and actual service cost information can only be made available by detailed analysis of a large amount of confusing and contradictory data, received from the different sources within the organisation. The outcomes are substantial inefficiencies and typically high cost saving potentials for ICT services.

Smart ICT Cost & Quality Management Services – SIMS

SIMS automates the process of ICT cost auditing as far as possible and enables organisations to quickly and effectively determine the actual and real service cost, the cost saving potential and the actual service quality performance. Thus, SIMS provides a well-defined basis for service cost reduction, service quality improvement and enables large organisations to improve their supplier and service management.

Contact us to learn more about how to gain more transparency in ICT service cost and how to achieve sustainable savings:
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