IT Costs and Value Management

IT is under constant pressure to streamline costs and improve performance, among others, due to the following facts:

• IT expenses are often one of the five largest cost items in companies,
• one third of corporate IT projects are abandoned,
• 51% of completed projects cost 2 to 3 times more than initially budgeted and last three times longer than originally assumed,
• many IT investments have no relevant business reason, real return on investment plan or estimated total cost of ownership.

How can PwC help you?

Cost and performance streamlining helps organisations to benefit from investments

Cost transparency:

We advise our clients to provide them with cost transparency, so that organisations understand how and what their IT budgets are expended for. This enables to identify cost items, which allows effective IT cost reduction using reliable concepts such as:

• Activity Based Costing,
• Total Costs of Ownership,
• Project Portfolio Management and service catalogue management.

Benefits:

1. Cost transparency
   
   
   • more comprehensive information on the actual IT costs thanks to the implementation of a metrics system and feedback mechanisms in the implementation of programmes, projects and service maintenance
   • active management of the costs of IT investments, projects and services
   • optimisation of IT costs thanks to a wider perspective of possible solutions, e.g. outsourcing and benchmarking of the available market solutions
   • provision of a real business reason for high IT expenditure
   • better IT cost forecasting
   
   
   
2. Value transparency
   
   
   • standardised and transparent IT investment and project prioritising and qualification procedure in the context of the costs and business needs of the entire organisation
   • independent, expert assessment of the value provided by key IT projects and investments before, during and after their implementation
   • independent, expert assessment of the value provided by third parties as part of IT projects and investments implementation
   • streamlining and management of the value obtained in terms of the costs incurred (Earned Value Management)