Award winning benchmarking, sourcing and
transformation advisory firm, Alsbridge, Inc., today released a report on Benchmarking
Your Global IT Enterprise. Emphasizing the importance of cost segmentation in the benchmarking process, this
report offers advice on how organizations can place their existing IT costs into market comparable
"buckets."
Internal IT departments often have cost structures very dissimilar to
current or typical market pricing packages. Outsourcing providers
package services in infrastructure "towers" including:
At one extreme,
budgets for an IT enterprise may be no more than a single column of
costs in support of all aspects of IT, applications and infrastructure services
combined. Sometimes it is broken into two groups of cost: infrastructure
services and applications, but rarely is it broken into the noted
infrastructure "towers" that may be compared
to outsourcing providers' services. It is integral to know where you
are coming from to understand where you need to go.
Ben Trowbridge, Chairman and CEO, Alsbridge Inc., says “When taking the cost segmentation to the next level, be
prepared to go to a low level of detail to separate some costs from an existing
cost or price so that the cost elements of the services are packaged similarly
to the current market price packaging.”
It is very important to make sure you understand the current budget format and availability of information as you enter discussions on any market analysis. At many large companies with global IT support, often the budgets in the headquarters' locations are in order, but many field offices and remote locations will be at the other end of the spectrum. In many cases, it may require multiple months to build an internal cost or price model that is comparable to current market prices for a global organization. This ultimately affects not only the total cost to a client for a project like this, but will also affect the schedule of the market price analysis effort.
To know more
about Benchmarking Your
Global IT Enterprise, download the complete report here.
About
Alsbridge Inc.
Alsbridge provides world class sourcing advisory and benchmarking services for
the CIO, CFO and CPO. We’ve helped
hundreds of companies reduce costs and get more value from their vendors. Our experienced consultants leverage
proprietary tools and information databases to identify and engage the optimal
vendors for your situation, negotiate best practice terms at fair market
prices, and improve the way you work with your vendors. Alsbridge clients utilize the most cost
effective and value added sources globally for IT infrastructure services,
hardware and maintenance, network services, software and maintenance, application
support and development, business processes and cloud services. Alsbridge was
ranked the #1 outsourcing advisor in the world by the International Association
of Outsourcing Professionals (IAOP) based on the value delivered to
clients. This commitment to delivering
value to our clients has made Alsbridge a distinguished member of the 2010 Inc.
500 fastest growing privately held companies in America.
