(Dallas, Texas) March 5, 2013 — 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:
- Mainframe Services
- Server Management
- Storage Area Network (SAN)
- Network Management
- Service Desk
- Applications Development and Maintenance Labor Rates
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.