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A Bird's-Eye View of IT Costs: Without the Wizardry

A Bird's-Eye View of IT Costs: Without the Wizardry. David L. Smallen, Hamilton College Karen L. Leach, Colgate University Cause 98 December 10, 1998. Wizard of Oz - 60th Anniversary. Dorothy and the Happy Winkies by Stacey. COSTS Participants. 97-98 98-99 27 100+.

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A Bird's-Eye View of IT Costs: Without the Wizardry

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  1. A Bird's-Eye View of IT Costs: Without the Wizardry David L. Smallen, Hamilton College Karen L. Leach, Colgate University Cause 98 December 10, 1998

  2. Wizard of Oz - 60th Anniversary Dorothy and the Happy Winkies by Stacey

  3. COSTS Participants 97-98 98-99 27 100+

  4. Core IT Services • Administrative Information Systems • Curricular Support Services • Hardware and Software Installation and Renewal • Helpdesk Services • Network Services • Planning and IT Administration • Repair Services • Student Computing Support Services • Training Services • Web Site Services

  5. Data Collection ProcessRepair Services FTE Staff Salaries Student Help Contractual /consulting Materials/supplies Professional development Miscellaneous Equipment Number of institutional computers Description of service delivery Collection Analysis Insight

  6. Project Goals • Short Term: • Identify and Understand Examples • Develop Unit Costs • Test Hypotheses • Long Term: • Identify Exemplars • Develop Benchmarks • Determine components of Total Cost of Ownership

  7. Grandmother Hypotheses Service Level Economy of Scale The unit cost of a service will decrease as the number of units increases. Quality Complexity The unit cost of providing services decreases with the degree to which they are outsourced. Outsourcing

  8. Repair Services

  9. Repair ServicesOutsourcing Hypothesis Average cost/computer

  10. Repair ServicesObservations from the Outliers • Level of expectation for problem resolution affects cost (e.g. expected turnaround time, point of repair) • Leveraging warranties can reduce repair cost.

  11. Administrative Information SystemsKey Indicators 24 small schools 25th AVG 75th FTE Staff 3.0 4.3 5.5 Total Cost(000’s) $195 $283 $327 Employees/ ITStaff 80 116 140

  12. Administrative Information SystemsOutsourcing Hypothesis 24 small schools Average for Vendor Systems In House-Systems IT Staff 4.1 6.5 Cost/Employee $707 $447 Cost/User $139 $133

  13. Network ServicesKey Indicators

  14. Network ServicesSmall Colleges

  15. Training ServicesKey Indicators 27 schools 25th Avg 75th FTE Staff 0.3 1.0 1.1 Cost/Emp $37 $96 $108 Cost/Hour $19 $55 $55

  16. Training ServicesOutsource Analysis 15 Small Schools, 11 Large Schools Small Large 20% LevelIn Out In Out Sample Size 9 6 9 2 Avg Cost/Empl $ 122 $ 88 $ 84 $ 62 Avg Cost/Hour $ 91 $ 25 $ 42 $ 20

  17. Helpdesk ServicesKey Indicators

  18. Helpdesk ServicesComplexity and Support Costs

  19. Quality The Missing Dimension

  20. Macro view Templates Test beliefs Collaboration

  21. The End For more information: Karen Leach - kleach@mail.colgate.edu Dave Smallen - dsmallen@hamilton.edu URL:http://www.its.colgate.edu/kleach/costs/costs.htm

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