What is the total cost of ownership of ICT?

Total cost of ownership is a way of accounting for all the costs likely to be associated with a given activity, which could include:

Initial capital costs
The cost of the hardware, software and specialist equipment you require.

Installation costs
You want to pay for someone to set up your new hardware and software in the right order and make sure it’s all working. Or you might need equipment to be connected to a network, adding costs such as cabling and wireless networking. You will also need to consider which of your staff use laptops and who will need to access this network.

Software and upgrades
Your budget must allow for the fact that all software is updated and improved from time to time, often requiring upgrade fees.

Training
The cost of buying training your staff or volunteers, as well as an allowance for time set aside to attend courses and practise new skills.

ICT Support staff or volunteers
Budget for the salaries of ICT support staff, time needed to manage a volunteer or a proportion of the salary of your Accidental Techie.

Making donations useable
Second-hand equipment may be cheaper than new but it could also require repairs and upgrades, such as extra memory or a new screen.

Maintenance costs
Without regular maintenance, failures and repair costs are likely to increase.

Staying connected
The monthly cost of your broadband, plus any use of your mobile for internet access when you’re out of the office.

Repairs
Even well-maintained equipment can fail, so keep your paperwork to make any claims within the warranty period, but be ready to pay for repairs when necessary.

Disposal costs
New legislation may mean you have to pay a fee for proper disposal of your equipment.

Replacement costs
Hardware and software can be superseded, or new tasks may make new demands.