System management is usually the biggest cost over the lifetime of an IT system. It includes installation, upgrades, expansion, maintenance, support, training and the time your staff spend dealing with system problems.
So it's essential to consider full system lifecycle costs. Saving on purchase costs could result in significant additional costs on an ongoing basis, while cutting back on services could waste a fortune in staff time or lost business.
Initial costs could include:
Ongoing IT management costs could include:
Agreeing a budget and contract with a supplier can be a lengthy process. You need to specify every aspect of the project in as much detail as possible. This will help to control costs and highlight any problems you encounter during the project.
When you negotiate a contract for IT systems or services with your supplier, they will usually expect payment upon delivery of the system. However, it is worthwhile seeking to extend the payment period until the system is actually installed and working to your satisfaction.
The National B2B Centre