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Database Management Systems & DBMSs

Cost

The main costs deriving from the use of calculators are:

  • purchase
  • installation
  • maintenance
  • training operator (instruction courses for technicians who work there)

When a company turns to an external one to obtain services. It is necessary to better manage what the company achieves (core business), everything external is treated as a cost (outsourcing).

Outsourcing contracts are long and complicated contracts where the company requests external services that are not strictly related to its "core competence", i.e. the company outsources everything that is not purely related to what the company must achieve. We try to move what is a competence of the company outside, making it cost, but we save on the resources used within the company.

The sectors in which outsourcing was done first is ICT, logistics and, recently, also the administration itself. One advantage that is obtained is that the organization is relieved of some burdens that are charged to external companies as services (external know-how is used), a direct consequence is that, however, direct and constant control is lost over what is outsourced.

Cost estimation is a major problem for IT, especially if oriented to estimate the possible savings that the adoption of a technology could generate (Ex: with an e-mail it is difficult to estimate where you are saving).

A figure who assumes value depending on this is able to reduce the costs of information technology is the CIO (Chief Information Officer), because he demonstrates that his power does not depend on the money he manages, but on how much money he saves the company.

The situation currently present in organizations has various characteristics

  • the technology has stratified and reorganized itself generally around an ERP by adding pieces. The level of heterogeneity is complicated by the fact that there are both batch systems and online systems (web based, ....)
  • access to all the services provided by the systems is via a personal computer.

The problem for those who use technologies and for those who produce them is to evaluate what is available and to do so it is necessary to find rigorous criteria.

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