Price benchmarking IT costs

When new money is short in supply, and your Finance Director is pressing for measurable IT cost savings, what can you do to validate your existing spend or uncover hidden over-spend? That’s pretty much the question Silver Bullet Associates was asked today by an IT Director. It’s a good question so let me summarise what I said to him; price benchmarking is a great way to quickly ascertain if you’re getting value for money from your IT suppliers.  It’ll also highlight areas where you are paying too much (compared to other users of the same products or services). But selecting a benchmarker can be tricky as not all ‘benchmarkers’ are independent. Many ‘benchmarkers’ have some form of relationship with the very suppliers you want assessed. Just look at the main IT Research and IT Consulting companies; they advise both users and suppliers, which can cause conflicts of interest when it comes to offering best advice. So select your benchmarker carefully and look for true independence.

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