Special Report on
Understanding Total Cost of Ownership
Understanding Total Cost of Ownership - Trends
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Several trends have boosted the adoption of a strategic purchasing focus. These trends include more emphasis on the quality of purchased materials and services, supply base rationalization, and increased global competition, to name just a few, all in the light of the growing recognition of the significance of purchasing expenditures (Ellram and Siferd 1998). Purchasing decisions quite often affect a large part of a company's total costs, not only in terms of direct acquisition costs but also regarding indirect costs in the areas of inventory management, quality assurance, administration, and payment, among others. TCO is a ...
Applying TCO to lifecycle management of desktop PCs reveals hidden costs and helps IT leaders make better PC purchasing choices. Use this report to understand the detailed steps involved in calculating PC TCO. Total Cost of Ownership (TCO) is a costing analysis model that is used for all costs incurred and associated with an asset over its lifecycle. It was developed by Gartner Inc. ( www.gartner.com ) during the last years of the 1980s as a method to determine whether an organization will benefit from a specific technological implementation or acquisition. The TCO concept initially met ... Read More
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