Information Systems Costs

Procurement Costs

Consulting costs
Actual equipment purchase or lease costs
Equipment installation costs
Costs for modifying the equipment site ( air conditioning , security etc)
Cost of Capital
Cost of Management and staff dealing with procurement

Start up Costs

Cost of operating system software
Cost of communication equipment installation ( telephone lines, data lines etc)
Cost of start up personnel
Cost of personnel searches and hiring activities
Cost of disruption to the rest of organization
Cost of management required to direct start up activity

Project Related Costs

Cost of application software purchased
Cost of software modifications to fit local systems
Cost of personnel, overhead etc from in house application development
Cost for training user personnel in application use
Cost of data collection and installation data collection procedures
Cost of preparing documentation
Cost of development management

On going Costs

System maintenance costs (hardware,s software and facilities)
Rental costs (Electricity, telephones etc)
Depreciation costs on hardware
Cost of staff involved in Information systems management, operation and planning activities.

Courtesy Roger S Pressman

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