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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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