Practical tips and information about running an efficient service desk. News and information about HelpMaster, PRD Software and the ITSM industry.
Recently we were approached by a large government organization that are looking to replace their current service management software. At the helm of the product replacement team are seasoned ITIL practitioners and long-time helpdeskers who, in their words, are the "vanguard" of ITIL implementation. The software to be replaced is one of the leading, top-tier products on the market today. The reason for the replacement?
None of these things. The basis for replacement was because the maintenance costs were too expensive! To be sure, the annual cost of software maintenance and support is a factor in ROI and TCO, and its cost should never be overlooked in any software purchase decision. Industry norms for software and maintenance renewal costs seems to hover around 20% give or take. What makes this case interesting is the economic statement it makes about the following things:
ITIL advocates and evangelists around the world have long spruiked about the cost savings that ITIL can bring to a organization that effectively implements the service management framework. Although quantifying the savings and return on investing (ROI) ITIL delivers is tricky, many believe that it worth the effort. Others are sceptical and many more just don't know where to start. The debate is unending. From what I can tell about the ROI of ITIL, the jury is still out - particularly on how to measure it. On the other hand, service management solution vendors are quick to highlight the economic benefits of implementing their solution. There is no end the number of white papers that vendors pump into the industry. Some even go so far as to provide Excel ROI calculators where you can plug in operational metrics and watch the numbers come out in your favour before your very eyes! The questions remain though. If both ITIL and service management software solutions claim to have a positive ROI, why are companies and organizations around the world who have, or are implementing ITIL, dropping support for the big tools in favour of lower-cost alternatives?
What happened to their ROI?