Total Cost of Ownership

Total Cost of Ownership Calculator
A Total Cost of Ownership (TCO) analysis can be a key first step that provides a solid foundation for the Sourcing Analytics service portfolio.

With this analysis, stakeholders can make informed decisions about the financial impact of outsourcing versus other internally based options or update the resources they employ based on market conditions or within the organization itself.

In the world we serve, we define TCO as:

A measurement of the true expense for processing payroll, administering employee group and health benefits, and managing other key HR systems and functions.

This comprehensive analysis accounts for:

  • System costs for implementation, upgrade and maintenance
  • Labor costs for processing and systems in whatever department they may reside (payroll, HR, finance, accounting, IT, legal, etc.)
  • Non-labor costs such as facilities, general and administrative, third party payments, etc.

How We Provide You with a True TCO

Via our proprietary Sourcing Analytics Financial Analysis Tool we baseline all your costs across payroll, HRIS and benefits administration. We then benchmark your data against hundreds of other organizations as well as peer groups for a deeper understanding of your costs.

By collecting costs across departments and breaking down the components of each, we are able to see the impact of capital investments made and determine the effectiveness of that investment.

The result— a thorough grasp of internal and external costs which will pinpoint inefficiencies, gaps and redundancies that impact the bottom line.

A Collaborative Process

Since you provide the data and understand how the calculations are made, the numbers reflect your true situation—without bias. But to ensure data is correct, we review it against normal distribution and identify questionable answers. The process is thorough, yet efficient with minimal disruption to day-to-day operations.

The Ability to Make Informed Decisions

Sourcing Analytics delivers a clear and actionable report enabling organizations to make informed decisions related to new system implementation, upgrades, change management or outsourcing by using benchmark information to project the potential impact of any chosen path.

A Proven Model

Close to two hundred organizations have utilized Sourcing Analytics to baseline and benchmark their costs and make informed decisions for a course of action in a most cost effective manner. Through our targeted analysis organizations can save thousands of dollars in consulting fees typically spent pursuing an analytical path which nets little return. Our actionable reports ensure that you’ll be in a position to make decisions that will decrease your TCO while concurrently increasing productivity.

Ready to take action in TCO evaluation

Donald Glade - Founder

Donald Glade, expert in TCO analysis Don Glade is the industry’s leading authority on determining the TCO of HR, benefits, and payroll service delivery. Read more.

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