Calculating ROI for SAP Managed Hosting: Employees

While preparing for our session at next month’s Outsourcing In Your SAP Environment 2011 conference, we at itelligence spent some time discussing how different components influence overall data-center costs. We documented our discussions and came up with a list to help prospective SAP Managed Services (Hosting/AMS) customers calculate their actual or potential return on investment (ROI). The full list includes a wide array of cost factors, which range from the creation and operation of data centers to the costs of employee events.

There aren’t many items on our list that are particularly surprising. By putting all these common-sense cost components together in one place, we hope to help companies interested in services like our SAP Full Managed Hosting calculate their ROI.

This post is the first in a series outlining the cost components, starting with employees.

By outsourcing SAP, companies can lower costs associated with IT personnel who have the skill set necessary to properly support an entire SAP landscape. Salary and benefits are the obvious cost components here, but there are plenty of more nuanced factors as well. For instance, there is retention and recruiting costs, which could be very high based on turnover rates. Office space is another aspect that companies often fail to account for—at least until they’re running out of it.

Here are a few additional employee-related components that made it onto our list:

  • Training
  • Computer Equipment
  • Employee Utilization Rates

The full ROI-calculation document includes not only additional considerations for employees, but also costs associated with data centers and vendor management, as well as network and hardware. To receive the complete (and completely free) calculation document, just email us at

We look forward to seeing everyone at Outsourcing In Your SAP Environment 2011. Our session is titled, “How to achieve quick ROI and maximum value when using hosted applications or technical services.” You can also visit us at booth #510.

Be sure to subscribe to this blog to receive updates for the remaining posts in our series on calculating ROI for SAP Full Managed Hosting.

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