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The Hidden Costs of IT Support
Opinion by Brent Flint
The price on the bottom line of your ICT maintenance contract is often not what you actually pay for support.
This is not because your service provider is billing inaccurately; in fact, it has more to do with costs incurred by your own organisation’s internal teams and structures.
Brent Flint, Middle East and Africa Services Executive at Dimension Data, points out that the bulk of support-related expenses fall outside the scope of traditional support offerings.
The goal should therefore be to reduce total cost of support by recognising and eliminating ‘hidden’ expenses, and not to cut down on externally provided services that you might later regret discontinuing.
Many vendors, many processes
One example of a hidden cost, says Flint, is the expense incurred in managing the support processes of different vendors.
“These processes are never the same for every service provider. So the more vendors you have, the more intricate your support environment is to manage. And the more complicated this management is, the more mistakes are made and the more downtime occurs which, in turn, drives up your operational costs. At the same time, your organisation would require more service vendor management, which means more work for your procurement department, more effort to keep up with vendor research, and more contract management and renewal complications – all of which add to your total cost of support.” By reducing the number of vendors in your environment, you can lower your total cost of support.
Which level of service?
“Some of these hidden costs are inversely related to the type of service contract you have in place,” adds Flint. “The simpler and cheaper the contract, the more costs are carried internally. For example, should an organisation decide not to buy a premium level of service but opt for a simple ‘break-fix’ service instead, a large degree of management is required on the business’ side to initiate and ensure the proper delivery of the service.
The internal support team would, firstly, need to be aware that a piece of equipment has malfunctioned, which implies the need for some form of monitoring as well as an internal help desk. The internal team would then have to determine if the equipment is under contract and, if so, with which service provider.
Again, this takes time and effort, and the more out-of-date or incomplete the organisation’s asset register is, the longer and more involved this tracking process becomes. “When the call to the break-fix service provider is then finally made and the new equipment is installed, the business still has to ensure that the equipment’s service to the organisation is restored and runs as smoothly as before.
The result of this is that businesses spend far more on ‘cheaper’ break-fix services than they realise. Using a service provider to restore equipment as opposed to delivering a simple ‘break-fix’ service might seem like it costs more, but the organisation would need far fewer in-house administration and engineering resources to ensure maximum business continuity.” Freeing up your internal support team by relying more on a service provider’s capabilities can lower your total cost of support.
On foreign shores
Another cost that’s often overlooked by international organisations is foreign service tax liabilities. Flint explains: “If a chosen service provider isn’t large enough to have billing entities in all the countries in which an organisation has a presence, it incurs a foreign tax liability for procuring services in those geographies. That’s a factor that many businesses forget.
Choosing a service provider with coverage in the countries in which you operate can lower your total cost of support. On the other hand, an area in which businesses tend to under-spend is in service entitlements. Best practice in determining which service levels you need is to categorise your locations by availability requirements.
The highest service level requirement might be for your data centres, which would need a 7x24x4 entitlement to ensure maximum uptime for business-critical systems and processes, whereas a satellite location might need only an 8x5xnext business day entitlement owing to the location’s lower importance to the overall business. When we do the location versus- support analysis with some of our clients, we often find that their service level coverage is not the right fit in many locations. In a few cases, the service level may be set too high but, more often than not, organisations have opted for cheaper options with less support than they really need.” Right-sizing the service level to the requirements of the location can lower your total cost of support.
Short on skills
One of the most important reasons why organisations need external support services is because they lack the required in-house technical skills.
Exacerbating this problem is the general shortage of technical skills worldwide, as well as the more pronounced lack in developing geographies into which international organizations might want to expand.
Flint believes, however, that the most impactful factor contributing to skills shortage is the pace of technological change. Given the day-to-day pressures of in-house IT support teams in ensuring maximum business continuity, not much time or budget is left to channel into up skilling employees on the latest advances.
“For example, when IP telephony first emerged, there was a distinct lack of expertise and knowledge in this particular area,” says Flint.
“The same would probably be the case as the market moves towards adopting the new software-defined network approach. Knowledge and expertise can only be gained over time and, therefore, always lag behind the introduction of new technologies. The problem is also that the variety of different technologies involved in organisations’ estates is so wide that they simply can’t afford to skill up each time there’s a change or new development in the market.” Using shared, skilled resources of a service provider can lower the total cost of support.
Global scale
While certain smaller, often localised, service providers may be able to offer some of these proactive components, Flint believes large, multinational organizations would do better to consider partnering with a global support provider that can offer several such elements in combination and at scale, which would save costs.
“Most importantly, the service provider should be able to deliver these services consistently and reliably around the globe.” If you’re a large, multinational organisation, leveraging a global service provider’s scale can lower your total cost of support.
Whichever of these steps you choose to lower your total cost of support, these choices will deliver a simpler, more consolidated and more proactive overall support environment, with fewer hidden costs to think about.
d.light, the global provider of transformational household products and affordable finance for low-income households, is providing 10,000 subsidized solar home systems to refugees who have fled conflict in South Sudan and the Democratic Republic of Congo and who are now living in refugee camps in Northern and Western Uganda.
The 10,000 units are part of a wider initiative to supply 23,000 solar home systems to Ugandan refugee communities.
The project is being funded by a USD$3.4M grant from Private Sector Foundation Uganda (PSFU), a body made up of business associations, companies and public sector agencies in Uganda: and Energising Development (EnDev), an international programme by the German, Dutch, Norwegian and Swiss governments to provide access to affordable, reliable, sustainable energy for delivering social, economic, and environmental change.
The project began in April and is scheduled to run for 12 months. Funds from the grant are subject to results based financing (RBF) and d.light will only receive funding for solar home systems that have been installed.
Each solar home system from d.light features three high-efficiency LED lights, an FM radio with MP3 playback, mobile phone charging capability, and a portable solar flashlight.
Commenting on the news, d.light’s Managing Director for Uganda Douglas Gavala said, “With this grant, we can expand the important work we’re doing to improve living conditions for underserved refugee communities from South Sudan, the DRC and elsewhere who are living in refugee camps in Uganda.
“A solar home system significantly improves the quality of life and wellbeing of a household – whether it’s providing entertainment or letting a family stay up to date on local and global news on the radio or enabling children to continue reading and studying after dark.
“As well as benefits at home, d.light products also bolster household income in Uganda’s refugee settlements by extending working hours for tradespeople and small businesses, and providing an income for residents who work as d.light salespeople in the settlements.
“By providing high-quality solar products at an affordable price, we are improving the quality of life for displaced people while simultaneously encouraging economic activity at a grassroots level.”
To forge strategic partnerships and collaboration for the advancement of Nigeria’s digital transformation Agenda, the Director General of the National Information Technology Development Agency (NITDA), Kashifu Inuwa has reiterated the need for a safe and inclusive online environment responsible for human and Artificial Intelligence (AI) practices in country.
Inuwa made the statement while playing host to a team from TikTok who visited Agency’s Corporate Headquarters in Abuja to seek alliance towards bolstering the country, which aligns with President Bola Ahmed Tinubu priority area of strengthening national security for peace and prosperity.
The DG stated that content moderation strategies will help in addressing online problems like hate speech, misinformation, and cyberbullying in relation to the protection of minors across the country.
“With the Code of practice for Interactive Computer Service Platforms/Internet Intermediaries in place, this has helped in ensuring digital safety in accordance with global best practice and content moderation to enhance security”, he said.
He further noted that “no organisation or institution can operate in silos, we need each other for the actualisation of our goals and objectives towards services delivery and for the advancement of the Nation.”
Highlighting some critical areas, Inuwa stated that leveraging on the platform will advance the country through Digital Literacy 4 All (DL4ALL), Capacity Building, knowledge sharing, trainings, and curbing misinformation, digital safety with the aim of creating a safer cyber space and empowering online environment for Nigerian users.
He added that the platform allows for creative expression through filters, stickers, and editing tools, entertainment and comedy are dominant themes, and informational videos on various topics are gaining traction which has become a launchpad for influencers and trends that can go viral.
Inuwa also explained that NITDA’s Strategic Roadmap and Action Plan 2.0 (SRAP 2024-2027) is structured around eight pillars which include; Fostering Digital Literacy and Cultivating Talents, Building a Robust Technology Research Ecosystem, Strengthening Policy Implementation and Legal Frameworks, Promoting Inclusive Access to Digital Infrastructure and Services, Enhancing Cybersecurity and Digital Trust, Nurturing an Innovative and Entrepreneurial Ecosystem, Forging Strategic Partnerships and Collaborations, and Cultivating a Vibrant organisational Culture with an Agile Workforce.
In her earlier remarks, the Head of Government Regulation and Public Policy TikTok Nigeria and West Africa, Mrs Tokunbo Ibrahim has revealed that NITDA is one of its biggest and critical stakeholders in Nigeria that has an outstanding strides and performance in advancing the digital economy sector.
Ibrahim commended NITDA for its various initiatives, programmes, and policies set in place and aligns with that of TikTok, providing the opportunity were Nigerians use the platform to market, sell and export their products and services as well as talents to the outside world and make a living out of it.
She pointed out that there are projects and programmes that TikTok platform has forge ties of collaboration with, like the Africa creator hub where they do campaigns for tech creator, support, empower, and educate them on how to create contents and explore other sections of the platform, changing their narrative and adding values to what they are doing.
Ibrahim also added that TikTok platform considers online safety as one of its critical areas to secure the cyber space by providing an avenue for users to thrive and be productive in their various activities.
TikTok is currently running African mall to push the narrative of Africa to the world and creators are being equipped with information that they can create contents for products and services in Nigeria, thus can be exported to other countries of the world attracting investments
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Dr. Adesina, AfDB Group President Calls for Media Transformation to Uplift Africa’s Global Narrative
Dr Akinwumi Adesina, the President of the African Development Bank Group, delivered an impassioned plea for more balanced media coverage of Africa and its development, noting it was critical for changing false narratives.
Adesina said this on Thursday in a keynote speech to the All Africa’s Media summit in Nairobi, attended by nearly 300 participants from across the continent. He praised the crucial role the media plays in strengthening democracy and advancing inclusivity.
The Bank Group president said there were many positive developments in Africa yet the continent continues to suffer misrepresentations which undermine its economic progress and investment potential.
“Despite the significant progress within our continent, the prevailing media narrative often focuses on negative stereotypes, overlooking the substantial advancements and resilience Africa demonstrates,” he added.
Adesina said there was plenty of positive news to report about and highlighted the continent’s economic resilience regional and amid global challenges. He said that in 2023, Africa’s growth rate surpassed the global average, with 11 African nations ranked among the world’s fastest-growing economies.
Adesina referenced a 2021 Africa No Filter Report, which revealed significant adherence to outdated and negative clichés in media reports about Africa. “It’s time for change,” he declared. “We must reshape the narrative about Africa to reflect its true spirit and potential.”
He emphasised the critical nature of information and its ability to have a profound negative impact on development and investor perceptions even though an in-depth investigation by Moody’s Analytics had shown the continent was much less of a risk than many other continents.
“We must promote a balanced view that highlights both the challenges and the many successes of Africa. It’s about changing perceptions and showcasing Africa as a continent rich with opportunity and innovation.”
The Bank Group President also spoke about the challenges and transformations within the media sector, highlighting the impact of digital technology.
“The media landscape has dramatically shifted with the rise of the internet and mobile technology, leading to a proliferation of digital platforms,” Adesina declared.
“While this has democratised information, it has also complicated issues, the distinction between fact and fiction can become blurred.”
To counter unfair and unbalanced narratives, Adesina urged the creation of a powerful, globally respected African media and proposed strategic collaborations among regional financial institutions to support this cause, emphasising the need for media to act as a catalyst for development.
“We need to celebrate and promote the continent’s successes, turning the tide against the longstanding stereotypes that have clouded the global view of Africa… What you call yourself, is the name others will subscribe to you.”
“For as long as we continually denigrate ourselves and play into the hands of those who control the narrative about Africa, we will be stuck with a label that does not belong to us,” he concluded.
He highlighted the African Development Bank’s own successes which included maintaining a AAA credit rating and launching groundbreaking financial initiatives that have earned it respect as an innovative and successful multilateral development bank.
“We have proven that Africa can lead with innovation and strength in the global financial landscape,” the President remarked. “Yet, these achievements receive minimal attention compared to the persistent focus on Africa’s challenges.”
Adesina added that just one month ago, the Bank launched a landmark $750 million hybrid capital instrument, again with a Triple A rating, which was oversubscribed eight times. He described this as a huge “testament to the confidence and trust in Africa’s burgeoning financial capabilities.”
He pledged that the African Development Bank remained committed to supporting initiatives that would help the media present a more balanced and progressive portrayal of Africa and support its economic development.
In a discussion with Julie Gichuru of the Mastercard Foundation after his address, Adesina said Africa was blessed with energy sources, but millions remained without electricity. “This must change,” he said.
“We cannot industrialise in the dark, we cannot develop in the dark. Our children cannot be competitive in a world of darkness,” he concluded.
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