Key performance indicators for IS/IT indirect human costs in the service sector

Factors for Effective Communication of IT Costs and IT Business Value

“…Therefore, researchers develop conceptual frameworks to enable executives measuring the IT performance and thereby considering all IT-related costs as valid calculation basis [31]. They emphasize that not only the direct expenditures for development and implementation but also a variety of indirect costs related to human and organizational factors also count as IT costs [32]. However, organizations often still lack a clear understanding of the term "IT costs" and CIOs therefore face the challenge to transform non-constructive discussions about IT costs into a discussion about the business value contributed by IT investments [8].…”

“…We identified those "human and organizational factors" [31], especially outside the IT department. In a detailed study, [32] present various characteristics of indirect costs and emphasize the importance of recognizing these costs as IT costs to enable a holistic evaluation. Therefore, the perception of what IT costs are and to what extent they should be included in metric calculations must follow a clear process and be "determined by a clear cost structure" (FG2-3).…”