Cost-efficient or cost-effective?

feb 21, 2023

No one wants to pay too much, especially when it comes to IT services. But what is too much? The services can be performed at very low cost, but do they meet the actual need? Or do you often have to provide additional tasks, including the associated costs, to get the desired level of service?

Something costs what it costs. For decades, there have been companies that carry out benchmarks and demonstrate what IT services cost. Thinking that you have made a very good deal with a very cheap deal can sometimes go wrong. The likelihood of the supplier actually delivering what you expect (“I can expect that…”) becomes greater as the rates deviate further from market-conforming rates. (not by introducing extra KPI’s, see my previous post). Something just costs what it costs!

The price for the service must be ‘fair’. Suppliers who know that they comply with this are often very transparent in their tariffs. As a customer, you must accept that a supplier is entitled to a healthy margin. This ensures continuity, quality and gives them the space to sometimes ‘go the extra mile’ for the customer.

If this topic interests you, do you have relevant experiences, ideas or a different opinion? I would be happy to discuss them with you.

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