Return on Investment (ROI)
This example is for illustrative purposes only and does not represent an exact ROI calculation. It aims to demonstrate potential cost savings and benefits when implementing IDM/IAM solutions.
Example ROI Calculation (Illustrative)
Estimated cost savings and operational benefits compared to implementation and annual costs for an organization with 100 employees.
Investment Cost (Cost for first year) - 400,000
- Implementation: 200,000
- Annual Cost: 200,000
Savings per users
- Salary cost per hour: 500
- Hours saved per year: 5
- Savings per employee: 2,500
- Savings per 100 employees: 250,000
Reduced Licensing Costs
- Licensing Costs per user: 10,000
- Optimized Licensing/Reduction: 5%
- Savings per employee: 500
- Savings per 100 employees: 50,000
Savings on IT Staff
- IT Staff Salary Cost: 600,000
- Reduction in IT FTE: 25% of a position
- Savings: 150,000
Benefits for first year: 450,000
Net savings for first year: - 400,000 + 450,000 = + 50,000
Other benefits include
- Increased security
- Higher quality / fewer errors
- Scalability and flexibility
Conclusion: Based on this example, implementing an IDM/IAM solution can result in a positive return on investment in the first year, while increasing security, improving quality and flexible scalability for future development.