Calculating ROI for IT is complicated for many reasons, not the least of which is that unanticipated, indirect costs can pop up over time. To avoid unpleasant surprises, Eric David Benari, CTO for the social shopping network PlumWillow, suggests taking a very broad view of costs and benefits when deciding whether to "build or buy."

The ROI ramifications for building, buying and paying a third party to build for you are not always obvious, Benari writes in a column at Forbes. An ROI analysis for building something in-house has to include the overhead cost and salaries of the people who are reallocated from other tasks. There is also the cost of hardware, such as server depreciation, which must be considered.

Purchasing a product typically costs less upfront, but there are other factors that must be considered in the ROI analysis. Even if there is a free, open-source solution for you, integration and customization bring additional expenses that must be factored in. What's more, you have to consider the time that must be invested in training on the new product.

"A common oversight in ROI analysis is not to account for the intuitiveness of usage and administration," Benari warns. "More complicated products will require more salaried time at ramp-up."

Some unexpected ROI variables can have a positive effect, however. If you conduct an analysis effectively, you can find high returns in places you might not have anticipated. Telecommuting, for example, offers great ROI potential, in Benari's view, including decreased overhead expenses and elimination of commuting time. "These things increase team morale and have environmental benefits, but the real gain comes in the modified work dynamics," he writes.

For more:
- see Eric David Benari's column at Forbes

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