We help IT Professionals succeed at work.

BI outsourcing service

Hi,

I am trying to get an estimate of the costs involved in outsourcing a BI system. I have the BI development skills but I need to outsource DBA and Network/Security Management skills as well as server maintenance. How much would it cost me to pay for those skills and concentrate on the BI development skills?

I know this is a very open question, so it is ok to give open answers. I post it with the intention of generating a discussion that can bring up valid issues that can help me focus and find starting points.

Thanks in advance and regards.
Comment
Watch Question

Top Expert 2011
Commented:
- few things to consider:

1- project/outsourcing period: how many months/years?

2- project team: 3 including yourself. cost/salary for each technical expertise per month * period of project. you need to find these expertise and get their price to draft the cost of each person. also prepare a few other names, incase the person that you've selected earlier quit the project or having some other problems along the way. some expertise charge by day so you need to plan/estimate when these person need to be on-site/working for the project - you might not need them working for the project throughout the project period to minimize the cost. put it all in agreement to secure the team commitment to the project.

3- project resources: if your BI system need a new server, add the server and maintenance charges to the cost.

4- project location: you might need to consider the travelling cost for your team.

5- the BI system price tag.

6- after sales services/1st year maintenance cost. servers nowadays come with 3 years warranty but check what it covers. does the client need a 24x7 or 8x5 days and on-site/telephone support  from the server principal/vendor and from your system/technical team? i used to allocate additional 10-15%  from the project cost as the 1st year maintenance cost.  

7- adding all the above you will get a draft of total cost for the project. then calculate how much is the profit you want to get from the project. then sum it all.

8- if you plan to charge the client by monthly, then divide the total quotation by the month of your outsourcing services.

OP
Top Expert 2011

Commented:
- if you not intend to sell the BI system at the end of the project period, then you might not need to include the full price of the system in the costing.