Total Cost of Ownership
In addition to direct costs, systems developers must identify and document indirect
expenses that contribute to the total cost of ownership (TCO). TCO is especially important if the development team is assessing several alternatives. After considering the indirect costs, which are not always apparent, a system that seems inexpensive initially
might actually turn out to be the most costly choice. One problem is that cost estimates
tend to understate indirect costs such as user support and downtime productivity losses.
Even if accurate figures are unavailable, systems analysts should try to identify indirect
costs and include them in TCO estimates