CAPE TOWN – IT hardware has an estimated residual value of around 10 percent, this means South Africa’s largest companies could be receiving up to R4 million at the end of a three-year depreciation cycle.
If chief investment officers (CIOs) do not act swiftly to recover residual value from their redundant IT equipment, staff will pocket the money. This is according to Xperien chief executive Wale Arewa.
He says the main reason why companies do not recover these funds on a regular basis is mainly due to lack of knowledge, poor inventory management or organised chaos designed for systematic misappropriation.
“If your company is not receiving this value from its depreciated IT hardware, you should ask the CIO how much you earn from depreciated IT equipment. In this day and age cost is a key driver of any business process and CIO’s are expected to reduce the total cost of ownership (TCO) of the corporation’s IT hardware infrastructure,” he explains.
The CIO’s main function is to deliver an effective IT infrastructure but at what cost. All companies are prone to suffer these unnecessary losses and they may be very difficult to prevent unless the CIO has a specific policy to recover this value and puts the necessary procedures in place.