Total Cost of Service (TCS)


Far beyond mere TCO, we’ll help you to understand the total cost in use of the services provided by the IT function. We do this on a Cost of Quality basis – so that you’ll have a profound understanding of the overall cost to the organization of IT systems and services.

Scope And Deliverables

Total Cost of Services (TCS) is a new way to look at your overall IT investments and infrastructure costs, using a Cost of Quality, or Activity Based Costing model. Using TCS, you’ll fully understand the direct and indirect components of both your fixed and variable IT costs throughout your organization.

Historically, organizations have invested directly in their IT infrastructure by purchasing the hardware and software.

Alternatively, over the past decade many organizations have determined that building and maintaining IT systems, while important, was not a core activity. These organizations outsourced their IT systems.

Newly emerging technology enables your organization to consider turing your IT function into a “consumable”. Consumable technology allows businesses to leverage the public infrastructure (Internet) by consuming services that are available as commodity applications (HRMS, Sales Force Automation, etc.). These are services (applications) that are developed by other companies and made accessible to businesses over the public and/or private infrastructure. Businesses do not have to build them themselves.

This means that in order for your business leaders to make fully informed decisions regarding building and maintaining IT infrastructure versus outsourcing versus treating IT as a consumable, they need to have access to the complete costs of these services (TCS).

SatiStar can help you to determine which technology should be built, which technology should be bought, and which technology should be consumed.

SatiStar uses TCS analyses to provide businesses with:

  • A new perspective on IT and infrastructure costs, including outsourcing
  • The ability to allow businesses to focus on their core competencies
  • A roadmap that allows businesses to develop and deploy needed IT infrastructure in the most appropriate way for their operations.
  • A method that enables your organization to achieve desired business results, while minimizing your overall cost structure.

What We Will Do

  • Provide a structured approach to analyzing your total costs of the services provided by your IT function.
  • Collect and analyze relevant Cost of Quality based TCS data.
  • Provide relevant TCS feedback to your leadership team.
  • Enable you to make clear and informed IT investment decisions.
  • Set up a structure to periodically re-evaluate TCS.
  • Ensure that relevant internal personnel become familiar with the approach.

What We Need You To Do

  • Provide us with access to key relevant employees and managers.
  • Authorize these resources to provide us with the required information.
  • Provide us with required access to your IT systems.
  • Assign an internal TCS team to the project.
  • Ensure availability of the team for working on the project in a timely manner.
  • Ensure management availability to review and approve the analysis in a timely manner.
  • Provide appropriate working space for the team’s activities.
  • Setup periodic re-evaluation of TCS.


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SatiStar's Experience Makes The Difference!

  • . . . worked extremely well with the departmental and site managers . . . goal oriented and met the objectives set within the quoted budget and ensured the results were attained for the Company.

  • The guys from SatiStar did more in one week than we were able to do in 6 months.

  • Achieving ISO registration was far less onerous than we thought, our employees really rallied to the cause. The registration effort really brought us closer together as a team, and SatiStar really came through for us when we needed them.

  • We started this process a year ago with Mickey helping us create a spaghetti map of our processes on the whiteboard, and then his team guided us through their streamlining methodology and got us to where we are today. Our processes now look nothing like the spaghetti map – and we’re much more efficient today

  • This projected cycle time reduction of over 80% annual cost savings amounting to over 3% of sales, one-time savings of roughly $10 million, and working capital reduction of roughly $30 million really have us excited!

  • An outstanding success with Motorola’s vendor audit! What made this an exceptional achievement is that it typically takes 4 to 5 attempts to pass this audit. SatiStar’s expertise made it easy to avoid all the extra attempts.