Intranet ROI? Turnkey is best.
The ROI for a 500-employee company is about $7M.
IT Resources
Finally got your in-house intranet built? Now you need to keep it patched, upgraded for browser changes, secure and running 24/7. That takes 3 full-time IT experts at $100k each.1
A turnkey, cloud-based, intranet uses zero IT support staff or salary.
Software & Hardware
If you’re building your own on-site intranet, first you need to purchase a server farm and get it operating and secured. Then you need to purchase and install the required software. Setting this up for SharePoint will cost you about $150k plus another $11k per year in maintenance fees.1
A cloud-based intranet frees you from licenses and maintenance fees.
Employee Engagement
Measurement of 193 companies3 shows that those with top-quartile employee engagement operate better and enjoy 22% higher profits.
A great intranet plays a key role in improving employee engagement. Improved communications is strongly tied to improved engagement.5
Development Cost
You need usability, information architecture, web & mobile developers to develop your own custom intranet. That requires 3-6 staff of consultants at ~$100k each.6
A turnkey intranet requires no development and is up to date forever.
Development Time
Developing your own custom intranet from a toolkit like SharePoint takes a lot of time. The average development time is 17 months.6
A well-designed, turnkey intranet can be rolled out in less than 1 month.
Bibliography
- SharePoint costs: http://www.ostermanresearch.com/whitepapers/orwp_0198.pdf — where we assume that the server cost for a 500-person company is 50% higher than that for a 100-person company.
- http://www.portalfronthosting.com/blog/how-much-does-a-sharepoint-license-cost
- http://www.gallup.com/businessjournal/163130/employee-engagement-drives-growth.aspx
- The calculations assume a 500 person company with $50M in revenue and 10% profits.
- http://www.ijsrp.org/research-paper-0813/ijsrp-p2059.pdf
- http://www.nngroup.com/articles/intranet-design/
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