Hidden costs of software projects

Today I have been writing content about selection and implementation of HRIS systems. One area where I have spent a bit of time, probably too much, is around identifying costs and benefits.  Many for HR professionals the implementation of an HRIS is the first time they have been involved in a software project, and therefore are sometimes not aware of these things.

Software implementation projects tend to have many hidden costs that you need to ensure are captured as part of you business case, and managed during the project. Example hidden costs are:

  • Lost of productivity during implementation, such as re-training
  • Lost of productivity through poor user support
  • Opportunity cost of management
  • Pilot costs
  • Internal resources working on the project
  • Internal marketing costs
  • Change management
  • Data conversion/Data cleansing costs
  • Tech-“savyness” of HR
  • User support both technical and business issues
  • Ongoing software and hardware maintenance