Blog: Managed Services

Key Takeaways from Forrester’s Total Economic Impact Study

October 6, 2021 - by Synoptek

Organizations across the world are constantly struggling to quantify and justify the financial impact of their technology investments. For organizations not in the business of IT, this often means an inability to dispel the C-suite’s apprehensions in investing in systems and solutions that can digitally transform their business. But for IT outsourcing organizations, the repercussions are more extensive, as they fail to convince and persuade customer organizations to partner with their business and invest in their solutions to streamline their operations, improve employee and customer experiences, and boost revenue or growth.

Forrester’s Total Economic Impact (TEI) consulting practice sets the stage for sufficient business value justification and financial impact of a technology investment. Read further to learn more about TEI, how insights from the study can be utilized to enhance an organization’s technology decision-making processes and assist in communicating their key value propositions.

What is the Forrester TEI Study?

Forrester Consulting provides independent and objective, research-based consulting and analysis that helps organizations understand the financial impact of a technology investment. The study helps both business technology customers understand the financial benefits of their own internal technology decisions and IT outsourcing organizations showcase the economic impact of the solutions they devise.

Using a proven, industry-standard framework, the TEI study helps enhance a company’s technology-related decisions by demonstrating, justifying, and helping realize the tangible value of IT initiatives to both senior management and other key business stakeholders. This analysis model examines all aspects of a technology solution or decision and states the associated bearing on the business by illustrating the ROI over a three- or five-year period. 

What Can Be Learned from Forrester TEI?

Each year, there is much to grasp from Forrester’s TEI study: from cybersecurity to data protection, cost savings to a range of business benefits. Being used for over 20 years now by technology customers and technology providers, the TEI methodology includes interviewing key stakeholders and provides plenty of insights to learn from. The study analyzes technology decisions across four components:

  1. Costs: Costs comprise all the investments that go into delivering the proposed value, or benefits, of the technology in question.
  2. Benefits: Benefits characterize the value that the technology delivers to the business over a period of time.
  3. Flexibility: Flexibility signifies additional value that the organization can obtain by investing on top of the initial investment that has already been made.
  4. Risk: Risks state the degree of uncertainty that the technology will carry in terms of its costs and benefits, including the probability that the investment will meet original projections. 

How Can You Pull Forrester TEI Insights into Your Strategy?

As an IT services organization, if you’ve invested substantial time, money, and effort in commissioning a Forrester TEI study, it also makes sense to pull the results and findings into your business strategy. Here are some tips:

  • Implement a plan to use that marketing asset to its best advantage: The first step in pulling the insights of your Forrester study into your strategy is to implement a plan on how you will use the results to increase brand awareness, quantify the ROI of your services, and gain more leads. Begin by knowing what your goals are and understanding your ideal customer profile; then, move ahead with your outreach campaign by aligning your service offering with your target audience.
  • Raise awareness about your services (and their corresponding ROI) among your audience: Once you have a clear idea of your goals and the profile of your audience, raise awareness about your services in your target market. Make customers get a better understanding of their challenges and state how opting for a particular technology solution can help them in transforming their IT landscape. Clearly state the catalysts that often lead customers to opt for the recommended technology services, as well as the importance of transitioning from good-to-have solutions to must-haves. Mention quotes and examples from existing customers to add credibility.
  • Use customer-centric messaging to generate additional leads: To boost sales and profit margins, use findings from the TEI study to highlight the value of the technology solution in question. Share customer anecdotes and stories to grab attention and use customer-centric messaging in the form of infographics, social media posts, blogs, and videos to generate additional leads. Make customers understand how their existing technology solutions are draining their resources, and how, by opting for your technology solutions, they can overcome all of their pain points, issues, and struggles. 

Leveraging the Powerful Combination of Forester TEI & Synoptek’s Services

Organizations – both IT and non-IT – have a lot to benefit from the TEI study. While non-IT organizations can get detailed analysis of the financial impact of their internal technology decisions, IT organizations can clearly demonstrate the costs, benefits, and flexibility customer organizations can achieve by opting for their services while also being aware of associated risks.

As a Global Managed Services Provider, Synoptek recently commissioned Forrester to carry out a TEI study of its services and the tangible value and ROI customer organizations can achieve by opting for Synoptek’s services. The study concluded that organizations can achieve a 188% ROI by partnering with Synoptek while achieving an NVP of $5.94 million over a three-year period. At the same time, Synoptek’s services also help deliver $413K cost savings via increased productivity, $1.6 million via increased operational efficiency, $2.9 million through improvement in the IT environment as well as $4.1 million via improved reliability of the IT environment.

If you have any technology requirement, we can help! Synoptek’s global IT outsourcing can deliver dedicated and shared expertise to integrate and manage the technologies required to modernize your environment, advance your IT maturity level and also help increase revenue, employee productivity, and operational efficiency – all while reducing overall IT expenditure. Contact us today!