HCM Total Cost of Ownership

Total Cost of Ownership (TCO) financial analysis and benchmark tools help companies determine the total costs associated with their HCM processes and systems such as Payroll, HRIS, and Benefits Administration.

Total Cost of Ownership


This comprehensive TCO analysis is applicable to a wide range of companies using in-house, outsourced or hybrid HCM staffing models and the results include:

  • system costs for implementation, upgrade and maintenance
  • labor costs in whatever department they may reside (payroll, HR, finance, accounting, IT, legal, etc.)
  • non-labor costs such as facilities, general and administrative, third party payments.


The analysis results allow our customers to benchmark their organizational costs against peer groups based on organization size, industry, software system and complexity of benefits.

Total Cost of Ownership


The completed TCO analysis highlights the balance between labor and technology to project the potential ROI of:

  • moving to a new environment
  • introducing new technology
  • upgrading current platforms
  • or investing in process improvements.

As a result, stakeholders can make informed decisions about the financial impact of outsourcing versus other internally based options or update the resources they employ based on market conditions or within the organization itself.

A Total Cost of Ownership analysis can be a key first step when determining a company’s HCM roadmap and provides a solid foundation for the full range of Sability HCM services:

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