Information technology investment evaluation: Investments in telecommunication infrastructure

Evaluation of investments in information technology is quite a difficult task, difficulties being both conceptual and functional. The fact that the investment’s performance is very much dependent on the way a certain information technology project is implemented renders the evaluation procedure even more difficult. In this paper we propose a certain methodology for evaluating investments in information technology, placing special emphasis on investments in telecommunications infrastructure. in the first place, assessment of the alternative implementations/design solutions is conducted and selection of the one best satisfying user and system requirements is selected. At a second level, the selected alternative is compared with the present situation so that the expediency and feasibility of assuming the investment is determined. Evaluation is based on both economical and technical criteria. (C) 1997 Elsevier Science Ltd