**2. Theoretical framework**

The prediction of maintenance costs is one of the important parameters in the budgeting of IT systems. It can help organizations with cost-effective management, including the intangible costs of technology and measuring the effectiveness and efficiency of technology services with regard to spending everyday expenses.

#### **2.1 IT operating costs**

#### *2.1.1 Definitions and concepts*

In information technology, operating costs refer to the amount spent on information technology services on a daily basis. Operating costs may be due to expenses that are spent on personnel, maintenance, hardware, power and software requirements, space rentals, and security.

**97**

*ANFIS to Quantify Maintenance Cost of IT Services in Telecommunication Company*

Operating costs are often calculated annually or every 3 months. Some costs and benefits are simply measurable by using operational data and research techniques, which we call tangible costs, while some topics, such as intangible costs, may not be easily measurable and cannot be quantified in monetary terms [5]. The investment should be financially proportional to the function and profitability of the organization. Considering IT investment in organizations, costs, technical discussions, implementation tools, risk assessments, procurement strategies, and benefits

In information technology and systems, the actual cost of developing them is

The direct costs relate to the factors for implementation and operation of information technology; direct costs in projects are often underestimated and beyond hardware, software, and installation costs. Direct costs may also include additional hardware that is unpredictable. This includes increased processing power, increased memory and storage facilities, and the cost of installation and implementation, which are categorized as direct costs and typically include consulting services,

Indirect cost includes two categories of human and organization. Indirect human costs include management time. Expenditures related to management time are specifically designed to integrate new systems into common activities. In addition, due to the creation of new technology, more time management should be spent on revision, approval, product reform, technology-related strategies, and intelligence systems. Organizational indirect costs include organizational issues that

One of the main issues and difficulties associated with information technology costs is the recognition of costs, especially those that are of an indirect nature [1]. Indirect costs can be four times higher than direct costs. Some executive managers do not know clear understanding of indirect costs, and some seek to reduce the portfolio by attracting the manager support and at the same time increasing their

One of the biggest indirect costs is human time management. When new technology is created, administrators may spend time for revising, approving, and subsequently reforming IT-related strategies. Sample lifetime of backup costs is at least 400% of the initial purchase price. Then indirect costs arise from the development of new knowledge in the employee and the increase of flexibility and their overall contribution to the organization. Some indirect costs arise from employee payments and rewards that this staff turnover should be considered in the assessment of information technology [6]. Irani and Mohamed introduced a two-layer system for categorizing indirect human costs. The first layer is related to management, staffing, finance, and maintenance, and the second layer is introduced for specific cost elements. In the first layer of management, it decides how much of the expenditure is spent on information technology. Employees are those involved in information technology. Finance is the allocation of funds and maintenance cost for

move from old-time activities based on the impact of new systems [7].

the development and implementation of technology.

*DOI: http://dx.doi.org/10.5772/intechopen.82827*

should be taken into account.

*2.1.2.1 Direct costs*

*2.1.2.2 Indirect costs*

portfolio value.

*2.1.2 Real costs of information technology*

divided into two categories of direct and indirect costs [6].

installation engineers, and software and network hardware [7].

#### *ANFIS to Quantify Maintenance Cost of IT Services in Telecommunication Company DOI: http://dx.doi.org/10.5772/intechopen.82827*

Operating costs are often calculated annually or every 3 months. Some costs and benefits are simply measurable by using operational data and research techniques, which we call tangible costs, while some topics, such as intangible costs, may not be easily measurable and cannot be quantified in monetary terms [5]. The investment should be financially proportional to the function and profitability of the organization. Considering IT investment in organizations, costs, technical discussions, implementation tools, risk assessments, procurement strategies, and benefits should be taken into account.
