Final answer:
In IT initiatives, an example of an indirect cost is user downtime, which encompasses productivity losses rather than direct expenditures like acquisition, installation, or maintenance. User downtime is caused by system changes and training that prevent users from performing their regular tasks.
Step-by-step explanation:
When evaluating the costs associated with an IT initiative, it is essential to distinguish between direct and indirect costs. Direct costs are expenses that can be directly attributed to the project, such as acquisition cost, installation cost, and maintenance cost. These are straightforward as they are tied specifically to the initiative's implementation and operation.
On the other hand, indirect costs are not directly tied to the purchase or implementation of the IT initiative but occur as a result of the initiative being implemented. An example of an indirect cost is user downtime, which refers to the time when users are unable to perform their usual tasks due to adaptations to new systems, training, or system adjustments. This cost is less evident as it deals with productivity losses rather than concrete expenses.
The cost of using equipment or technology, like a computer, can be seen as a mix of power and time. The same principle can apply to IT initiatives where higher power usage and more time spent can lead to higher costs. However, user downtime stands out as an indirect cost because it encompasses the lost productivity that could occur with IT-related transitions or downtimes, which can be costly in terms of business operations.