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Video Conferencing Increases ROI by Dennis Thomas

Travel, Video Conferencing and a Return on Investment

With corporations all across cutting back on travel costs and tightening up the budgetary constraints on training, it’s only logical to assume that the purchase of a video conferencing  solution to be put on the back burner or set aside.

For a lot of companies, they do this because they do not see the inherent value to their organization and are truly looking at the bottom line.

How does one quantify the expenditure of a video conferencing solution?

Recently I had the opportunity to speak with a company about a solution for their main office, located here in Buffalo, NY. Two of their remote offices, however, are located in two completely separate countries, one in Europe and one in Asia/Pacific. In talking with them, I learned that they have two employees traveling at a time travelling to each of these locations six times a year. These employees stay in the remote area for a week at a time.

 I then sat down with them and worked out the following based upon their numbers for travel, assuming they cut down the travel by 50%.

 Europe Cost and Potential ROI

  Dollar Cost Man Hour Cost
Cost for 6 Travel meetings $32,675 642
Cost for 3 Video Conference and 3 Travel Meetings $18,605 441
     
Potential Savings $14,070 201

 

Asia/Pacific Cost and Potential ROI

  Dollar Cost Man Hour Cost
Cost for 6 Travel meetings $41,469 812
Cost for 3 Video Conference and 3 Travel Meetings $23,007 526
     
Potential Savings $18,472 286

 

Combined Costs and Potential ROI

  Dollar Cost Man Hour Cost
Cost for Travel meetings $74,144 1,454
Cost for Video Conference and 3 Travel Meetings $41,612 967
     
Potential Savings $32,542 487

 

As you can see, the total savings back to the company is assumed to be around $32,542. The total savings would cover the cost of a video conferencing solution. This also frees up a total of 487 man hours that could be repurposed within the organization and help the company move forward with critical projects and deadlines.


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