Guidelines for Lease vs. Purchase of Information Technology

 Guidelines for Lease vs. Purchase of Information Technology
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Multi-State
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US-03081BG
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Description

The rate of technology change is increasing, with an emphasis on client/server technology, faster system development, and shorter life cycles. This has led to spiraling information technology (IT) budgets, driving the need for a re-evaluation of IT management issues. Organizations must find new ways to accommodate technological change. Leasing has recently emerged as a feasible, cost-effective alternative to purchasing equipment, particularly in the desktop and laptop areas.

The decision on whether to lease or purchase equipment must be made by:
" Examining the IT management processes at the organization.
" Determining the business needs regarding IT of the organization.
" Conducting a cost-benefit analysis of the leasing and purchasing alternatives

If done in the right way for the right reasons, leasing can be an efficient and cost-effective alternative to purchasing. If handled incorrectly, leasing can be more expensive and harder to manage than an outright purchase.

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FAQ

Why would companies choose to lease rather than buy it equipment?

Why do companies lease rather than buy?

Why is it cheaper to lease than to buy?

Is it financially better to lease or buy?

Is it better to lease or buy a computer?

Can leasing be cheaper than buying?

Is leasing computers a Good Idea?

Why leasing is a bad idea?

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