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<p>Tip: You have to use the Net Working Capital in your calculation.</p>
IT expenditure is generally expressed in terms of % of revenue. For financial institutions, who are completely dependent on technology, this figure can be as high as10%. For manufacturing companies, this figure is dependent on the nature of business and dependence on the technology.
Big but Good Question!
To calculate the right price the company can afford for a software solution suitable for its activity there many factors to consider:
1) doing it in home by hiring programmers: this may be costly but will produce it according to the company needs.
2) buying a ready made solution: this may be the best selection in application like accounting and point of sale.
3) contracting with an IT solutions maker to develop the applications needed by the company.
