Wednesday, February 22, 2012

Hidden Cost of IT Disposal

Improper disposal of computer equipment can expose a company to various risks. Computer hardware needs to be properly retired, and special steps need to be taken in the areas of security, legal compliance and accountability:

Potential costs of disposal managementPotential cost of sale to employees
  • Administrative tasks (inventory, forms, accounting, etc.)
  • Backing up and wiping data from hard drives
  • Storage costs until computers are removed
  • Packing and shipping
  • Disposal costs
  • Opportunity costs (could the time or space used in the above be used more profitably?
  • Selling (deciding prices, use of an area for sales, transfer documentation, etc.)
  • Testing the PCs and reloading operating systems
  • Processing payments
  • Providing technical support (ongoing …)
  • Opportunity costs

Businesses also need to be aware of the following:

  • All data needs to be thoroughly erased from hard disks. This protects against software licensing infringement and loss of sensitive information.
  • Obsolete and non-functional equipment needs to be disposed of according to environmental laws and regulations.

A different perception of end-of-use computer equipment is desirable!

If the equipment still works, and is not too old, let it go to someone that can benefit from its reuse.

If it does not work, or is more than about five years old, let us dispose of it properly. A detailed report can be provided, listing hardware received by serial number and certifying erasure of all software and data.

Previously, we have dismantled and disposed of end-of-life equipment at no cost to the public or to organisations. We regret that now, however, we may have to charge for disposals in order to cover our recycling/handling costs.

TERC will always give an upfront binding quote: charges, which are designed simply to cover our costs, are payable in advance, which means that after receipt of the equipment, we will not be able to add on any hidden “extras”. This is why we ask companies to fill in a detailed form listing items for disposal.

Unscupulous disposal companies may:

  • Offer a very low bid for disposal of your equipment to get your business.  However, charges appear on the final reckoning that “were not able to be quoted exactly” until the work was completed.  Sometimes these charges are not even mentioned except in the small print.  Other charges may be calculated using variables such as weight or volume of hardware that make it impossible to predict the final cost.  These may result in charges you didn’t even know existed, as well as in exorbitant shipping and handling fees.  When the bill arrives, the “lowest bidder” may really have become the highest bidder.
  • Claim to be able to do everything the competition does -  without charge.  However, the proper preparation of computers for recycling or refurbishment involves costly, labour-intensive tasks (asset tag removal, erasing software or destroying hard drives, WEEE and RoHS compliant disposal, etc.).  If a computer recycler is not charging a fee for processing equipment, he is losing money on every computer that he is not able to sell.  The more computers that are processed, the more money is lost.

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Staffordshire Recycling Facts

There are now 14 recycling centres open across Staffordshire and residents of Stoke on Trent have access to 2 within the city of Stoke on Trent. Each centre caters for householders to bring in their unwanted and redundant items for recycling. There are various recycling schemes available throughout Staffordshire, click here if you would like to find out about new recycling schemes within Staffordshire.

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