InfoTech Partners North America, Inc.
Technology Budget
July 1999 FYE 12/31/99 FYE 12/31/00 FYE 12/31/01 3 Year Total/Ave.
Price # Amount # Amount # Amount # Amount
Software/Applications
Time and Billing Update/Purchase/Maintenance $1,000 1.2 $1,200 1.3 $1,250 1.0 $1,000 3.5 $3,450
CPA Software/Training $20,000 1.1 $22,400 1.1 $22,400
Windows Update  (98/NT) $75 50.0 $3,750 65.0 $4,875 115.0 $8,625
MS Office 2000 Upgrades $200 75.0 $15,000 75.0 $15,000
BNA Depreciation $6,000 0.2 $1,200 0.2 $1,200 0.2 $1,200 0.6 $3,600
Misc. Software/Upgrades $5,000 1.0 $5,000 1.0 $5,000 1.0 $5,000 3.0 $15,000
Workpaper software GoSystem Audit $1,800 1.0 $1,800 1.0 $1,800 1.0 $1,800 3.0 $5,400
Workpaper Implementation/Training  $2,000 1.0 $2,000 1.0 $2,000 1.0 $2,000 3.0 $6,000
Tax Software (CCH ProSystem FX) $25,000 1.2 $30,000 1.2 $30,000 1.2 $30,000 3.6 $90,000
CD ROM-Tax Research/Libraries $6,000 1.0 $6,000 1.0 $6,000 1.0 $6,000 3.0 $18,000
Virus, Security, and Other Utilities $100 75.0 $7,500 75.0 $7,500 75.0 $7,500 225.0 $22,500
Network Utilities/hardware $4,000 1.0 $4,000 1.0 $4,000 1.0 $4,000 3.0 $12,000
Servers
SMS Server for Implementation Maintenance $18,000 1.0 $18,000 1.0 $18,000
File Server NT(Ali)  and Novell (Frazier) $25,000 1.0 $25,000 1.0 $25,000
Convert Tyson Server to Exchange Server $850 1.0 $850 1.0 $850
Convert Holmes Server to Firewall Server $8,000 1.0 $8,000 1.0 $8,000
Various Server Upgrades $4,500 1.0 $4,500 1.0 $4,500 1.0 $4,500 3.0 $13,500
Communications Server (Fax, Dial-up, VPN) $7,500 1.0 $7,500 1.0 $7,500
New Backup Tapes $700 1.0 $700 1.0 $700 1.0 $700 3.0 $2,100
UPS $1,100 1.0 $1,100 1.0 $1,100
Purchase/Upgrade NOS $3,000 1.0 $3,000 1.0 $3,000 1.0 $3,000 3.0 $9,000
Cabling & NICs
Network Interface Cards/Laptop NIC Cards $165 26.0 $4,290 22.0 $3,630 28.0 $4,620 76.0 $12,540
Cisco Switches  $25,000 1.0 $25,000 1.0 $25,000
Hubs-10Mbps 9 port $100 3.0 $300 1.0 $100 1.0 $100 5.0 $500
Cabling & Certification $175 80.0 $14,000 80.0 $14,000
Computers
Desktop Computers 450PIII w/256MB RAM $2,500 8.0 $20,000 8.0 $20,000 14.0 $35,000 30.0 $75,000
Notebooks -Compaq 366 w/128MB RAM $4,500 18.0 $81,000 14.0 $63,000 14.0 $63,000 46.0 $207,000
Printers
HP 8000 $3,500 2.0 $7,000 1.0 $3,500 3.0 $10,500
Network connection (HP JetDirect) $250 2.0 $500 2.0 $500
HP Color Inkjet $800 4.0 $3,200 4.0 $3,200
HP Portable Printer $300 9.0 $2,700 7.0 $2,100 7.0 $2,100 23.0 $6,900
Communications
Windows Terminal Server with Citrix MetaFrame $21,750 1.0 $21,750 2.0 $1,000 2.0 $1,000 5.0 $23,750
Modems and 4 port Digiboard $2,600
Firewall Server $15,000
Telephone Line Charges  $1,800 1.0 $1,800 1.0 $1,800 1.0 $1,800 3.0 $5,400
Internet Service Provider $12,000 1.0 $12,000 1.0 $12,000 1.0 $12,000 3.0 $36,000
Internet Line Charges $12,000 1.0 $12,000 1.0 $12,000 1.0 $12,000 3.0 $36,000
Internet implementation/Web maintenance $6,000 1.0 $6,000 1.0 $6,000 1.0 $6,000 3.0 $18,000
Other Hardware
Move CDs to HD and Upgrade Clay Server $2,500 1.0 $2,500 1.0 $2,500
Training Projector  and  Videotaping $7,500 1.0 $7,500 1.0 $7,500
Training Room Computers $2,500 13.0 $32,500 13.0 $32,500
HVAC-Server Room- (Move and Cool) $5,000 1.0 $5,000 1.0 $5,000
Other
Paperless Office: Imaging $750 20.0 $15,000 40.0 $30,000 40.0 $30,000 100.0 $75,000
Video Conferencing Remote $2,000 1.0 $2,000 1.0 $2,000 1.0 $2,000 3.0 $6,000
Phone System and  Computer Telephony Integration $50,000 2.0 $100,000 0.5 $25,000 0.5 $25,000 3.0 $150,000
LAN Maintenance/Integration $5,000 2.0 $10,000 2.0 $10,000 2.0 $10,000 6.0 $30,000
External Consultants $12,000 1.0 $12,000 1.0 $12,000 1.0 $12,000 3.0 $36,000
Direct Training Cost
Average Cost for Training/Person $600 80.0 $48,000 80.0 $48,000 80.0 $48,000 240.0 $144,000
Network Supervisor training/update $12,000 1.0 $12,000 1.0 $12,000 1.0 $12,000 3.0 $36,000
 
TOTAL HARDWARE, SOFTWARE & OTHER     $565,040   $389,080   $351,695   $435,272
Contingency 10% (includes shipping and sales tax) $56,504 $38,908 $35,170 $43,527
   
TOTAL TECHNOLOGY INVESTMENT     $621,544   $427,988   $386,865   $478,799  
PROJECTED CHARGEABLE HOURS--5% Growth     90,000   94,500   99,225   94,575
TECHNOLOGY COST PER CHARGE HOUR     $6.91   $4.53   $3.90   $5.06  
Projected Gross Revenue 10% annual increase     $6,800,000   $7,480,000   $8,228,000   $7,502,667
Add Technology Recapture ($8/hr 90%)     $648,000   $680,400   $714,420   $680,940
TOTAL REVENUE     $7,448,000   $8,160,400   $8,942,420   $8,183,607  
                   
TECHNOLOGY COST AS A % of TOTAL REVENUE     8.35%   5.24%   4.33%   5.85%  
Full Time Equivalent Personnel     92   93   93
Revenue Per Full Time Equivalent     $80,957   $87,746   $96,155
Cost of Technology Per Full Time Equivalent     6,756   4,602   4,160