A Critical Assessment of the Evaluation Methods of ICT Investment

A Critical Assessment of the Evaluation Methods of ICT Investment

Author: 
Ramesur, Taruna
Place: 
Hershey, PA
Publisher: 
IGI Global
Date published: 
2012
Editor: 
Bwalya, Kelvin Joseph
Journal Title: 
Handbook of Research on E-Government in Emerging Economies
Source: 
Handbook of Research on E-Government in Emerging Economies
Subject: 
Abstract: 

With the aim of becoming a cyber island and making Information and Communications Technology (ICT) one of the main pillars of the economy, the government of Mauritius has been investing huge sums of money in ICT projects. For instance, in 2009 ICT investments accounted for 5.7% of the total share of the Gross Domestic Product (GDP). Given this situation, it becomes crucial to evaluate ICT investments, and as such, the main aim of this paper is to investigate the existing methods used in the evaluation of ICT investments in the public sector and propose a framework for the evaluation process. The main contribution of this work lies in the fact that evaluation of ICT projects in the public sector has remained an unexplored area, and even in the context of the private sector, most studies have concentrated on developed countries. The main results from the survey carried out in the 22 ministries reveal that Payback Period (PB) and Accounting Rate of Return (ARR) are the main financial criteria used for the evaluation. The survey also shows that the major factors, which are prioritised during evaluation process, are the relevant costs, risks, and benefits. Based on the research findings, this chapter also proposes a framework for evaluating investments in ICT projects by the public sector.

CITATION: Ramesur, Taruna. A Critical Assessment of the Evaluation Methods of ICT Investment edited by Bwalya, Kelvin Joseph . Hershey, PA : IGI Global , 2012. Handbook of Research on E-Government in Emerging Economies - Available at: http://library.au.int/critical-assessment-evaluation-methods-ict-investment