How to calculate your service desk's cost per ticket

IT service desk leaders are under constant pressure to optimize costs without compromising on service quality. One key metric they rely on to navigate this challenge is the cost per service desk ticket. Apart from being a measure of expenses, this metric provides a clear view of resource utilization and operational efficiency.

However, traditional cost calculations no longer tell the full story. It is important for IT leaders to rethink how they measure and interpret this metric to reflect the efficiencies gained from modern solutions. In this article, we’ll break down the true meaning of the cost per ticket and delve into the factors that influence it.

What is the cost per ticket?

The cost per ticket refers to the total expenditure—measured over a defined period—that an organization incurs to resolve an incident or a service request. Simply put, it is a breakdown of the cost of providing IT support per ticket. It includes costs incurred over the entire life cycle of the ticket (from creation to resolution) and the cost of all associated resources. As a critical metric, it enables IT service desks to assess the cost-efficiency of their operations. It also helps them answer some of the fundamental questions:

• Are we using our resources efficiently?
• Is the service desk impacting employee productivity in a good way?
• Are we investing in the right tools and technology?

Here's the formula to calculate the cost per ticket:

While a low cost per ticket might seem like a win at first glance, it doesn’t always equate to better service if your employees are unhappy with the IT service desk. Service desk managers need to measure the overall employee satisfaction score and correlate it with the cost per ticket. The true goal is finding the sweet spot where cost reductions don’t come at the expense of delivering the quality of support your employees expect.

Key factors to include when calculating the cost per ticket

Calculating the cost per ticket isn’t a one-size-fits-all exercise. It requires looking at several key variables, each with its own influence on the final number. In 2021, MetricNet shared a snapshot of the wide range of the cost per ticket in North America—anywhere from as low as $0.74 to as high as $104.68, depending on the support channel. While these numbers might serve as a reference point, today's increasingly complex IT operations require a deeper evaluation of the different factors shaping this metric.

Let us take a closer look at the key elements that should be top of mind when evaluating your service desk's cost per ticket.

Agent-related costs

Agents are the backbone of a service desk, and agent-related expenditures are often the largest contributors to the cost per ticket calculation. Calculating these expenditures isn't just about counting agents' salaries and benefits; you should account for the following factors as well:

• The time spent by agents: The longer agents take to resolve issues, the higher the cost is.
• First contact resolution (FCR): Resolving tickets in the first interaction helps minimize escalations, reduce costs, and improve efficiency. But, at the same time, an FCR-led approach may lead to technicians focusing just on ticket closure without providing meaningful resolutions. This might lead to an increased ticket reopen rate that spikes the cost per ticket.
• Escalations: When issues are too complex for first-line agents, ticket escalations to higher-level experts become necessary, driving up the overall cost due to the additional time and specialized knowledge required.
• Training and development: A well-trained agent resolves issues faster and with fewer escalations, which reduces both the resolution time and the overall cost and prevents unnecessary delays and resource drain.
• Agent absenteeism: High absenteeism forces other agents to shoulder additional workloads or increases the need to bring in temporary support, leading to inefficiencies and potential service disruptions.

The ticket mix: Incidents vs. service requests

Not all tickets are created equal, and the ticket mix plays a crucial role in shaping the final cost breakdown. Incidents, like system outages, software crashes, or security breaches, are unplanned disruptions that require immediate troubleshooting and resolution. Service requests, on the other hand, involve planned activities such as software installations or access provisioning.

While it is tempting to assume that incidents are resolved quickly and service requests take longer, the reality is different. Some incidents, like network failures, require extended troubleshooting and multiple teams to step in, thereby driving up costs. Likewise, some service requests, like password resets, can be resolved instantly through automation, thus lowering the average cost per ticket.

Therefore, a shift in the ticket mix can result in noticeable cost variations, even if the total number of tickets remains unchanged.

Technology investments

When evaluating technology investments in the context of calculating the cost per ticket, organizations need to assess the full range of costs incurred from the tools and systems they have implemented. Technology investments include the costs of ticketing systems, software subscriptions, and maintenance as well as the costs associated with automation tools and self-service platforms.

• ITSM platforms: ITSM platforms play a crucial role in ticket management by automating workflows, ensuring efficient routing, and tracking issues from start to finish. These systems require an up-front investment, but their real value lies in the operational savings they generate over time by streamlining ticket management processes and improving agent productivity. However, organizations must remain mindful of the fact that the amount spent on these platforms directly impacts the cost per ticket. While top-tier licensing, customization, or integration can lead to increased costs, a well-optimised ITSM platform can reduce costs by automating manual tasks, enabling self-service, and shortening resolution times. The key is to strike a balance where organizations invest in capabilities that drive efficiency while avoiding splurges on bloated ITSM platforms that might push up their costs and hurt their bottom lines.
• AI and automation: Organizations that have invested in self-service portals or AI-driven chatbots, whether through a knowledge base, chatbot integration, or automated ticket routing, might see a significant reduction in the cost of handling tickets compared to those that haven't. This is because self-service options allow users to resolve issues independently, reducing the number of tickets submitted to the service desk. This, in turn, eases the strain on support agents, ultimately lowering the overall operational cost.
• Ongoing maintenance: Though tech investments can lower the labor cost by reducing the ticket volume, there are still costs associated with maintaining and optimizing these tools to ensure they continue to perform as expected. This includes technical support, integrations with other systems, and updates that ensure the tools remain effective as business needs evolve.

Operational infrastructure costs

Many organizations forget to account for the hidden costs of infrastructure. You should consider physical infrastructure, including office space, utilities, and inventory management along with servers, data centers, and networking equipment. These all contribute to service desk costs, especially for on-premises operations.

The cost per ticket or the value per ticket? Reframing IT as a profit center

The cost per ticket has long been viewed as a straightforward way to track IT service desk efficiency. But focusing on the cost alone can lead to shortsighted decisions. What if we reframed this metric to look at the value per ticket? In other words, what value does your service desk generate by resolving issues quickly and effectively?

For example, by fixing 15 network issues in less than the MTTR, you could not only restore service faster but also improve uptime, likely resulting in significant cost savings and productivity gains for your organization.

Similarly, when you automate routine service requests such as password resets or software provisioning by leveraging workflow automation or orchestration, you drastically reduce the time employees wait for access or resolution. This, in turn, saves valuable hours, improving overall productivity and delivering significant cost savings.

Rather than relying solely on the cost per ticket, IT service desk managers should consider a more comprehensive dashboard that tracks both cost- and value-driven metrics. This ensures cost-optimization efforts don't come at the expense of the service quality, user experience, or long-term business impact.

To truly embrace this shift and deliver value, your service desk team should follow these best practices:

• Implement end-to-end automated workflows for incident resolution (e.g., automated account unlocks) and AI-driven service delivery (e.g., Microsoft 365 account provisioning) to reduce manual workloads and accelerate response times.
• Invest in advanced training, GenAI-assisted troubleshooting, and industry certifications to enhance problem-solving efficiency.
• Adopt shift-left strategies to empower L1 teams with better tools and knowledge, minimizing escalations to L2 or L3 teams.
• Optimize ITSM reporting and analytics to gain insights into trends, efficiency gaps, and opportunities for automation.
• Use AI-driven proactive support to detect and resolve issues before they impact users.
• Streamline resource allocation and optimize ticket routing to enhance efficiency and reduce operational bottlenecks.

Calculating the cost per ticket with ServiceDesk Plus

With ServiceDesk Plus, you can track and analyze service desk costs in real time, ensuring financial transparency while driving continuous improvement. By utilizing work logs, you can capture the exact amount of time spent by agents on tickets to determine labor costs, factoring in the wages per hour to ensure precise cost calculations based on agents' salaries.

ServiceDesk Plus also provides powerful reports and dashboards with real-time analytics to help you monitor costs and identify opportunities for optimization. With the Analytics Plus integration, Zia, our AI powerhouse, can help you gain deeper insights into cost trends and automation opportunities, enabling data-driven decision-making for strategic ITSM.

To see how you can streamline IT service desk cost tracking and optimize IT service delivery, request a free demo with our product experts today!