5 Signs You're Overspending on Your IT Asset Management Process
Most companies don't discover they're overspending on IT asset management until they run a proper audit. By then, the waste has been building for months or years.
According to Gartner, companies overspend an average of 30% on IT assets due to poor tracking, idle subscriptions, and failed device recovery. The good news: the warning signs are identifiable and fixable.
Here are five signs your ITAM process is costing more than it should.
1. You're Paying for Devices Nobody Is Using
1. You're Paying for Devices Nobody Is Using
Ghost assets are devices that still appear on your books but are no longer in active use. They belong to employees who left, were reassigned, or never activated their equipment.
Industry estimates put ghost assets at 15 to 20% of the average company's IT inventory. Each one represents a full replacement cost the next time a new hire joins.
Signs this is happening:
New procurement requests come in while returned devices sit unclaimed in storage
No automated alert when a device goes inactive for 30 or more days
Asset tracking relies on spreadsheets or manual check-ins
What to do:
Implement real-time asset tracking with automatic status flags
Connect offboarding triggers to your HR system so device recovery starts the day an employee leaves
Audit your asset register at least once per quarter
2. Your Subscription Fees Don't Match Your Headcount
2. Your Subscription Fees Don't Match Your Headcount
Many ITAM platforms charge a fixed monthly fee per seat, regardless of whether that device is active. For companies with seasonal hiring or contractor-heavy teams, this creates consistent overpayment.
Research shows companies on per-seat ITAM subscriptions overpay by 18 to 22% during low-hiring periods. Add storage fees, retrieval fees, and data erasure costs on top of the base subscription and the gap widens further.
Signs this is happening:
You pay the same fee in a slow quarter as in a peak onboarding period
Your contract locks you in at a fixed seat count regardless of actual usage
You've stopped tracking add-on costs because there are too many line items
What to do:
Calculate your true cost-per-device over 12 months, including every add-on
Compare pay-per-use models that scale directly with active devices
Avoid contracts with seat minimums or exclusivity clauses
3. You Replace Devices Instead of Reusing Them
3. You Replace Devices Instead of Reusing Them
The average laptop has a productive lifespan of 4 to 5 years. Most companies replace devices every 2 to 3 years without a structured reuse or refurbishment process.
A well-managed device reuse program can reduce procurement costs by up to 35%. Most companies never capture that saving because returned devices sit in storage with no clear redeployment workflow.
Signs this is happening:
Procurement team orders new devices by default without checking available inventory
Returned laptops pile up because there is no certified data erasure process
No policy defines when a device is eligible for redeployment vs. retirement
What to do:
Establish a device reuse policy with defined refresh cycles (e.g., redeploy devices under 3 years old)
Require ISO 27001-compliant certified data erasure at every offboarding
Track device age and condition centrally so redeployment is the first option, not the last
4. Offboarding Takes Too Long and Devices Go Missing
4. Offboarding Takes Too Long and Devices Go Missing
Failed device recovery is one of the most underestimated costs in ITAM. The industry average retrieval success rate sits at 70 to 75%. Every unrecovered device is a full replacement cost.
The average total cost of a lost or unrecovered laptop, including hardware replacement and data exposure risk, ranges from $1,800 to $2,500 per device. For a team of 100 employees with standard turnover, that adds up fast.
Signs this is happening:
Device recovery is triggered manually, days or weeks after an employee's last day
No visibility into device location once it leaves the employee's hands
Recovery rates in Latin American markets are particularly low due to logistics gaps
What to do:
Automate offboarding workflows connected to your HR system
Work with a provider that has owned last-mile logistics in your key markets, not third-party carriers
Set a maximum recovery window (10 business days is a reasonable benchmark) as a hard vendor SLA
5. Your IT Team Spends Too Much Time on Manual Tasks
5. Your IT Team Spends Too Much Time on Manual Tasks
Hardware and subscriptions are the visible costs in ITAM. The hidden cost is labor: the hours your IT and ops team spend on procurement emails, shipping follow-ups, customs paperwork, and spreadsheet updates.
According to Forrester, IT teams spend an average of 30% of their time on manual asset tracking and logistics coordination. Automating those workflows reduces IT admin time by 40 to 60%.
Signs this is happening:
Device status requires manual check-ins with employees or shipping carriers
Onboarding a new hire in a new country takes days of back-and-forth coordination
There is no single dashboard showing procurement, tracking, and recovery in one place
What to do:
Centralize all device lifecycle stages in one platform
Choose a provider that handles customs, local compliance, and last-mile logistics on your behalf
Measure IT hours spent on device logistics before and after switching providers to quantify the saving
The Bottom Line
The Bottom Line
Overspending on ITAM is rarely one big cost. It's the accumulation of ghost assets, idle subscriptions, premature replacements, missed recoveries, and hidden labor time. Companies that audit and restructure their ITAM process save an average of 25 to 40% in the first year.
If two or more of these signs apply to your current process, a cost audit is the right next step.
Tecspal offers a free IT asset management cost audit for companies operating in Latin America. Contact us to find out where your budget is going and what you can recover.
What is the average cost of a lost laptop for a company?
The total cost ranges from $1,800 to $2,500 per device, including hardware replacement and data exposure risk.
How often should companies audit their IT assets?
At minimum, once per quarter. Companies with high employee turnover or contractor-heavy teams should audit monthly.
What is a ghost asset in IT asset management?
A ghost asset is a device that still appears on a company's asset register but is no longer in active use. It may belong to a former employee, be sitting unretrieved in storage, or have never been activated.
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