Not all verticals are the same when it comes to budgeting for ITAD. Naturally, and as expected, the more an industry is sensitive to compliance, the more it spends on IT and electronics recycling and as such, the financial sector and healthcare are the biggest spenders. Yet, the maturity level and understanding of ITAD requirements tend to be superior among healthcare institutions, even though the financial sector outspends healthcare.
Compliance Standards’ research finds there is no definite rule specific to how budgets are determined. But to generalize, almost half of the market embeds the cost of ITAD up front during the acquisition of new assets. This gives a competitive edge to OEMs and leasing/financing companies, at least with half of the companies. Therefore this creates a competitive disadvantage to non OEMs who must come up with clever strategies to work alongside OEMs.
Although IT Departments play a major role in budgeting, other key functions such as finance, telecom (for smartphones), and to a certain extent lines-of-business have contributory role in paying for ITAD. It reaches a high of 25% of the base who reported the finance department as a key contributor.
There is a lot to learn on the economics of ITAD, and this report seeks to identify some important pointers.